The Aftermarket Auto Parts Alliance and Federated Auto Parts have announced a strategic collaboration to combine certain activities and resources to reduce costs and improve service and efficiency for their respective members.
The collaboration provides a framework for sharing benefits and costs in a number of administrative and support areas and includes shared ownership in The Automotive Parts Services Group, a joint venture with The Pronto Network, the program groups noted.
“We are happy to partner with Federated and APSG in a number of important areas that will provide enhanced value and opportunities for all our shareholders while maintaining our unique marketing identities and focus on local markets and the needs of professional service providers,” said John R. Washbish, president and CEO of the San Antonio-based Alliance. “The Alliance continues to be dedicated to shareholder member success, and this collaboration will support those initiatives by reducing costs and strengthening our ability to focus on customers and their needs.”
“Federated is excited about the opportunity to work closer with The Alliance and share resources and ideas in areas such as data management, communications, and other important support initiatives while also working together through our APSG joint venture,” added Sue Godschalk, president of Staunton, Virginia-based Federated Auto Parts. “We look forward to continued improvement and providing added value to our members through this collaboration.”
“The Federated-Alliance agreement continues the consolidation of efforts that began with Federated and Pronto forming The Automotive Parts Services Group in 2014, and follows Pronto joining with The Automotive Distribution Network, bringing in Parts Plus and AutoPride members,” added Larry Pavey, CEO of The Group. “It is exciting to see the major groups dedicated to working together in areas that provide benefits to their individual members such as IT support, national accounts, training and purchasing and it also provides benefits and efficiencies to suppliers as well.
“Working together in areas that require collaboration and eliminating redundant efforts and cost while maintaining a focused approach on marketing and customer service is really a win-win for all members of The Group.”
Frequently Asked Questions
Courtesy of The Alliance and Federated, here are a number of frequently asked questions regarding the strategic collaboration.
Q: Will the two offices be combined?
A: No. Both offices will be maintained and both will continue to focus on marketing programs and other specific areas of member support with a focus on their specific brands.
Q: Does The Alliance become part of the Automotive Parts Services Group?
A: Yes. The Alliance and Federated together become a partner with The Pronto Network in the Automotive Parts Services Group and will share in all activities that are part of APSG.
Q: Will the Alliance begin using The Group Training Academy?
A: Yes. The Alliance will support The Group Training Academy.
Q: Will the Alliance support the APSG supplier programs?
A: Yes. The Alliance will have access to all APSG purchasing terms sheets and also will continue to support certain non-APSG suppliers and private labels.
Q: Will Federated members have access to Alliance private labels?
A: No. Each group maintains exclusive rights to all private or exclusive brands that are marketed by their members. Those brands will not be shared.
Q: Will The Alliance become part of APSG National Account efforts?
A: Yes. Providing national accounts with the added market coverage and options will enhance the opportunity for all members of APSG.
Q: Who will run the new company?
A: There will be a six-person board with three Alliance representatives and three Federated representatives who will oversee the collaboration efforts initially. Much of the combined activities are managed through APSG reducing the need for added management.
Q: Will there be any people eliminated by the deal?
A: Each group will have specific responsibilities and managed resources that are available to all members, so there will be no planned reduction in people but rather redeployment of some redundant efforts to improve support and results.
Q: Will the two co-man warehouses be combined?
A: No. There are actually three co-man DCs available to APSG members including The Network Products facility. All will remain as servicing operations with some potential rationalization of lines/efforts and all three are available for any member.