Distributor of the Year Award: Raising the bar
November 1, 2008
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By Truck Parts & Service Staff
The five finalists for this year’s Truck Parts & Service Distributor of the Year award again highlight the best of independent aftermarket businesses. These five companies thrive in an ever-competitive and constantly changing economic landscape.
Distributor of the Year finalists are selected from nominations from their peers, suppliers and input from Truck Parts & Service’s editorial staff.
Since the June issue, Truck Parts & Service has revealed one finalist each month through question-and-answer style articles, which are available online at www.truckpartsandservice.com. In this issue, we profile all five distributorships as we take a closer look at how they have grown through the years, the practices and processes that help ensure their future success and how they innovative the aftermarket on a daily basis.
Please join us in congratulating this year’s finalists:
- Mike Betts, Betts Truck Parts and Service, San Leandro, Calif.
- Frank Camerota, Steven Camerota and Salvatore Camerota, Camerota Truck Parts, Enfield, Conn.
- Jerry L. Weis, Christopher J. Sweet, Ott’s Friction Supply, Portland, Ore.
- Dennis Webster, Potter Webster Company, Portland, Ore.
- Charles and Paula Weston, Westpac Heavy Duty Truck Parts, Phoenix.
The winner of the 2008 Truck Parts Distributor of the Year will be announced during the 2009 Heavy Duty Aftermarket Week in Orlando, Fla.
In conjunction with the Distributor of the Year program, Randall-Reilly Publishing, the parent company of Truck Parts & Service, has created the Randall-Reilly Educational Project. Twenty percent of all net display advertising revenue in this issue will be contributed to Northwood University as funding for its Heavy Duty Parts and Service Management Program, a two- or four-year ongoing degree-granting program, that helps cultivate the aftermarket leaders of tomorrow.
Betts Moves Beyond Relationships, Forges Partnerships
Working with customers, suppliers and employees who have similar core values has led to the impressive growth of Betts Truck Parts and Service.
By Denise L. Rondini, Contributing Editor
Everyone in the truck parts aftermarket talks about the importance of relationships. But Mike Betts, president of Betts Truck Parts and Service, is more interested in partnerships.
The distinction is more than just semantics. It is the difference, for instance, between dating and marriage. The mutual investment in the latter arrangement is far greater, as are the rewards when done correctly. Betts’ profound commitment to the shared success of customers, suppliers and employees is inextricably linked to its own prosperity.
Drawing on the 140-year history of its parent company, Betts Spring Co., Betts and his partner Don Devany, senior vice president, have a profound commitment to their customers, suppliers and employees.
In response to customer demand in the late 1970s, Betts Spring Co. moved from manufacturing springs to installing them as well. The company opened its first distribution branch focusing exclusively on suspension parts in 1988 in San Leandro, Calif., at its manufacturing location.
“We quickly grew that location and moved it, and then we expanded into other markets where we already had good customers, brand recognition and respect,” Betts says.
Today Betts Truck Parts and Service operates out of nine locations in California, Arizona and Oregon.
Its newest location is located in San Jose, Calif. Only 30 miles separates the San Jose location from the San Leandro headquarters, but according to Betts, it can take an hour and a half to two hours to get from one to the other. “By opening our San Jose location, we will make deliveries to our customers much quicker and our customers can get to us quicker. We are much more available now.”
In a partnership, each party has responsibilities and Betts sees this as true in the company’s partnerships with its customers. “We greatly value all customers at Betts, but on rare occasions we have found that a customer’s objectives may not be aligned with our values.”
What happens in a circumstance like this is that the partnership becomes “too one-sided and can collapse under the weight of the disparity,” he explains. This might occur in a situation where a customer demands the lowest price on every product they purchase without regard for volume, expertise, fill rates, payment terms, etc. “While we value that customer, that challenge could be something that is not in our wheelhouse. Partnerships with our customers are founded on mutual respect for the need for profitability. Our focus is on adding value and at the same time being competitive.”
The idea of partnerships carries over to Betts’ interactions with component manufacturers. “We distinguish between vendors and suppliers,” Betts explains. “Vendors sell products and suppliers add value.”
