Fortune 100 Auto Parts Distribution Company

Challenges

This industry-leading automobile parts distribution company from North Carolina was concerned. A large segment of their wholesale customer base are baby boomer owned SMB’s, and the aging baby boomer retirement wave presents many challenges over the next 10 years. Private equity markets predict that more than half of all boomer-owned SMB’s will close, rather than be sold to investors. Faced with the potential shrinkage of their largest customer segment, this worldwide parts company invited a Herzberg Smith founder to help them brainstorm a comprehensive strategy to mitigate this potentially substantial future business risk.

Solutions

Herzberg Smith’s expert began by framing both the macro- and micro-economic implications of the impending boomer-retirement effect, and anticipating the impact on both the automobile service and automobile parts distribution industries. Numerous options were presented, discussed and collaboratively refined – including strategic and tactical considerations, cost/benefit analyses, aligned role assignments across partner companies, and detailed implementation plans and rollout timelines.

results

This program was approved by the parts company’s senior executive and finance teams, and has been launched nationwide. This new nation-wide program is an industry-defining opportunity for this top automotive parts company to establish a clear thought-leadership position, to support and preserve their current customer-base, and to position this new competitive advantage for substantial future market share gains.