Don Reimondo, president and CEO of HDA Truck Pride and John R. Washbish, president and CEO of Aftermarket Auto Parts Alliance (AAPA), announced the creation of the Aftermarket Distributors Alliance LLC (ADA) at a news conference during HDA Truck Pride’s annual meeting at the JW Marriott Hill Country in San Antonio. Both HDA Truck Pride and AAPA are the largest independent program groups in their respective market segments.
The new entity will be equally owned by HDA Truck Pride and AAPA and was created to stimulate the growth and success of both groups.
“For years, the aftermarket practitioners have arbitrarily partitioned their businesses by vehicle types or market segments, such as truck parts or collision parts or performance parts,” said Reimondo. “While that may have made sense in the past, both John and I propose that updating business practices and introducing technology to look holistically at the parts distribution business makes sense as we move toward the future.”
Washbish agreed, “Increasingly, we see both national accounts and fleets that are looking to consolidate their sourcing and seeking suppliers that can connect with them electronically. The combined resources of AAPA and HDA Truck Pride can deliver just that.”
“Our concept was to create an environment where we could expand our mutual footprint to sell more products and services for both groups, with an emphasis on national, regional and fleet accounts,” said Reimondo. “It is a forward-focused strategy based on selling more, not just buying better.”
The two executives outlined some of the mutual opportunities they believe exist for the new entity, including:
- National/Regional Accounts ‐For those accounts who require coverage for a wide range of automotive and heavy-duty or off‐highway parts, ADA will match and encourage distributors from both groups to collaborate and provide the coverage and service the customers require.
- Cross Purchases ‐Initially, each member of AAPA and HDA Truck Pride would be encouraged to purchase “non‐stocking” parts from one another to enhance their individual efficiency and profitability.
- Group Warehouses – Approved member distributors will be given the opportunity to purchase from the other member’s group warehouse.
- Technology ‐Participating group members will collaborate on common information technology platforms and the opportunity to share mutual data and support. Significant efforts will focus on providing mutual customers with the ability to order, report and invoice purchases from any and all members.
- Vendor Relations – ADA will work to improve communications, reporting, data sharing and electronic connections with all vendors.
- International Business Expansion – ADA will assist both organizations in growing their affiliations with expanding their global footprint.
Both Reimondo and Washbish confirmed that the formation of the ADA received unanimous support from the respective boards of directors of both organizations. They remarked that this positions its membership to compete given the changing face of distribution, enabling technologies and to guarantee success in the future.