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50 th ANNIVERSARY OF PARTS AUTHORITY DRIVEN BY VISION AND INNOVATION
This year, Parts Authority is celebrating 50 years as a company that has grown, innovated and shaped the automotive aftermarket industry in numerous ways. The company currently has more than 250 locations and more than 6,000 team members across the U.S. These facilities and committed individuals serve the needs of 70,000+ commercial customers from an inventory of millions of auto parts. Founded in 1973, the company launched with a single location in New York – now called Store #1– where it competed with a plethora of other “jobbers” (another name for an auto parts store). In the early 70s far fewer part numbers were needed to satisfy customers. There seemed to be an auto parts store on every corner, and jobbers often competed by o�ering deep discounts. Parts Authority took a di�erent route, winning business by providing a superior value and an excellent customer experience. Early on, the company recognized that repair shops were operating ine�ciently and unable to maximize their resources. Cars were sitting on lifts and mechanics could not work on them because they were waiting for parts. In that era, the industry was delivering parts on scheduled routes, which pro�ted auto parts suppliers at the expense of the repair shops.
Building upon this innovation, Parts Authority undertook another initiative, one that would rede�ne and expand the role of jobber in the aftermarket value chain. In that era, auto parts manufacturers sold their products exclusively to large wholesalers, who would stock parts in warehouses and sell them to jobbers. For the fast-paced Parts Authority, however, this wholesale layer bogged down the �ow of parts and added costs. The company challenged the system by buying direct from manufacturers, which o�ered a distinct advantage in the marketplace. As a so-called “two stepper” Parts Authority was able to get newly released part numbers and to bene�t from the manufacturers’ marketing support, including signage, technical training and programs that contributed to the success of both the company and its customer base. Parts Authority’s building was large enough to carry a deep inventory and was able to ful�ll almost every order. They also sourced parts that they did not have in stock, sometimes buying them from dealerships. The focus was on servicing the customer by taking responsibility for sourcing parts, so the shop owner could concentrate on running their businesses. TWO-STEPPER Based on this market insight, Parts Authority developed and pioneered “hot shot delivery,” which aimed to get parts delivered to a shop within 30 minutes. By using this service, shops were able to repair more cars every day and, most importantly, keep their customers happy. Today, “hot shot delivery” is a staple in every auto parts distributor nationwide.
5 Sustainability Report 2023: The Composition of a Responsible Organization
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