Today’s AMN Executive Interview features Bastian Mueller, member of the Executive Board of German WD Wessels+Mueller AG. Mueller brings us up to speed on the integration of San Francisco’s SSF Imported Parts into its business. Wessells+Mueller, along with import industry veteran Thomas Beer, acquired the business this past September.
It’s been roughly 6 months since German WD Wessels+Mueller (WM) AG and co-investor Thomas Beer acquired SSF Imported Auto Parts, based in South San Francisco. Can you update us on the transition and the changes that have taken place?
Since the transition we have ended a very successful shortened fiscal year 2012. SSF has developed very well and it becomes ever more obvious that the SSF team, the new management and WM click very well. It was this dedication to the niche market of European parts and the strong focus on quality parts and customer focus that attracted us to SSF in the first place. So, this acquisition is about enhancement of the traditional strengths of the company, which are the core elements also to our philosophy at WM.
With Thomas [Beer] we have the ideal partner and CEO who has invaluable experience in our market segment and is uniquely customer focused. Under his leadership SSF will continue to be a true import specialist, service driven and dedicated to OE quality.
What is the benefit and appeal for a German WD to invest in such a niche WD in a totally different market?
While the markets are different, SSF and WM have a lot of similarities: We focus on the same car lines, our programs are both build upon OE suppliers and quality and we are both one of the best in our market segment. The customer needs and thinking are not much different between the U.S. and Germany. Furthermore, we are eager to invest in market opportunities that we can evaluate for ourselves. Here, we feel much more "at home" in the U.S. car parts market than in many of the markets in Europe.
Wessels+Mueller is one of the top three WDs in Germany. What strengths do you feel your business brings to SSF?
First of all, SSF has a very strong team and leadership to bring their own strength to the market. With that being said, WM can support the team with our operational expertise, our relationships and our know-how about product groups and services that SSF does not yet offer. Generally speaking, WM is not only a parts supplier but to some extent a full-service provider to our customers. This includes training, marketing support and business consulting, along with the day-to-day parts sales and logistics. Together, we are evaluating if SSF over time can grow into a similar role.
On the reverse we are very impressed with the philosophy and structure of SSF’s cataloging and we indeed can learn from that approach at WM.
Having now been involved in warehouse distribution in both Germany and the U.S., what are the biggest differences between these two markets in your opinion?
It may sound trivial but geography determines a completely different set of challenges. We can reach each of our 100 warehouse locations overnight from our central DC and our product and service specialists are never more than a few hours away from any of our customers. The logistical challenges are more focused on frequency rather than distance. At SSF, a major portion of our business is airfreight and the customer base is spread around the entire country.
Another difference is our focus in Germany on the entire vehicle parc, which would more closely compare with the traditional WD in the U.S., whereas SSF is focused on the European vehicle makes. This gives SSF the advantage to bring the most tailored service to the customers.
What are your expectations for the European replacement parts segment in the U.S. over the next several years?
We expect steady growth in the European replacement parts segment. The German car manufacturers are well-positioned to gain further market share and the increasing complexity of the vehicles will drive business toward the import specialist the customer we pay all our attention to.
What are your plans for SSF in 2013 and beyond?
Thomas and his team are focusing entirely on continuing to improve our programs and services, adjusting our organization to the evolving needs of our customers. [It’s] A process that I will be more than happy to go along with. SSF wants to be the most customer-focused and customer-driven company in our market segment. That will keep us busy in 2013 and beyond!