VIDEO FEATURE: Attendees of ACDelco eAction Forum Make E-Commerce a Top Priority

Attendees of ACDelco’s recent eAction Forum in Phoenix, Ariz., heard the organization’s vision for e-business, one that strives for increased efficiency and a significant amount of inventory turns. E-commerce was on the mind of those attending the eAction Forum, held May 12-14, and they have good reason to be interested: This month, ACDelco hit $1 billion in sales that have originated from the organization’s e-commerce systems since they were started in earnest in 2003. While in Phoenix, Counterman Editor Mark Phillips had a chance to speak to a few ACDelco execs and eAction Forum attendees about the event and why e-commerce is critical to success in the aftermarket today.

By Mark Phillips

PHOENIX — Attendees of ACDelco’s recent eAction Forum in Phoenix, Ariz., heard the organization’s vision for e-business, one that strives for increased efficiency and a significant amount of inventory turns.

“Industry research shows when you hook up a customer electronically, generally you have a 7 percent increase in sales,” said Steve Sigg, e-business manager. “Instead of the typical three to four phone calls to order a part, they just do it electronically, which is much more efficient. That’s a distinctive competitive advantage to you.”

E-commerce was on the minds of those attending the eAction Forum, held May 12-14, and they have good reason to be interested: This month, ACDelco hit $1 billion in sales that have originated from the organization’s e-commerce systems since they were started in earnest in 2003.

While in Phoenix, Counterman Editor Mark Phillips had a chance to speak to a few ACDelco execs and eAction Forum attendees about the event and why e-commerce is critical to success in the aftermarket today. To check out the live video interviews, simply click on the arrow icon below.

Jeff Spitzer, director of services and business support for ACDelco, said the phone is being supplanted by the Internet as the preferred method of ordering. “This has been a real game-changer in our industry about how our customers order parts,” Spitzer said. “We do about $1,500 every minute [in e-commerce business].”

Sigg said that in general, each visitor to ACDelco.com equates to $1 in sales. “So if you have 2 million visitors, that should translate into $2 million in sales,” Sigg said. But getting consumers and other buyers of auto parts to use the Internet to perform transactions they’d normally do over the phone means a learning curve. Knowing this, ACDelco has partnered with eBay Motors for a pilot program intended to sell parts and service online. eBay was a natural partner for ACDelco because its customers are typically long-term computer users who are not only familiar with the eBay method of doing business, but are comfortable with purchasing goods and services online.

ACDelco stakeholders already have embraced the e-business goals and objectives. “E-Commerce has really changed our business in a really big way,” said Lynnae Redenius, of Combined Locks, Wis.-based U.S. AutoForce, which operates 31 warehouses that serve independent auto service facilities and auto dealers. “It’s been very, very positive for us. We have a lot of our sales transactions coming through on the Web. There are just a lot of really neat tools being offered by ACDelco that are going to help us strive farther with e-business in the future. When ACDelco came out with these solutions, we were there. We embraced them and we really have been partners with them through all the years they’ve done this.”

Rob Chesney, vice president of eBay Motors, believes the automotive aftermarket is in an advantageous position. “I feel it’s an industry that’s at the very beginning of e-commerce,” Chesney said. “It’s poised for incredible growth over the next five years and we’re at the very beginning of it. It’s like watching what happened with media on the Internet. You’re looking at a movie that’s already playing and you’re going to be at the very beginning of it. One of the frontiers emerging is paring the buying of parts and services.”

ACDelco members also heard they should take a cue from a popular dot-com model of selling products in order to bolster sales of aftermarket auto parts. The idea is, “those who purchased this widget also purchased this or that,” said Phil Akers, an ACDelco e-commerce group member. “What we’re doing is looking at related parts,” Akers said. “If someone bought an A/C compressor, we want to know what else they bought with it and how often. It’s not necessarily as easy as it sounds, but we’re getting better at it.”

Through its own research, ACDelco discovered patterns that arose during parts-buying. For example, 6.43 percent of the time, those who buy an alternator also buys a belt, Akers said. “The results of the related parts discovery process might lead to inventory adjustments,” Akers said.

David Orlaska, of Cal-State Auto Parts, said he was excited to incorporate the practices learned at the conference into his sales. “You get an opportunity to discuss best practices with people who have been using the Internet and e-commerce,” Orlaska said. “[E-commerce] is so easy. It makes it easier for our customers, our own people. It’s not the future. It’s now.”