Betts has what the company refers to as preferred suppliers. “They understand the importance of establishing long-term partnerships that are premised on optimizing the relationship for mutual growth and profitability. While pricing and inventory investment always are critical elements, a real preferred supplier relationship focuses on total cost reduction for both the manufacturer and the distributor.”
As a result, Betts and its preferred suppliers put a lot of emphasis on ordering cycles, logistics, billing and payment process and “even the more subtle cost drivers.”
Betts says, “It is the total package. Our preferred suppliers understand the value of the partnership with Betts because it is built on trust, integrity and a commitment from both parties to be equally successful and to move in the same direction.”
Firestone’s Jim Carter backs this up, saying, “Betts had the opportunity recently to go with a competitor, but Mike and Don decided that their relationship with Firestone meant more than switching to Brand X for a cost reduction. They are sticking with us for the long haul.” Betts has been a Firestone distributor for 30 years and according to Carter, “they know how to treat people and that includes suppliers. They treat everyone with a lot of respect. If you make a mistake, they give you every opportunity to make it right without jumping up and down and threatening you.”
Dayton Parts also has been a long-time supplier to Betts Truck Parts and Service and the company’s Gary Smalley considers Betts to be a loyal distributor and a partner. In fact, Dayton Parts believes so strongly in the relationship that “we are willing to share some of our strategic initiatives that we have on the drawing board with them. We get their input and guidance on how they see something helping them or benefiting our company.”
He adds, “A partnership is a two-way street and there has to be a willingness to share information and for both companies to be able to do things that will help each other grow their businesses in the future.” Dayton Parts feels it has found this willingness in Betts.
One of the things Betts counts on its preferred suppliers for is training. He believes it is absolutely paramount that Betts’ employees be well trained. When evaluating a supplier, Betts looks at those who have the technology like Webinars and the staff to participate in open houses, field training and customer training. “All aspects of training are very important to Betts Truck Parts and Service,” Betts says.
To evaluate the performance of its suppliers, Betts formed an Inventory Committee. Each year, Betts employees are rotated on and off the committee. “We call it the Inventory Committee, but really it is about supplier relationships and products. This committee evaluates the performance of our suppliers using a set criteria. Training is at the top of the list.
“The committee examines the core values of the supplier and compares those values with the company’s values. Are they in alignment with ours? Obviously they have to have the products and the products have to be good, but it also is about core values being aligned.”
This same concept carries over to the distributorship’s dealings with its bank, insurance provider and other consultants. It also plays a role in Betts Truck Parts and Service’s involvement with HD America. “We are proud of our partnership with HD America. We feel aligned with them. It gets back to our core values of trust and integrity. We have a long standing relationship with HDA and we are honored to be part of it,” Betts says.
“Building Well, Serving Better,” was the motto of Betts Spring Co. founder, William Michael Betts I. And to this day, it is the motto Betts and his staff live by. He explains that his great, great grandfather recognized that anyone could make or ship a truck part and that customers patronize businesses that care about them and respect their business.
Part of the way Betts Truck Parts and Service demonstrates its commitment to its customers is through the empowerment of its employees. “We empower our salespeople, our field people and our counter people to solve the customer’s problem.”
The concept of being part of a team is stressed at Betts Truck Parts and Service. “We establish guidelines for our people and then encourage them to use their own good judgment in solving customers’ problems.”
Betts explains he is not necessarily referring to a customer having a problem with the company, but rather a customer who may be having difficulty identifying a part or one who has some other need that “our customer service and sales people are trained to solve.
“We don’t want them to have to say to the customer ‘I need to call my manager. I will get back to you.’”
He continues, “We want them to have the tools they need to solve problems now. We pride ourselves on doing the right things right; right now. We feel that probably is one of the biggest differentiators between us and more bureaucratic organizations.”
With locations in three states and providing service to six states, Betts is known as the No. 1 suspension specialist in the western United States. “We are known for our vast knowledge, ability to service customers, large inventories and expertise. “We have been serving the suspension market for 140 years, so that makes us unique,” Betts says.
