Q&A with The Group CEO Larry Pavey

AKRON (Aug. 19, 2016) —Tire Business recently submitted questions to Larry Pavey, CEO of Automotive Parts Services Group (The Group), which operates both the Federated Auto Parts and National Pronto Association programs. The following is an edited version of that Q&A interview:

Last year after Federated Auto Parts and National Pronto Association merged efforts, the company announced some key initiatives to boost value for program members. How would you rate the success of these initiatives to date?

 “The reason for the collaboration was to deliver greater value to all constituents, members, suppliers and customers. We have worked hard to focus on that directive and there has been significant progress made in a number of areas.

“We have worked closely with national account customers, expanding existing relationships and receiving many new approvals. We bring to them the benefit of having a large number of locations in most markets and the ability to provide consolidated data and marketing, while addressing unique local needs and requirements....

“We are also working on improved supplier relationships focused on growth and mutual success. This effort involves sharing strategies and information designed to benefit all and identify growth opportunities.

“Because we have leveraged the strengths of both Pronto and Federated in a number of areas and have eliminated redundant activity, we have been able to increase overall value at a lower cost…. Our goal is to coordinate their efforts and activities for the benefit of all. Creating new tools and opportunities that benefit suppliers, members and customers is a lot of work but is definitely enjoyable and makes us enthusiastic about the future.

“Specifically, both Pronto and Federated agreed to make the ‘MYAutoAware' telematics program available to their automotive service and fleet customers.”

Why is telematics such an important topic in the industry lately, and how does this program benefit your members?

“Telematics is really the beginning of connectivity between the vehicle owner and repair outlet, so we are working hard to make sure that our members and their customers have the connectivity tools to compete.

“Today that means an aftermarket telematics program that provides benefits with regard to consumer vehicles and fleets. We have been able to develop such a program that continues to evolve and are working together to better understand its implementation and the potential use of connectivity tools going forward.

“Communicating vehicle service needs, estimates and information to all participants requires a comprehensive understanding of how to use these powerful tools to execute a connected car strategy. Our telematics program is a foundation that we will continue to build upon as we expect vehicle connectivity to continue to grow substantially in the future.”

Training has been an important issue in auto service, and another initiative you announced last year was The Group Training Academy. What exactly is the academy, and how does it work?

“It is a joint effort by Federated and Pronto to provide a 24/7 portal for all training materials, courses, videos and webinars. The academy gives our members valuable business and technical training tools to help train their own staff as well as service provider customers.

“It gives our suppliers a place to make training and information available just for our members, stores and shops, allows for a learning program to be established for each, with a mechanism for monitoring progress and completion — literally a one-stop shop for all training needs.”

How does your training program differ from some of the other ones already available in the industry?

“It offers a wide variety of courses, videos and webinars — from business and sales training to technical and diagnostic instruction.... It is designed to accommodate suppliers' offerings; the curriculum can be flexible and tailored to individual needs. Certificates of completion are available for all participants passing an examination.

“The Group Training Academy portal is flexible and can accommodate many types of learning models and can be expanded and enhanced as needed. We are dedicated to making as much information and instruction as possible available and have even discussed branding our site for some of our larger customers.

“In addition, we are collaborating with our partners in Europe to share experiences and resources so we can improve processes and methods in the future.... Training and information have been the two most important areas of collaboration.”

Now that the program has been up and running for a year, has your company learned anything about member training habits that might prompt some future changes, either in delivery or course topics?

“We have met with shop owners and technicians from around the country and have learned that there is no right way or one-size-fits-all when it comes to training.

“Everyone learns differently and every technician and shop owner has their own goals and requirements. Therefore, our approach has been to maximize flexibility and provide as much content as possible that can be utilized how and when each individual sees fit. We have heard often that the ideal time for learning may not always be in the evening after a long day at work. This reinforced our mission of making The Group Training Academy available 24/7 and allowing each person to use it at their own speed and learning process.

“This is an industry where individuals are constantly working to improve their skills, so if we can provide educational resources for our members and customers to learn in their own way on their own schedule, that is bound to be beneficial.”

What kind of improvements have you made in the area of inventory management and forecasting?

“As William Edwards Deming, an American engineer, statistician, professor, author, lecturer and management consultant, said, ‘Without data you are just another person with an opinion.' That's why we have been laser-focused on expanding use of data.

“This means improving the quality and quantity of data and its deployment. Because we have seen dramatic increases in the use of internal tools and processes for forecasting and inventory management, we are working closer with supplier partners on sharing data and evaluating on-hand and excess inventory information to assist in production planning.

“With today's diverse vehicle population in both models and years, it has become a very challenging time for managing inventory and achieving a high overall fill rate.”

What are other ways Pronto and Federated have improved benefits for both programs' members by joining forces, and is there anything new they can look forward to?

“We believe that collaboration is a key to future success, and the joint relationship between Federated and Pronto is an important step in that process. The size and scope of The Group and the combined resources available are very beneficial to the membership.

“Working together, exchanging ideas and experiences, developing more robust processes and systems, increasing communications with supplier partners, working closer with large customers, and identifying future challenges and opportunities are all major advantages. We know that ultimately the key to success is exceeding our customers' expectations. As those expectations evolve and become more interconnected, collaboration becomes more important so we can identify areas where we can create the most value.

“The key is, and always has been, working together.”