T HE PART S AUT HORIT Y E ST . 1973 ME MA PRE SE NT AT - - PowerPoint PPT Presentation

T HE PART S AUT HORIT Y E ST . 1973

ME MA PRE SE NT AT ION SE PT E MBE R 22, 2016

PRE SE NT E D BY RANDY BUL L E R, PRE SIDE NT / CE O

COMPANY OVE RVIE W

1980 1990 2000 2004 2010 2016

COMPANY HI ST ORY

• Co nve rte d to o ur 1st c o mpute r syste m
• Custo me r ‘ b a t pho ne s’ dire c t to o ur

sa le s c o unte r

• Se pa ra te fo re ig n sto re - ma inly VW, a nd

British

• Pic king up a nd Re c e iving da ily sto c k
• rde rs fro m WD’ s
• Bo ug ht a t Jo b b e r le ss 10 o n mo st line s
• Pa rts Autho rity ha s 2 lo c a tio ns o nly

• Cha ng e is in the a ir!
• Bo ug ht mo st line s dire c tly
• Da wn o f "e o rde ring ”
• I

mpo rt pa rts b e c a me ma instre a m fo r do me stic ma rke t

• Ja pa ne se pa rts inva sio n
• Pa rts Autho rity is no w 4 lo c a tio ns

• Co mpute rize d a nd e xpe rime nting with a ll kinds o f ne w

te c hno lo g y, whic h wa s re stra ine d b y lo a dsta r- tria d- a c tiva nt- e pic o r

• Custo me r c o nne c tivity wa s sha ky a s a uto re pa ir sho ps

we re la te a do pte rs o f c o mpute rs a nd the inte rne t a t b e st- e x. No e ma ils

• Pa rts pro life ra tio n in full swing with g e ne ric b ra nds c o ming

fro nt a nd c e nte r

• I

mpo rt pa rts c o ntinue to c limb

• Pa rts Autho rity is no w 8 lo c a tio ns

• Switc he d fro m pro prie ta ry c lo se d syste m to I

BM re la tio na l da ta b a se o pe n pla tfo rm syste m. T he switc h a llo we d us to a da pt to the e ve r c ha ng ing ne e ds o f the b usine ss o n o ur o wn te rms.

• T

e c hno lo g y ro a db lo c ks a re sc a rc e a nd a nd we a re a b le to c re a te o ur ta g line : “T he a nswe r is Ye s!”

• Our mo st ve rsa tile & fle xib le to o l: the first o rig ina l ho me g ro wn

Pa rts Autho rity intra ne t

• Custo me rs a re still no t e mb ra c ing te c hno lo g y, b ut o c to g e na ria ns

a re !

• We a re no w 10 lo c a tio ns a nd hype r

g ro wth is o n the ho rizo n

• Pe rfo rming o ur o wn a c q uisitio n c o mpute r c ha ng e o ve rs
• Se lf-de ve lo pe d, se lf-o wne d ho me g ro wn so ftwa re in

c o njunc tio n with o ur E RP syste m

• Ab ility to inte g ra te with a ll c usto me rs
• Pa rts Autho rity b e c o me s the g o to

g uy if yo u wa nt o ut

• We a re no w 20 lo c a tio ns

• Hug e te c h de pt a s ma nua l ta sks b e c o me a uto ma te d.
• Dispa tc h, Skype , fa x, e ma il, o ur o wn c a ta lo g ing , e tc .
• Pa rts pro life ra tio n is a fe a ture no w.
• E

vil dua l line situa tio ns a re wo rking fo r us with multiple a ve nue s o f distrib utio n b e side s o ur b re a d a nd b utte r ho t sho t de live ry b usine ss to o ur insta lle rs

• Jo b b e rs, fle e ts, impo rt spe c ia lists, na tio na l a c c o unts,

inte rne t fulfillme nt, e tc .

• We a re no w 85 lo c a tio ns a c ro ss

6 sta te s a nd still g ro wing !

