From Veyance, Nick Gulli (second from left), director of aftermarket sales, and Steve Morris (second from right), director, global supply chain, were on-hand to accept the company’s award.

On-hand from APH to receive their award were Corey Bartlett (second from right), president, and John Bartlett (second from left), CEO.

CHICAGO – Polk presented its 2011 Polk Inventory Efficiency Awards Wednesday during a ceremony at the Global Automotive Aftermarket Symposium (GAAS) held at the Hyatt Regency O’Hare near Chicago. The Polk Inventory Efficiency Award program, now in its seventh year, annually recognizes and rewards outstanding aftermarket companies for process improvements related to inventory and supply chain efficiency.
 
The two companies honored with this year’s awards were Veyance Technologies and Automotive Parts Headquarters Inc. (APH). The awards were presented by Mark Seng, vice president, aftermarket and commercial vehicle and Polk’s global aftermarket practice leader, and Stephen Polk, chairman, president and CEO of R. L. Polk & Co.
 
“We are pleased to honor Veyance Technologies and Automotive Parts Headquarters with this year’s Polk Inventory Efficiency Award,” said Seng. “It’s an honor to have these organizations join a prestigious group of exceptional companies who are driving industry-leading inventory management and supply chain practices within the aftermarket.”
 
Veyance Technologies, based in Fairlawn, Ohio, was recognized in the Manufacturer category. As the exclusive manufacturer of Goodyear Engineered Products worldwide, Veyance produces and markets Goodyear-branded air springs, automotive belts and hoses, conveyor belts and services, industrial and hydraulic hose, rubber track and molded products.

Veyance embarked on a project to reduce logistics, annual expediting costs and reduce “slow-mover” inventory. As a result, Veyance said it saw a 41 percent reduction in logistics costs – over $30 million; a $1.8 million reduction in annual expediting costs and a $60 million annual cash flow increase. In addition, the company experienced a 50 percent reduction in “slow-mover” inventory and a 40 percent improvement in on-time-in-full delivery (OTIF).

“The project has truly changed the company culture,” Seng said. “The new standards and workflow processes have been implemented across operations, sales and customer service.”

New standards and workflow processes have been implemented across operations, sales and customer service within 23 Veyance manufacturing facilities and 11 distribution centers in North America – while maintaining fill rate and on-time metrics of 95 percent or higher.

“On behalf of the Veyance Technologies team, we are pleased to receive this prestigious award from Polk,” said Jon Cocco, general manager of Veyance's transportation and off-highway business. “It’s a true testament to our team’s hard work and effort to reduce costs by implementing efficiencies across our operations. It is our hope that the work we’ve done can serve as an example for other companies as well.”
 
Automotive Parts Headquarters Inc. was recognized by Polk in the Retailer/Distributor category. As a family- and employee-owned business, the St. Cloud, Minn.-based aftermarket auto parts distributor and store group implemented a unique twist on time-tested inventory management practices that helped them stand out among other nominees.

“This year’s recipient [APH] doesn’t claim to have re-created inventory management by any means,” Seng said. “Much of what they’ve done is based on simple, time-tested practices.”

The organization’s focus was on improving customer service while increasing inventory efficiency. They strived to have the right inventory in their 110 locations, not just the right dollar amount of inventory. As part of this process, they built their CounterLogic database that allows their inventory management system to know which products are required for specific repairs – ensuring all are items on hand when needed.

As a result, APH was able to achieve substantial reduction in inventory that had not moved in 24 months; double-digit increases in coverage; and a healthy improvement in inventory turns. APH reported a 25 percent reduction in “dead” inventory as well as a 10 percent increase in coverage, a 5 percent increase in turn and a 22 percent increase in sales.

“We’d like to thank Polk for recognizing the APH team with this important award in the industry,” said Corey Bartlett, president of Automotive Parts Headquarters Inc. “We’re pleased to be recognized alongside other leaders in inventory efficiency in our industry, and look forward to continuing to hone our processes.”
 
Award submissions were reviewed by a selection committee comprised of aftermarket industry leaders not affiliated with Polk or any of the nominated companies. Winners were selected anonymously based on a set of criteria agreed upon by the judging committee.

Applications are currently being accepted for the 2012 Polk Inventory Efficiency Awards program.

Click on the links to see video segments produced highlighting the winning practices from Veyance Technologies and Automotive Parts Headquarters Inc.

Counterman Editor Mark Phillips contributed to this report.