AC Delco Forms New Distributor Group
Pep Boys to Close Stores, Cut Jobs
NAPA Joins Internet Auto Dealers Marketing Association

AC/DELCO FORMS NEW DISTRIBUTOR GROUP

ACDelco has announced that they are forming a new alliance of distributors for the global marketplace. The new distribution group will be called the ACDelco Dedicated Distribution Group (DDG).

"We believe our DDG structure will be the standard for the next millennium," said Scott Mackie, general director of ACDelco International and New Ventures for GM Service Parts Operations.

The distribution group will include "operating standards for the development, procurement, distribution, marketing and sale of premium automotive parts. Our program benefits will exceed those of existing distribution groups because we will support our global distribution stakeholders by providing strategic direction, marketing intelligence, and professional brand management expertise."

In the program, ACDelco will assist DDG members to analyze their businesses and develop "comprehensive business plans and share best practices." ACDelco also will provide the distributors with recommended ordering and stocking levels based on their market potential research, "enabling them to operate more efficiently and maximize their profit potential."

ACDelco will offer distributor supply chain linkage for bulletins, cross-referencing, pricing/invoicing, ordering, and parts catalogs through its Electronic Parts Information Center as well as Internet links between the DDG warehouse distributors and independent service centers.

PEP BOYS TO CLOSE STORES, CUT JOBS

Pep Boys has announced that they will restructure their operations -- including closing stores and eliminating jobs.

According to the auto parts retailer, the company will close 38 of their "unprofitable" Pep Boys stores. The company will also eliminate approximately 1,500 jobs through the closures and restructuring.

Pep Boys has also closed two of its distribution centers in an effort to cut costs.

NAPA JOINS INTERNET AUTO DEALERS MARKETING ASSOCIATION

The Internet Auto Dealers Marketing Association (IADMA) has signed an exclusive partnership with the National Automotive Parts Association (NAPA) to supply its national network of more than 2,800 automobile dealers with daily auto parts fulfillment through NAPA's network of warehouses and stores.

With NAPA's recent entrance into the OEM market with its replacement parts program, the companies felt the timing was ideal to team up.

"NAPA has developed a program to assist OE dealers with parts procurement," said NAPA's Major Accounts Sales Manager, Bruce Pforsich. "Since the IADMA provides access to more than 2,800 dealers representing many different brands, we believe that our relationship with the IADMA presents an excellent opportunity for NAPA to move forward with this program."

According to Director of Business Development for the IADMA, Jeff Sandt, IADMA, member dealers will be able to access NAPA's inventory of automotive parts, accessories, tools and equipment through its electronic procurement system or, if the dealers prefer, use traditional procurement services via a salesperson or the telephone.

IADMA members will be able to sign up for NAPA's services through the Member Service Provider section of the IADMA's Web site.

Originally published in the December 2000/January 2001 issue of Automotive Booster Magazine.
Copyright 2000 by KAL Publications Inc.