PART S AUT HORIT Y ACQUISIT ION HIST ORY

2007

4 Sto re s

• Que e ns, NY

Austin Auto mo tive

2009

2 Sto re s

• DC, MD

So uthe rn Distrib uto rs

2010

3 Sto re s

• DC, MD

E a rl’ s Auto Pa rts

• MD

Bra ke s, E tc .

2011

4 Sto re s

• MD

Olympic Auto Pa rts

2012

4 Sto re s

• AZ

Pro Pa rts Sc o ttsda le

2013

22 Sto re s

• NJ
• Mr. Ba rg a in
• NY, NJ, L

I

Wo o db ury

• AZ

BAP

• L

I

Swift

2014

10 Sto re s

• L

I

Ca stle Auto Pa rts Pa rts Wo rld

• GA

Jo hnso n I ndustrie s

2015

1 Sto re

• L

I

Ontime

2016

13 Sto re s

• Yonke rs, NY

Mie le Auto Pa rts

• Ca lifornia

Me tro Auto Pa rts

Pa rts Autho rity ha s g ro wn prima rily thro ug h a c q uisitio ns o ve r the la st 10 ye a rs. Additio na lly, Pa rts Autho rity ha s g ro wn b y

• pe ning g re e nfie ld sto re s

to e xpa nd c o ve ra g e in a ll

• f o ur re g io ns.

PART S AUT HORIT Y GROWT H HIST ORY

PART S AUT HORIT Y L OCAT IONS T ODAY

Ne w Yo rk Ne w Je rse y Wa shing to n DC Ma ryla nd Arizo na Ge o rg ia Ca lifo rnia

T HE JORDAN COMPANY

“T he Jo rda n Co mpa ny is a priva te e q uity firm tha t spe c ia lize s in b uying a nd b uilding c o mpa nie s, mo st o fte n in pa rtne rship with the e xisting o wne rs a nd ma na g e me nt te a ms o f tho se c o mpa nie s. Our tra nsa c tio ns pro vide liq uidity fo r o wne rs, ra ise c a pita l fo r c o rpo ra te g ro wth a nd c re a te sig nific a nt e q uity

• ppo rtunitie s fo r ke y ma na g e me nt. We a re lo ng -te rm inve sto rs

who se e k to b uild va lue o ve r time .”

• T

he q uo te a b o ve is dire c tly fro m Jo rda n’ s we b site .

• T

he de a l wa s c o nsumma te d o n June 30th o f this ye a r.

• Allo we d c o mpa ny to c o ntinue to g ro w a t a c c e le ra te d ra te with mo re

re so urc e s while re ta ining a ll ma na g e me nt a nd c urre nt e mplo ye e s.

ACCOUNT S PAYABL E PROCE SSING

• E

a c h sta te me nt ne e ds to sig ne d o ff b y sta te me nt pre pa re r

• E

a c h sta te me nt ne e ds to b e sig ne d o ff b y sta te me nt supe rviso r (this me a ns yo u a re sure a t tha t time o r yo u a sk ra ndy until yo u a re sure o n pro c e dure )

• I

f the re is a pric ing issue ( whic h is c o mmo n) the n pric ing is no tifie d imme dia te ly a nd re so lutio n must o c c ur. Ple a se no te tha t “pric ing ha s b e e n fixe d” o n sta te me nt

• Ma ke sure tha t sho rt fo rms a re fille d o ut!!! Whe the r do lla rs o r units
• All c re dits a nd re b a te s ( e spe c ia lly la rg e o ne s must b e sc rutinize d)
• Any la rg e c re dits sho uld b e pla c e d a t to p o f sta te me nt
• All da ting sho uld c o me thro ug h the sa me wa y—sa me te mpla te (

se e Sa mmy)

• Ma ke sure yo u g e t no n c o mpute rize d sta te me nts in e xc e l with

po ’ s!!!!

