Altrom Group - The Canadian Business Journal

Altrom Group
www.altrom.com
CB
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The Altrom Group
CB
AUTOMOTIVE
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AUTOMOTIVE • Altrom Group
The Altrom Group is one of North
America’s leading wholesale distributors of
OEM (original equipment manufacturer)
import car parts and top quality
alternatives. Altrom was founded over 40
years ago and offers the right fit, form and
function for the import aftermarket.
U.S., supported by more than 300 employees.
Altrom began 40 years ago with a vision to
service a gap in the Canadian automotive aftermarket. The previous ownership group recognized a proliferation of VW automobiles in North
America after The Second World War. In order
to service these vehicles, owners had to wait for
the parts to be shipped from Germany. This is
Headquartered in Vancouver, Altrom truly is a
where Altrom stepped in and became the solu-
single source for all import parts with a vast net-
tion to this challenge, importing and warehous-
work of over 300 suppliers and 3 million unique
ing VW vehicle parts, and servicing the growing
catalogue applications. Altrom Group today con-
demand for these products. In 1985, Altrom
sists of a network of over 17 warehouses (over
purchased the Canadian division of Repco
400,000 square feet) across Canada and the
which added an extension to the European of-
MARCH 2013 • The Canadian Business Journal
5
State of the art engineering
State-of-the-art engineering and our extensive OE experience make PEX German
O.E. Parts LLC a premier provider of brake and engine management sensors and
components, chassis hard parts, cables and belt drive technology.
We are committed to providing OE quality materials, quality processes, and
attention to detail in all the aftermarket parts we provide.
With a focus on maintaining wide coverage for European vehicles, we are
dedicated to helping build the long-term success of our customers.
www.pexna.com
fering, and also Asian vehicle makes.
In 2008, Genuine Parts Company
in the market place are the company’s employees and supply partners. “The over 300 em-
(NYSE:GPC) acquired the Altrom Group. This
ployees are truly passionate about our business
investment from GPC has allowed Altrom to con-
model and the automotive aftermarket. Without
tinue to be a leader in the automotive aftermar-
our 300 supply partners it would be difficult to
ket with planned future growth and expansion.
maintain our ‘first to market’ advantage that we
The growth trend around import nameplates
pride ourselves on. We have five product man-
positions Altrom perfectly to provide the quality
agers led by Nigel Bruce, Director of Product
import parts to the automotive aftermarket and
Development, who spend their days researching
gain market share to continue its year-over-year
failure points on each and every import platform
double-digit growth strategy.
to ensure we are servicing the needs of our cus-
According to Dean Medwid, Vice-President
tomers. In addition to the support team in the
and General Manager of the Canadian Opera-
office, we have a dedicated sales team on the
tions, the two main advantages that Altrom has
street that interacts with our 4,700 customers
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AUTOMOTIVE • Altrom Group
Automotive Aftermarket Today
sales of $4.9 billion in 2011. Parts distributors,
The amount an average Canadian spent on
including warehouse distributors such as Altrom,
maintaining or repairing a vehicle in 2011 was
supply wholesalers and auto parts stores. These
$874, with British Columbia at $993 and Alberta
wholesalers in turn supply retail outlets and
at $971, achieving the highest average retail
vehicle companies’ parts to dealerships. This
dollars per vehicle.
segment accounted for $6.1 billion in revenue in
DesRosiers Automotive Consultants has
2011. The entire vehicle aftermarket at the retail
estimated that the total aftermarket retail sales
level totaled $19.4 billion in revenues for 2011
reached $19.4 billion in Canada in 2011. Of the
(including the $4.9 and $6.1 billion mentioned
total, the automotive parts market accounted for
above).
$11.2 billion (57.7 per cent), while the remaining
Import nameplate vehicles have been
$8.2 billion was generated through labour (42.3
gaining share on the Detroit Three over the
per cent). In the $11.2 billion automotive parts
past two decades. In 2007, 64.8 per cent of the
market, parts related to DIFM services generated
vehicles registered in Canada were of the Detroit
$8.3 billion (73.9 per cent) revenues, whereas
Three nameplate. By 2011, this figure decreased
parts from DIY repairs created $2.9 billion (26.1
to 55.4 per cent, and the import nameplates
per cent) in sales volume.
currently account for 44.6 per cent of the
The Canadian vehicle aftermarket supply
Canadian light vehicle registrations. By 2015, it is
chain comprises of three levels that are
forecasted that the Detroit 3 will account for 51.1
sequentially liked to one another through supply
per cent of total light vehicle registrations versus
chain: manufacturers, parts distributors and retail
48.9 per cent for import nameplates according
outlets. Parts manufacturers launch the supply
to the AIA Canada – Automotive Aftermarket
chain with the actual production of the parts.
Demand Study.
Estimates suggest that the manufacturers totaled
MARCH 2013 • The Canadian Business Journal
7
Consider this:
“You’ll probably keep your current vehicle
much longer than your previous one.”
• The average age of a vehicle on the road
today is nearly 11 years old.
• Since 2001, motorists are keeping their
vehicles up to 24 months longer.
