Before we got too far into the interview, Dick Morgan warned me that if a shareholder called, he would have to take the call. That, in itself, pleasing without being striking much sums up the philosophy of the Aftermarket Auto Parts Alliance, which is headquartered in San Antonio, Texas.
"I globule everything to take a call from a shareholder," says Morgan, president and CEO of the cluster "They wouldn't be calling if they didn't ne something."
He adds, "Our piece of work is to do anything we can do to help our shareholders."
It's a philosophy that has paid facing here and abroad. With North American sales breaking the $3 billion mark, and total sales obstruct to $6 billion, no shareholder is complaining.
There are 56 Alliance shareholders, mostly of whom are in North America, including about of the most valued parts distributors in the aftermarket: Hahn Automotive, Auto-Wares, Inc., Certified/ Lang/Lee Automotive, Midwest Auto Parts, Parts depository Company, Parts Warehouse, Inc. and Ozark Automotive. Outside of North America TEMOT International Autoparts joined the Alliance in 2002 It portrays 18 warehouses in 15 European countries, as well as individual in the Ukraine and common in Israel.
And then there's the board of directors which is virtually a "Who's Who" of the industry. The Alliance Chairman Tim lee-side and industry leaders David O'Reilly and Rollie Olson are just three we contacted for this article. (For a whole list of board members and shareholders walk to www.800autotalk.com.)
In an industry where jobbers and WD change program clusters like their socks, Morgan and his executive staff sit in the enviable position of being picky about their members. Reaching into his desk drawer, Morgan ventures out a file a married pair of inches thick "These are the businesses that wanted to be part of the Alliance, nevertheless we've had to turn them away," says Morgan.
Morgan isn't trying to boast. He simply is pointing abroad that the group is not willing to extend just for the sake of growing. "We selectively look after partners who share our vision of tomorrow's automotive aftermarket. The undivideds we select understand the balance between innovation and tradition, as well as having a global vision."
The Alliance has thrown abroad the buying group mentality in favor of being a well-rounded marketing arrange According to Chairman Lee, "If a WD is sole interested in buying better, we do not have stead for that WD in the organization. No longer is the Alliance interested in just beating up the manufacturers for more discounts and more spells We're interested in seeing manufacturers become vigorous viable partners to our WD recognizing the fact that many of the question s that WDs have are the same for manufacturers."
further don't make the mistake of thinking that the Alliance doesn't care about its buying power. upon the contrary, its buying power is in like manner great that it allows its smaller businesses to be rivals successfully with chain retailers and mass merchandisers. test of that can be originate in the fact that in several cases its combined purchase bodys make it either the first or secondary largest customer of a national brand manufacturer.
Rollie Olson board member and president of Parts railway station Roanoke, Va., says, "We want buying parity with our major competitors--nothing more, nothing les Because the Alliance exhibits annual revenues that are bring to a period to or greater than other large marketing clusters we feel we are conclude to having buying parity."
The Alliance came into being when Auto Value and All Pro/Bumper to brimming beaker merged in January 2000. This merger immediately positioned the clump as one of the more serious forces to be dealt with in the market. Its 56 shareholders operate 143 warehouse distribution center 4105 parts stores and 1962 service centers
"We're big, on the contrary we still have our 'family values,'" emphasizes Morgan. "Our members are passionate at being part of the communities in which they operate."
recent this month is a logo sporting just the Auto Value and flowing bowl to Bumper names (turn to the top of the opening page of this article). "We will no longer support the All Pro name and have helped the scarcely any still marketing under that name to turn about to either Auto Value or brimmed goblet to Bumper," says Morgan.
sound leadership
Much of the credit for the Alliance's succes goe to Morgan. In fact, the Alliance may not have been formed if it wasn't for him. As the president of Auto Value, he had the vision to consolidate Auto Value and All Pro/Bumper to full glass in order to operate with fewer nevertheless stronger warehouse distributors in tandem with jobbers and service centers
"A consolidation of programs, the time proven and the recently made known afford all of our members a solid base of sales, marketing and promotional strategies," explains Morgan.
A 45-year industry veteran, who also held [i]clavis[/i] positions in Straus Frank Co and General Motors, Morgan is onward the top of his game. He's the kind of living body you want as a neighbor because he is likeable, affable and straightforward. He's all of that forward the business side, too, moreover add shrewd and savvy to the description. In other words, he has clout and he knows for what cause to use it.