• Sc rutinize c ha ng e o ve rs!!!!
• Ma ke sure to se e b litz whe n ha ving run ta pe s to jib e with po ’ s
• De a le r pa rts put into sto c k is a no no ( so me time s)
• Put no te s o n the sta te me nts to indic a te tha t yo u so lve d a

pro b le m like a de fe c t g o ing b a c k to a re b uilde r

• Ple a se try to indic a te whic h ve ndo rs a re do ing a g o o d jo b o r

po o r jo b o n the ir b illing

• Re c e ive a ll Mo nthly I

nvo ic e s a nd Mo nthly sta te me nts a nd ma nua lly fig ure o ut whic h invo ic e s ne e d to b e pa id tha t mo nth. We ha ve a ppro x. 50 diff te rms.

• Ma nua lly ke y a ll invo ic e s into the c o mpute r syste m
• Physic a lly ma tc h e ve ry invo ic e a nd e ve ry de ta il line to a

re c e iving Do c ume nt

• Ma nua lly do ub le c he c k I

nvo ic e do lla r a nd to ta l a mo unt a re the sa me .

• Do this fo r 5 invo ic e s o r a tho usa nd

invo ic e s

• Pro c e ss Pa yme nt

T he ma nua l syste m o fte n le d to situa tio ns whe re we wo uld de plo y Spa rb y

• We we re le ft with a c ho ic e . We e ithe r ha d to hire mo re a nd

mo re pe o ple to de a l with the mo unta ins o f pa pe r o r use te c hno lo g y to e a se the pa in.

• We c ho se c o rc e ntric a s a 3rd pa rty middle wa re to

e le c tro nic a lly pro c e ss o ur o rde rs g o ing to o ur supplie rs a nd the invo ic e s c o ming b a c k to us fro m o ur supplie rs.

So me Ve ndo rs a re fully inte g ra te d a nd a ll I nvo ic e s g o thro ug h E DI … Re d indic a te s the y we re po ste d with no re je c t c o de (“00”). T he re a re ma ny re je c tio n c o de s. I n this c a se c o de “32” indic a te s a n invo ic e o utside the pa y pe rio d. Othe r c o de s indic a te o utside the to le ra nc e , pie c e s no t ma tc hing , e tc . Be lo w is a sa mple o f a fully inte g ra te d Ve ndo r a fte r the invo ic e s a re ma tc he d.

T he sc re e nsho t b e lo w sho ws a ma tc h a t the invo ic e le ve l. 289 pie c e s b ille d, 286 pie c e s re c e ive d, $6,247.89 b ille d, $6,387.35 re c e ive d. Pie c e s a nd do lla rs a re within to le ra nc e . Pric ing still ne e ds to b e re vie we d, b ut b ill will b e pro c e sse d a uto ma tic a lly.

T he sc re e nsho t b e lo w sho ws a ma tc h a t the pa rt de ta il le ve l. 97 pie c e s b ille d, 96 pie c e s re c e ive d, $284.00 b ille d, $ 284.00 re c e ive d. Pie c e s a nd do lla rs a re within to le ra nc e . Pie c e s a re o ff b y 1, do lla rs ma tc h pe rfe c tly a nd this invo ic e will b e pro c e sse d a uto ma tic a lly.

Ge ne ra l L e dg e r a llo c a tio n to pro pe r a c c o unts fo r Sto c k Orde rs.

Ge ne ra l L e dg e r a llo c a tio n to pro pe r a c c o unts fo r Dro pShip o r I nte rne t Orde rs. T he b a sic diffe re nc e is fre ig ht c ha rg e s.

E DI I nvo ic e s po ste d in the Ge ne ra l L e dg e r ha ve a so urc e c o de o f E D. We a re po sting a ppro xima te ly 1/ 2 o f a ll o f o ur A/ P invo ic e s thro ug h E DI a uto ma tic a lly.