Shocks and struts affect tire performance,
stopping distance, and steering response.
ent for the
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Af
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arket
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Experts suggest replacing shocks & struts after
80,000km to maintain designed handling and
control of your vehicle.
ensuring that the vehicle that they are servicing
According to Dave Pawlowski, Director of
is back on the road as quickly as possible,” says
Business Development and Marketing, the main
Medwid.
value behind Altrom remains the same – educa-
The automotive aftermarket is ever chang-
tion. The primary responsibility of the dedicated
ing, with the main challenge to stay informed
Altrom sales team ensures that Altrom custom-
and on top of the changing landscape around
ers are educated in the market changes as well
mergers and acquisitions. “These business
as the products and services that Altrom offers.
developments change the alliances as to where
“These new additions to our products are all too
the OEM parts are sourced for the new ve-
often the solution that our customers have been
hicles rolling off the assembly lines. By keeping
looking for. Education is accomplished through
abreast of these changes, it allows our team of
the interaction with both our street level sales
experts to be first to market with the part that
team as well as parts experts on the phones.
becomes the solution to ongoing street level
If our customer is more comfortable using the
challenges,” says Medwid.
web, Altrom has created a web-based solution
AUTOMOTIVE • Altrom Group
Ignition Technology Diesel Cold-Start Technology Electronics Sensors
BERU.
Innovation built in
BERU ® Trademark of BorgWarner BERU Systems GmbH
8
Engineered to perform –
designed to last.
MEYLE-HD is a benchmark of quality. Our expert
engineers are analyzing OE parts down to their
major weaknesseses and simply reinforce and
improve its constructive design. Starting with
engineering and redesigning new parts up to
the point of production, we are committed to
supply high quality solutions at all times. Proven
by the 4-year warranty on the long lasting
premium MEYLE-HD spare parts.
Check out our wide range of MEYLE products
and MEYLE-HD parts on
Altrom AZ 95x121.indd 1
04.02.13 15:11
called ‘Ask the Expert’ which is an online tool
enabling our customer to ask anything that they
wish about our products or services, linked directly to our product team.”
“Creating both customer and employee
engagement is a priority for Altrom. Both parties need to understand the common goal of the
organization and what success looks like. When
we have exceeded our customers’ expectations
by delivering on the promise outlined in our
mission statement, then we are happy,” says
www.meyle.com
Medwid.
The current trends around import nameplates positions Altrom perfectly to provide the
MARCH 2013 • The Canadian Business Journal
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quality import parts to the automotive aftermar-
as sales people. We are constantly growing and
ket, and to foster the company’s double-digit
searching for ‘A’ players to join our team,” says
growth strategy. In this light Altrom recently
Pawlowski.
expanded its Vancouver facility, outgrowing its
To create new efficiencies, Altrom continu-
35,000 square foot facility and moving to a new
ously introduces new technology solutions that
venue of over 85,000 square feet, with a future
increase operational and sales productivity. The
plan to expand the company’s Toronto ware-
company implemented scan technology in 2012
house facility to a similar size in late 2013 or
to ensure that customers receive the parts they
early 2014.
ordered on time. “We have also connected the
“Our main growth strategy for 2013 is gain-
customer service loop by adding success met-
ing market share and ensuring that the markets
rics to our delivery cycles. These cycles are initi-
that we have already gained a presence in are
ated automatically when customers order their
further penetrated with increased service levels
product, whether they order over the phone or
through both additional delivery fleets as well
online. From the point of initiation, the order
10
AUTOMOTIVE • Altrom Group
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MARCH 2013 • The Canadian Business Journal
11
Mission Statement:
Altrom will provide high quality, branded import automotive parts and expertise
to the automotive aftermarket at the right price. Our knowledgeable team will
provide value by being a solution provider for our customers.
is tracked online, picked up and checked by
gram’s merit in every organization. “By setting
scan equipment, and loaded into a GPS tracked
and openly communicating your quarterly objec-
delivery fleet to ensure that if the customer calls
tives and key results, you ensure that you have
inquiring about their part, we can provide an
employee engagement towards the common
ETA within minutes,” says Pawlowski.
corporate goal. As a medium-size enterprise,
Altrom also recently implemented Sales-
we are looking to drive greater business perfor-
force.com solutions, allowing its sales team to
mance in our people. Each and every employee
track recent purchases and/or customer inter-
will employ the OKR strategy in their day which
action with other company stakeholders, such
translates to better customer service aligning
as the Call Centre. The software also gives Al-
to our corporate values of service excellence,”
trom the opportunity to provide further value to
says Medwid. CB
the customer by placing orders on the spot, or
training the customers with preloaded product
information. “This addition of technology attracts top young talent as these solutions have
become an expectation,” says Pawlowski.
To measure Altrom’s success, the company
recently deployed the OKR (Objectives and
Key Results) goal setting strategy. Originally
launched at Google, the company sees the pro-
www.altrom.com
GEORGE MEDIA
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AS SEEN IN THE MARCH 2013 ISSUE OF THE CANADIAN BUSINESS JOURNAL
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