The distributorship carries a little more than 100 product lines and 36,000 inventory SKUs. “Our true focus has been on the lower body applications and complementary service around those products,” Betts says.
“While we never say never at Betts, I don’t think our people see us as being engine specialists because that is not core. We try to expand around our core and that will continue to be our focus.”
To continue to be successful in the future, Betts says the company pursues continuous improvement and that starts by listening to customers. “We will continue to focus on what the customer wants. If we do that and stay true to our core values we will be successful. If you have the people who are executing well everyday and they come to work with passion and a positive attitude, it is hard to lose.”
And Betts Truck Parts and Service is positioning itself for the future. Both Betts and Devany have sons in the business today. “Don has two sons in the business and I have one,” Betts says. “From a succession planning standpoint, we are very excited that we have the young bucks aboard and that they are going to help carry the torch forward.”
It is likely that the next generation to lead Betts Trucks Parts and Service will continue to grow by sustaining the partnerships that already have been developed and by forging new ones.
Specialists in a Specialty Market
Camerota Truck Parts continues to build on its nearly 50-year legacy, using cutting-edge technologies and business principles to serve customers.
By Derek Smith, Editor
Finding a needed niche in the aftermarket and serving it well is a proven formula for success. Growing complacent in that niche and not evolving is a proven formula for failure.
Camerota Truck Parts – boasting growth for the past 47 of its 48-year existence – proves these points on a daily business.
They have prospered, as their company tagline “Driverain Specialists” proclaims, by honing in on a market need. They have maintained their leadership within this role by making sure that tagline is not an empty customer promise. Investment in training and technology, adopting Fortune 500 business philosophies and seizing upon market opportunities keeps Camerota Truck Parts in a constant state of evolution, growth and adaptation to customer needs.
And, given the markets it serves, this not an easy task. Based in Enfield, Conn., Camerota Truck Parts – owned by Frank (president), Steven (vice president) and Salvatore (treasurer) Camerota – has the challenge of covering a wide range of customer parts and service needs across a vast territory.
“We have perhaps one of the most diverse market areas in the country. We serve the most densely populated areas of New York City and northern [New] Jersey, as well as the least populated areas of northern Maine, Vermont and New Hampshire,” says Frank Camerota, president. “As far as our largest challenge, it is stocking the newest generation of products which go first in the highly populated areas, as well as keeping in stock the 20- to 30-year-old items which we still sell in the more rural areas.”
Those demands for replacement parts and component support for both older and newer equipment requires a great deal of inventory. And, Frank admits, while it may not make fiscal sense according to some business philosophies, Camerota Truck Parts does it to help ensure they always have what customers need, when they need it.
“We handle every person who owns a truck from a pickup to a Class 8,” says Frank. “We consider all of them Camerota customers, so there’s no distinction. However as far as opportunities, it’s our extensive inventory. We are very inventory heavy which I consider an advantage to us going toward the future because we live in a world that is reducing inventory.
“We probably operate contrary to most accounting [practices]…In other words, since we are privately owned and we have particular views about customer service, we probably over compensate,” Frank continues. “Most people would think we are over compensating with inventory, but we consider it a company philosophy. Perhaps it’s not the most financially astute procedure, but it’s what we believe, it’s where we came from.”
Where they came from is a salvage business – Camerota Used Truck & Tractor Parts – started by the father of the three brothers, Salvatore “Sam” Camerota, in 1960. The brothers assumed ownership of the business when the father became ill and, in 1974, they went from dismantling trucks and selling the used parts to selling new truck parts, as well as remanufacturing transmissions, rear differentials and steering boxes. With the change in business focus came a change in name, and Camerota Truck Parts was born.
They have since grown to six locations and employ nearly 150 people. The change and growth, Frank says, has been constant.
“It’s been a continuous evolution and it continues today,” he says. “We’ve changed a lot in the past five years. We call it pivoting. We don’t change drastically, but we pivot and we look for opportunities.”
SIGNIFICANT STEPS
Several of the changes from the past five years that Frank refers to include implementing business practices usually used by larger corporations, including lean manufacturing principles and achieving ISO certification.
