Getting Onboard With Technology

At times it seems as if the automotive aftermarket is irrevocably branded as a late-maybe-never adopter of technology. This may be changing.

New approaches to the special demands of the jobber seem to be flourishing now.

“One is the Internet ordering process,” says Bob Worts, sales manager for Carrus Technologies. Worts says that, using Wrenchead’s Nexpart utility, customers of the company’s jobber system have been adopting the technology in increasing numbers. The company’s system, which is PC-based, also represents a change of pace for many in the aftermarket who have grown up in the mini/mainframe world, but not so much for those younger members of the aftermarket who are used to the Windows world.

But it is the growth in Internet usage that has earned the most notice lately.

Jerry Fugina, president of Rinax Computer Systems, has seen the rise of Internet connectivity between jobbers and their trade customers (the company has also integrated the Wrenchead Nexpart module into its system).

“We’ve integrated with that online ordering tool so that our jobbers can connect their installers over the Internet. They can do stock checks, get quotes and whatever 24/7.

“It has really taken off. In the last six months that we have been rolling it out, it is starting to really get legs out there. Our goal for our customers is to do as much as 40% of their business online.”

However, that’s no easy task.

“To do that you have to get your people out on the street and get your customers to start using it.”

One individual who has done just that is John Brewer of Brewer’s Auto Parts, with stores in Cambridge, Brantford, and Kitchener, Ont.

A self-described devotee of the Activant approach, he focuses all his technology decisions on helping to build the trade business. “We’re a pure wholesaler; we don’t do any retail whatsoever,” he says, noting that his delivery trucks are unmarked, and there isn’t even a sign on the buildings they are in. His approach is multi-faceted; improving the efficiency and accuracy of ordering and order picking, invoicing, and customer communications are all on the agenda. He is currently upgrading the delivery and installer programs.

“We are fully barcoded and we currently receive everything barcoded.” Control systems are also in place to ensure the right parts go out.

“You can do everything right, but if you send a [wrongly picked] part out, you have wasted everybody’s time, and most importantly you have a dissatisfied customer. [The system] is hopefully going to cure delivery errors.”

He also says that he is in the process of putting the Activant delivery program in place, which will provide real-time tracking of deliveries and provide timely invoicing.

At the core of the system is a handheld PDA that delivery drivers take with them.

“It’s wireless, so that when a guy leaves the building the computer will record when the order was created, when it was picked, and when it was dispatched.”

The PDA-type device also captures the signature of the customer. That little electronic image is helpful when it comes to invoicing time, avoiding any uncertainty about if or when a part arrived.

“The third part of the project is called document imaging. That is where we have a separate server that captures document images. It will capture anything created by the computer–invoices, pick tickets, receiving.”

Electronic images are also captured of receiving documents, packing slips, accounts payable invoices, cheques, etc.

“We’re certainly moving toward a [paperless] operation. With three branches you can accumulate quite a lot of paper.”

With a background as a chartered accountant, Brewer has grown accustomed to running regular reports. Even so, the prospect of eliminating the dozens of pages of reports generated each day–pages that are reviewed for only a few minutes–excites him.

“We run day-end reports on paper. We won’t have to do that anymore; we can just pull them up on the screen. We must get about 25 to 30 pieces of paper spit out. We check about five numbers then we file it.”

It all adds up, but Brewer’s view goes beyond just the accounting aspect. Brewer sees it as part of an integrated total business system.

Eric Knogler, owner of Sutherland Automotive in Saskatoon, Sask., is by no means standing on the sidelines of the technology age, but he does draw the line at barcoding.

“One thing that we don’t have on our system yet is barcoding. I would love barcoding, but the distribution system isn’t there yet. It is something I would like. If that ever came to pass that would be a great thing, but to me partial doesn’t do it. I’m either on it or I’m not.”

One thing that he is committed to is the use of the Internet, both through his Nexpart-equipped Rinax system and the ACDelco WIP program. One of the keys in making these systems work well, he says, is the Windows-style screens that younger parts people are used to seeing. He also values the ability to price by gross margin rather than markup or markdown, and many other automated functions such as min/max controls for inventory quantity on hand. He also values the ability to easily produce reports that keep him informed, but don’t tax his time to either produce or review.

“Full reporting is very important to me,” says Knogler. “As [industry consultant] Bob Greenwood says, ‘If you can’t measure it, you can’t manage it.’”

That cuts to some of the key realizations driving change in the aftermarket. One is that there are no one-size-fits-all solutions.

“The fact is that there are a lot of tools that some may like, but others may not find as useful,” says Carrus’ Bob Worts. “A label program, for example, is a useful piece for a business in the retail market, less so if you’re not.”

Another fact is that information is growing in importance.

“There is no question that historically jobbers have had huge human resource investment in their counterpeople. Traditionally we were people-invested. Over a period of time we will become technology-invested.”

It is not that Brewer believes people are unimportant; it is just that he sees technology as a tool to use valuable staff more efficiently.

“As the market gets older, I think we are able to get a good mixture of technology and people. To me the truly exciting part about this business is the new tools. It is really exciting stuff.

“The bottom line on it is that it’s not the future, it’s the now.”