AIA Update: Suppliers Council Bracing for Change

The chairman of the Automotive Industries Association of Canada’s Suppliers Council believes that the Canadian aftermarket will remain healthy during the next few years, but the Suppliers Council, along with other councils and committees, will have to remain vigilant.

Robert Tribe is the national sales manager of NGK Spark Plugs Canada Limited and the volunteer chair of the AIA Suppliers Council. Like the association overall, the Suppliers Council is working toward improving the image of the industry. That means getting young people involved both in the industry itself and in the supplier community.

“We are working on a number of initiatives to increase participation in some shows and industry events such as Industry Week in Las Vegas,” says Tribe. “At AAPEX 2003 we are bringing together an international committee of suppliers in a round-table type forum where we are bringing a number of Canadian manufacturer suppliers to the table to bring some of their wares to U.S. and Mexican vendors. We will be able to share ideas on manufacturing and make contacts in the industry.”

AAPEX 2003 will be held at the Sands Expo Centre in Las Vegas, and the theme is “Do a World of Business at AAPEX.”

The Suppliers Council is also expected to play a more aggressive role in addressing students at Georgian College and other colleges from the supplier perspective, bringing young people into the industry, and introducing them to other facets of the industry from the channelled distribution side.

“Other things we are talking about are professionalism and making the industry a lot more efficient and user friendly. We are working closely with the Canadian Professional Sales Association to help to bring training courses to the supplier community on sales and sales professionalism.”

Tribe, who served on the Suppliers Council for three years prior to becoming chair, notes there have been major changes in the aftermarket concerning the relationship among its various segments.

“With the exception of remanufacturers, more Canadian companies are somewhat directed from the U.S. side as far as management and supply are concerned. In Canada you are seeing the changing of the guard of directional marketing management as coming more from the U.S. side and also from supply.

“If a warehouse or jobber were to order those products, they are actually being shipped from the United States and not from a local warehouse. That is affecting some of the issues on buying, availability, and turnaround time. The other thing is obviously the consolidation of vendors. Sometimes from an economics of scale perspective it is positive. However, competition breeds a healthy market and sometimes when there isn’t enough competition it creates bad blood in the market. Everything is sourced on price.

“There is a lot happening in the industry right now. A lot of things are becoming more streamlined, but one of the main dangers is that there is less choice.”

Tribe’s advice to WDs and jobbers, because the market is changing and companies are changing, is to make sure you keep informed and on top of things. Don’t take for granted who you are buying your parts from today, because there may be significant changes in the company you are buying from. “Definitely keep your options open,” he says.

Tribe cautions everyone to stay informed to protect the ultimate success of their companies, suppliers, WDs, jobbers, and all the other players in the automotive aftermarket.

He says that on the supplier’s side they are looking to develop better relations with vendors and to provide more programs for jobbers.

Over the years, lack of detailing by suppliers has been a major complaint from jobbers. And while Tribe says there is a need for detailing, he reminds everyone that there is also a cost to it. Jobbers should realize that when they ask for more and more discounts, those discounts come out of profit, and may result in fewer people to provide that detailing service. He also reminds everyone that as acquisitions continue to take place, some sales forces are now selling multiple lines, where at one time they were only responsible for one or two lines.

Still, suppliers see many positives for the Canadian aftermarket industry–the future looks good.