The lean manufacturing initiative has helped improve Camerota Truck Parts’ remanufacturing business on many levels, according to Michael Mallory, president of AutoPower.
“Frank has made considerable investment in plant design, workflow design and additional training of his personnel in specialized manufacturing techniques such as lean manufacturing. With the latter, he has increased the quality of production to a very high level, thus reducing production costs, labor turnover, assembly failures and warranty returns; as well as raised customer satisfaction to a higher level than traditional rebuilders,” Mallory says. “Frank has excelled in replacing ‘old school’ shop processes with advanced methods and techniques not often found in the heavy-duty industry.
“As a result of these important, yet fundamental, shifts in production procedures and practices, their company received fasttrack acceptance with ISO certification – which has remained in place over the past five years,” Mallory continues. “All of this, as well as the contributions of the AutoPower System software improvements to support lean manufacturing, shop cell production, electronic labor scanning, barcode technology to support daily core processing, ISO standards and superior product quality, has provided CTP [Camerota Truck Parts] with premier supplier status with significant market share in the northeast U.S.”
Camerota Truck Parts also has recently invested in taking on Allison transmission and Cummins engine parts and service, service department upgrades and new technologies.
Regarding the latter, they have joined a rather elite group of distributors who are conducting full transactions via the Internet, from component selection to payment. “A lot of our customers are demanding e-commerce because they need the control and e-commerce brings that control to them,” says Frank.
Camerota Truck Parts also has created an online system with which customers can find information specific to their vehicles, including parts lists, component photos and an ordering system that helps eliminate errors.
“It’s a self-correcting procedure,” says Frank. “Every problem we have with someone mis-ordering a part is corrected. There’s no reason to make the same mistake twice, so what we’re doing is making it easier and easier for customers to get the right component the first time. And a lot of them now are completely electronic. They order electronically, we bill them electronically and we get paid electronically.”
Taking on Allison transmission was another significant strategic step for Camerota Truck Parts and also led to pioneering new technology.
From a business standpoint, Frank says, supporting automatic transmissions for heavy-duty trucks made sense because he believes that’s where the industry is trending to help widen the pool of available drivers. “Oh yes, it’s coming. There’s no stopping it now,” he says.
Supporting the new line meant building upon the company’s already strong commitment to using the latest shop tools and equipment.
“In our field, which is drivetrain, we have no choice but to be at the forefront of diagnostic technology,” Frank says. “We do not get paid to sell parts. We get paid to solve drivetrain problems. So as the newer drivetrains become more and more integrated among components, service and support will increasingly play a larger role in our business.”
In the case of supporting Allison transmissions, Camerota Truck Parts isn’t just keeping pace with diagnostic technologies, it’s taken it to a higher level. Frank says the company has equipped its outside sales team with the necessary software and cables to help diagnose and troubleshoot at customer locations.
“Our saleseople are not Allison experts, but they can go to a remote customer location – since they’re going to go there anyway – hook up to a vehicle and relay back to what we call the ‘mother ship’ what they see and the codes they’re reading,” says Frank. The on-site diagnostics helps customers determine what repairs and replacement parts may be needed, saving them the cost of a service call. It also adds to the value each salesperson brings on the sales call.
“Now, all of a sudden, it’s not ‘here comes that salesman,’” Frank says. “It’s, ‘I’m going to desperately need that person someday.’”
SETTING SERVICE STANDARDS
How Camerota Truck Parts approaches customer service can perhaps best be summarized by Frank explaining who the company’s best customer is. It’s a judgment not based on friendship, sales volume or loyalty.
“My best customer, who shall remain unnamed, has been so demanding in the past 25 years with respect to quality, service and price, he has managed to drag us kicking and screaming from one level of excellence to the next,” Frank says. “And for that, I and all Camerota employees, will always be grateful. That’s my best customer. He’s done more for us than he’ll ever know.”
Rising to customer needs, even if it means making sacrifices and investments, is simply the way Camerota Truck Parts does business.
“In the future, that’s going to be more and more important because our customers are going to have more and more buying opportunities and options,” says Frank. “And there’s no question it’s going to be like the restaurant business – you will be judged based on your last transaction.
