Canadian supplier of suspension, steering, and driveline parts recognized in the "Manufacturing" category for excellence at the Global Automotive Aftermarket Symposium. Award in the "Retail/Distributor" category goes to Performance Warehouse Inc.
Toronto-based Mevotech Inc. is the 2013 winner in the manufacturing category of the Polk Inventory Efficiency Award.
The prestigious award, presented annually during the Global Automotive Aftermarket Symposium (GAAS) in Chicago, recognizes process improvements in supply chain and inventory efficiency.
"We are pleased to receive this prestigious award from Polk," said Mevotech president Ezer Mevorach. “It is a validation to the hard work of our employees.”
He said it is humbling to join previously honoured industry leaders, and serve as a role model for others striving to better their inventory efficiency practices.
Founded in 1982, Mevotech specializes in providing top quality, technology advanced automotive parts, as well as unparalleled service and customer support.
To overcome the challenges of limited warehouse space and maintaining accurate inventory while remaining efficient, Mevotech launched its “EXIST” program, which stands for “Excellence in Inventory Strategy.” The four-stage program managed the entire product lifecycle from control process to engineering through supply chain and ultimately to the customer, reducing inventory levels while maintaining industry leading fill rates.
With a first-to-market product strategy, Mevotech’s EXIST program provided a substantial business and parts business impact. Over an aggressive two-and-half year implementation, the inventory strategy decreased order turn times by nearly 60 percent, increased fill rates by seven percentage points and improved product time to market to nearly three times faster. EXIST also reduced warehouse inventory by 20 percent and increased inventory accuracy by 10 percentage points.
A video outlining the successes brought about by EXIST can be found on YouTube.
The 2013 award in the retailer/distributor category award went to Performance Warehouse Inc.
Family owned and incorporated in 1969, the wholesale establishment was created to enable its three existing retail stores to compete with larger retailers. Today, it has a diverse product mix, 37 company-owned stores, and serves jobbers and retailers of all sizes.
Performance Warehouse works closely with the Aftermarket Auto Parts Alliance, last year’s winner in the Retailer/Distributor category, operating and guiding the evolution of the inventory optimization tool for the buying group.
The inventory optimization tool (IOT) from Performance Warehouse has proved to be a more efficient software package. By modeling sales data, inventory data, vehicles in operation and replacement rate data, the system delivers efficient inventory and stocking decisions for retailers, accurately predicts part failure rates and identifies business opportunities. The addition of Vista data, which are the catalogue look-ups, to the IOT has allowed Performance Warehouse to identify high failure products in vehicles and get them into inventory before it becomes an issue.
The IOT has also empowered the Performance Warehouse sales team, equipping them with an additional tool to take to independent jobbers and showcase inventory updates and availability. Over the last two years, Performance Warehouse has decreased their overall inventory by nearly nine percent and has achieved sales increases of nearly six percent while diversifying their parts availability. The Performance Warehouse team was recognized for its holistic training approach, a training approach focused on ensuring all outlets knew what to do and how to use the new IOT. Performance Warehouse’s independent jobbers also increased their sales 44 percent in product lines updated using the IOT.
"We are grateful to Polk for recognizing Performance Warehouse with the Inventory Efficiency Award," said J.R. Moore, president of Performance Warehouse. "We’ve worked hard as a company to manage our inventory, and keep our jobbers competitive and our stores growing. This award is validation that Performance Warehouse is on the right track."
The Polk Inventory Efficiency Award program, now in its ninth year, was presented by Mark Seng, vice president, aftermarket and commercial vehicle and Polk’s global aftermarket practice leader, and Stephen Polk, chairman, president and CEO of R. L. Polk & Co.
"Inventory efficiency often translates to cost savings and better practices, and both of these organizations have integrated industry-leading inventory management and supply chain practices into their operations, serving as respected benchmarks for others in the automotive aftermarket community," said Seng.
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