Custo m in ho use re po rt de ve lo pe d to run a fte r sto c k o rde rs a re po ste d in GL . Re po rt c o mpa re s o ur c o st pe r PO fro m the ve ndo r to the c o st in o ur E RP syste m. I f pric e s diffe r o ur pric ing te a m is no tifie d to e va lua te a nd c o rre c t.

Custo m in ho use re po rt we de ve lo pe d to c o mpa re o ur c o st fro m Ve ndo r to sa le pric e o n c usto me r we dro p shippe d to in o rde r to e nsure we ma de the c o rre c t ma rg in o r wo rse did no t se ll a t a lo ss.

• E

sta b lishing c o nne c tivity b e twe e n Supplie rs a nd Co rc e ntric . PA ha s to a c t a s lia iso n b e twe e n Supplie rs, Co rc e ntric , a nd o ur E RP de ve lo pe rs.

• Co o rdina ting o ur b uye rs to o rde r thro ug h c o rc e ntric .
• Wo rking with o ur E

RP De ve lo pe rs to fine tune the func tio na lity with re spe c t to a llo c a tio n to le dg e r a c c o unts, c lo sing o f PO’ s, a nd va ria nc e to le ra nc e s.

• Bra nc h se tup a nd Supplie r se tup fo r e ve ry b ra nc h se e ms e a sy b ut 80

supplie rs se tup fo r 85 b ra nc he s re sults in a ta b le o f 6800 re c o rds a nd c e rta in line s re q uire multiple re c o rds fo r diffe re nt pa rts o f the line s furthe r inc re a sing the numb e r o f re c o rds tha t ne e ds to b e ma inta ine d

• Pa rts da ta ne e ds to b e “sc rub b e d” b e fo re se nding o rde rs. Spe c ia l

c ha ra c te rs ne e d to b e re mo ve d. No t like the o ld da ys whe n yo u fa x

• r c a ll in a n o rde r a nd the pe rso n who re c e ive s it a t the supplie r ke ys

it in.

ME T RO ACQUISIT ION

Pr

• s

Cons

3 fully c o nve ye re d, sta te o f the a rt wa re ho use s a nd 10 2-ste p lo c a tio ns o n the we st Co a st Busine ss wa s do wn 70% a nd wo uld b e a c ha lle ng e to g e t b a c k. Will Give us CA pre se nc e a nd e nha nc e o ur fulfillme nt pre se nc e . 30% o f the b usine ss we did no t wa nt b a c k. Stro ng re la tio nship with jo b b e rs a nd insta lle rs fo rg e d o ve r 60 ye a rs K e y E mplo ye e s a nd ne rvo us e mplo ye e s ha d a lre a dy sta rte d to le a ve . Ba nkruptc y e na b le s us to g e t in a t a n a ppe a ling pric e po int Do ing b usine ss in Ca lifo rnia is a lwa ys a c ha lle ng e PA ha d va st e xpe rie nc e in a ll 3 c ha nne ls tha t Me tro se rvic e s: 2-ste p, 3-ste p, inte rne t fulfillme nt Afffo rde d PA a n o ppo rtunity to e xpa nd in a no the r ma jo r c ity (CA ha s o ve r 25 mil c a rs)

• Ma rc h 15th to o k o ve r Me tro .
• April 1st c o mple te c ha ng e o ve r to a ll PA c o mpute r syste ms
• 13 mil inve nto ry put b a c k in syste m fro m Ma rc h 15th to c urre nt
• E

xtre me ly ple a se d with tra nsitio n o f fo rme r Me tro pe rso nne l. T he y a re a uto pa rts e xpe rts a nd we a re ve ry e xc ite d a b o ut the future .

• All 3 c ha nne ls (2-ste p, 3-ste p, inte rne t fulfillme nt g ro wing

ste a dily a nd a re o n ta rg e t with ma na g e me nt e xpe c ta tio ns.

