AWDA's Northup talks aftermarket challenges, permanent industry changes

Larry Northup, executive director of the Automotive Warehouse Distributors Association spoke with Aftermarket Business World about the group's recent conference, supply chain challenges and the values of partnership to keep the industry successful.

The AWDA Conference got rave reviews. Tell us about the event's structure, how you adjusted to the virtual format and what made it such a success.

AWDA’s one-on-one meetings are at the core of its conference and fortunately, are structurally tailor-made for a virtual environment, being comprised of many individual meetings between small groups of channel partners. We also used the same scheduling software as in past years, so our members were already familiar with that process. The actual meeting platform synched perfectly with the scheduling software, so the experience was virtually seamless.

We also modified our traditional registration and pricing models to better fit the virtual experience. We usually charge by the person, but this year, a single company registration covered an unlimited number of company delegates. This structure, combined with the virtual format, allowed members to invite many more people than usual to their meetings, including subject matter experts and field personnel that typically would not be in Las Vegas. 

Like you, we heard a lot of great reviews, now the challenge will be to incorporate the advantages of the virtual conference into a live event…or whatever the future will hold for us!

What were some of the most important themes to come out of the conference?

Supply chain issues continue to bedevil various sectors of our industry, so they were discussed in many of the one-on-one meetings. COVID-impacted functions like training and sales support were also discussed, along with the usual topics of new programs, personnel issues, forthcoming promotions, etc.

In a break from tradition, the AWDA General Session featured a panel of members who described lessons learned during the pandemic. Possibly the biggest takeaways were the value of flexibility and the need to move quickly and decisively in a rapidly-changing environment.

 Not surprisingly, although many members appreciated and found value in the virtual conference, they also reported that the extended separation from customers, peers and industry friends made them appreciate even more the need for, and value of, face-to-face interaction. Nearly all look forward to a return to face-to-face meetings and trade shows!

 What have been some of the biggest challenges to the distribution market during the pandemic and how are they being addressed?

We’ve already talked about supply chain challenges, which are likely to continue to some extent for as long as COVID impacts the global supply chain. As a result, distributors and manufacturers will continue to see advantages from working together to ensure smooth and timely flow of parts to service and repair shops. 

Aside from that, person-to-person interaction continues to be a dealt with as circumstances permit. Physical separation, PPE, accommodation for at-risk employees, all these things have become part of the industry’s landscape. Sales calls, training, in-house administrative support, many of these activities were converted to virtual and some will remain so. 

Finally, uncertainty and constantly moving regulatory targets has been a big problem for many months. Members are looking for guidance and direction when it comes to COVID-related adaptations. Some is available from state and local authorities, but over the months, many have also come to rely on the Auto Care Association for insight and industry advocacy. Armed with that knowledge, companies can react more quickly and decisively.

 What changes do you see distributors making that you think will remain permanent?

Utilization of off-site personnel to perform various business functions will be much more accepted going forward. This is the case everywhere throughout the economy. It’s no longer a mystery: people now know it’s not only possible, but sometime preferable to undertake certain operations remotely. Sales and training are two areas that will see more virtual applications than was historically the case. This could bode well for manufacturers’ reps who can play a key role in communicating needs up and down the supply chain.

Many meetings will continue to be held virtually, even after the virus is defeated, especially small ones. Virtual will never entirely replace face-to-face contact, as this is still a “relationship business.” However, the fact is that some information can be conveyed just as effectively, and often more cost-efficiently, by video conference. 

Another trend that seems to be sticking is the increase in online commerce within the traditional aftermarket. Although most companies at least dabbled in online sales before COVID, many members watched internet sales spike upward in the spring. This caused many to accelerate the on-going trend toward more online sales, either by themselves or through third-party marketplaces.

Finally, many members were reminded of the need for, and value of, timely, honest and accurate communication with their employees, their customers, their channel partners and their peers. 

What are some of AWDA’s goals going into 2021 and beyond?

We plan to use the lessons learned at this year’s AWDA Virtual Conference to enhance the 2021 event, which we expect will return to a face-to-face format. For while most members agree that AWDA’s one-on-one meetings are better in person, certain aspects of the virtual environment can enhance our event going forward. Features like the ability to include off-site subject matter experts or team members who may not ordinarily attend AWDA or AAPEX, was clearly expressed as a possible enhancement.

 Also at the top of AWDA’s list of goals is to build upon the integration of Heavy-Duty distributors and manufacturers to generate more involvement within the Auto Care Association and AWDA leadership. More top-flight members that serve the heavy-duty aftermarket will inevitably lead to a stronger voice and ultimately more influence within the association and aftermarket distribution sector, generally.

Greater involvement and influence mean a stronger connection between AWDA and the mothership, the Auto Care Association. With advocacy, technology and market intelligence programs (among others) remaining top priorities for the Auto Care Association, AWDA and its members are committed to being one of the most supportive and involved of all the association’s great aftermarket communities.