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Supply Chain: Getting Parts to Market Post Pandemic [THA 237]
Episode 23719th August 2021 • Remarkable Results Radio Podcast • Carm Capriotto, AAP
00:00:00 00:45:07

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https://www.youtube.com/watch?v=Ym5tl2-TCMk&t=1184s
Bruce Ronning, DR1V Group Vice President and General Manager, Americas Aftermarket   Brian Norko, SVP of Commercial Business Operations, NGKs aftermarket business  Malcolm Sissmore, Vice President, Sales, North America Independent Aftermarket, Delphi Product and Service Solutions Paul McCarthy, AASA President. Paul has over 23 years of experience in the automotive industry. Prior to joining MEMA, Paul led the Automotive and Industrial Products Strategy Practice at PricewaterhouseCoopers (PwC). He consulted at dozens of automotive suppliers, eight of the top ten global automakers, and at private equity firms and financial institutions. His past leadership roles include heading PwC Germany’s Automotive Strategy advisory practice and leading global forecasting and analysis for a prominent vehicle forecast service, Autofacts. Paul has an MBA from Duke’s University’s Fuqua School of Business. Find Paul’s other episodes HERE.
Key Talking Points
  • The biggest disruption in the supply chain since World War II- demand coming out of the pandemic, the reason for inflation. Not a singular problem, it’s the entire system being overwhelmed. COVID restrictions with overseas ports. 
  • Shipping issues and delays- ports backed up, just being able to get space on a truck or shipping containers. Shipping container fee for the boat is 20K. Starting to use more airfreight. 
  • Truck issues- access and drivers
  • Raw material shortage- chemicals, oil, microchips, steel etc.  
  • Labor issues- working in plants and warehouses. Stimulus is keeping a lot of people at home. Labor inflation
  • 7,000 workshops in the USA- busy as they want to be as they manage their capacity. 
  • 1 million jobs available in industry plus retirement is a double edge sword. 
  • Nearshoring is growing- less supply risk but labor issue is still prevalent 
  • Quality issues- competitors with the same part available are made in low-cost countries. You need customer satisfaction, the brands that you long trust for quality are still brands to trust. Top shops want the best quality parts. 
  • Manufacturer website- Knowyourparts.com 
  • How long will it last? How long will we see this level of demand for repair shops? This year that will have over 11% growth over last year. Next year over 5% growth. 2023 and 2024 growth slow of course, but is still above the pre-pandemic trend.
  • Electrification- more opportunity than threat for the aftermarket, be ahead of the curve.
  • A special thanks to Bruce Ronning, Brian Norko, Malcolm Sissmore and Paul McCarthy for their contribution to the aftermarket.
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