PART S AUT HORIT Y AND T HE F UT URE

• Bric k a nd Mo rta r L
• c a tio ns ne e d to c a rry mo re se le c tio ns a nd

mo re inve nto ry a s c usto me rs a re e xpo se d to mo re b ra nds.

• E

ffic ie nt ha ndling o f pro duc t

• E

ffic ie nt wa re ho using a nd tra nspo rta tio n lo g istic s a must

• Co ntinue d inve stme nt in te c hno lo g y a s c o nsume rs a re g o ing

to wa nt o ptio ns fro m the ir lo c a l ve ndo rs tha t the y g e t fro m the ir

• nline ve ndo rs
• Disc o unts fo r no re turns
• Vo lume disc o unts
• Shipping o ptio ns

1=E xc e lle nt 2=Go o d 3=Ave ra g e 4=F a ir 5=Po o r 2016 Ave ra g e 2016 Be st 2016 Wo rst 2015 Ve ndo r 2016 Ve ndo r E a se o f do ing b usine ss 2.49 1.50 3.25 1.75 1.63 Pe rfo rma nc e 2.70 1.43 3.71 1.86 2.00 T e c hno lo g y e a se 2.72 1.25 4.50 2.25 2.00 PA g ro wth 2.82 1.00 4.00 1.75 1.50 I nte rne t g ro wth 3.13 1.80 4.20 1.80 2.00 I nte rne t fulfillme nt pa rtne rship 2.81 1.75 4.75 2.00 2.00 Ove ra ll Sc o re 2.78 1.45 4.07 1.90 1.85

PART S AUT HORIT Y INT RANE T HOME GROWN T OOL S

T HE RE BAT E KING

PART S AUT HORIT Y INT RANE T HOME GROWN T OOL S

T HE RE T URN RAT E RE PORT

PART S AUT HORIT Y INT RANE T

OE INT E RCHANGE

WHAT T HE SUPPL IE RS CAN DO F OR PA

• Sta te me nts tha t a re e a sy to re a d a nd unde rsta nd a re

e a sy to pa y.

• Use d to ha ve 1 sto re , 1 sta te me nt no w tha t we ha ve

90 sto re s we still wa nt 1 sta te me nt.

• Bill the pro duc t the wa y it is shippe d. I

nste a d o f multiple pa c king slips to 1 b ill we pre fe r 1 pa c king slip to 1 b ill.

• Pie c e c o unts o n e ve ry invo ic e wo uld sa ve a lo t o f time
• Pro g ra ms a nd de a ls uninte ntio na lly se e m to o b fusc a te

ra the r tha n stre a mline the b ill pa ying pro c e ss, while a lso unde rmining the a b ility fo r distrib uto rs to a c c ura te ly c ha rg e the c o rre c t pric e fo r yo ur pro duc ts.

• So me Ve ndo rs do a po o r jo b o f c o mmunic a ting Pric e

c ha ng e s. T his c a n ho ld up I nvo ic e s a nd e ntire Sta te me nts

• T

he A/ P de pa rtme nt sho uld b e tre a te d like a c usto me r, no t like a de a db e a t.

Co mpa re Ve ndo r A vs Ve ndo r B fo r sa me pro duc t – Wa te r pumps Simila r q ua lity, simila r ma npo we r Pric e She e t Cha ng e Co st F lo w do wn 4.76% Sa le s F

• re c a st F

lo w up 5.44% Ve ndo r A vs Ve ndo r A 2 diffe re nt pric e s to 2 diffe re nt c usto me rs. 1 g e ts 2% o ve ra ll o n e ve ry sing le Pa rt # . Nig htma re Sc e na rio o f e pic pro po rtio ns. Ve ndo r A se lls to Custo me r A a nd Custo me r B a t a n o ve ra ll 2% b ut e ve ry pa rt # is pric e d diffe re ntly

Ne xt Slide

2 Different Prices on Every Part for 2 different Custom ers Cont’d