“But that being said, we perform very well in that field. We’re focused on it and we are best in class in that field because at the end of the day it’s not like an OEM dealership where you have a built-in customer base. At the end of the day, we have no customers. We have to earn every one of them every day.”
Mighty Relationships Smart Diversification
Combining old-fashioned relationship building with cutting edge e-commerce technology helps Ott’s Friction Supply, Inc. remain larger than life.
By Erin Sund, Managing Editor
When developing growth plans, businesses often set goals measured in dollars and market share.
Occasionally, however, a business sets different benchmarks: Customer loyalty, strength of relationships and employee tenure. Ott’s Friction Supply Inc. is one such company. Its emphasis on strengths beyond the dollar is what makes it dynamic in its market, and what steers the company through trying times. Ott’s Friction Supply has been around for many generations, in part because of its management’s ability to unflinchingly confront present-day realities and to look ahead with a discerning eye.
This keeps the business vibrant and modern.
Headquartered in Portland, Ore., with a second location in Eugene, Ore., Ott’s Friction Supply serves fleets, jobbers, repair shops, municipalities and end users. It was founded in 1925 by R.G. Ott and was the first business in the country dealing exclusively in automotive brake linings. The strong economy of the 1940s and 50s prompted expansion into four Portland-area locations.
Reginald Ott, R.G.’s son, took over the business in 1959. In 1975, the decision was made to reconsolidate. Leaner and meaner, Ott’s Friction Supply was passed on to Dale Ott’s care in 1985.
Fourteen years later, the current ownership team purchased the company. Jerry Weis became president; Chris Sweet, vice president; and Teresa Weis, secretary/treasurer. The team was hardly newcomers, though. All of them had been with the company for about a decade.
Ott’s traditionally has specialized in brakes, clutches, friction material and other wheel-end parts, but part of its strength is its commitment to smart diversification. The willingness to take on new specialties has led the 80-plus year-old company down some untraditional paths. For instance, when approached by a manufacturer looking for a third-party logistics warehouse, Ott’s Friction accepted the challenge and WSB Logistics was born.
When the next opportunity comes along, the company will be ready to consider it. According to Weis, the management team focuses on the future and tries to beat others to the punch. While the company has a far-reaching history, its technology is up to speed.
“We’re fully bar-coded,” says Weis. “We’ve had many challenges resulting from the fact that we’re ahead of some manufacturers in that respect.”
In a September 2008 interview, Weis said that the biggest challenge facing the aftermarket is the successful implementation of e-commerce for all phases of order fulfillment. “The OE regional and national competitors have adopted more efficient supply-chain technology, and distributors need to increase all aspects of their e-commerce capabilities if they are to remain competitive. It is a proven way for distributors to reduce costs and increase efficiencies,” says Weis.
He believes the challenge can be resolved through the adoption of commercially available processes used in wholesale distribution. “The independent, heavy-duty aftermarket distributor must use these tools to remain competitive,” he advises.
At a time when many companies are consumed by the financial woes of the moment, Weis and his team have stepped up their planning. “The forward planning now has to be an integral part of your every-day vision, where in the past you did it once a month or once a quarter. Now it’s daily or even hourly.
“We’re fast on our feet,” Weis continues. “We spend a lot of time communicating, planning and looking forward.”
Although Weis and his team pride themselves on being fast moving and adaptable, one of the things that they don’t rush through is relationship building. The relationships Ott’s Friction Supply has cultivated – both with customers and employees – all have incredible staying power. Weis and his team consider their suppliers and employees as friends.
“Chris [Sweet] and I have tremendous relationships with every supplier we do business with,” says Weis. “It is our belief that if we treat everyone we touch with as much integrity as possible, we will be successful.”
To this end, the company works hard to take care of its customers and employees, dedicating an immense amount of time and resources to relationship building.
“[Ott’s Friction Supply] is a very different business,” says Steve Crowley, president of VIPAR Heavy Duty, of which Ott’s Friction Supply is a member. “It’s a throwback to real relationship selling and there aren’t many distributors who still do that. They spend a huge amount of time making sure their customers’ needs have been taken care of. They’re truly passionate about customer service.”
Bridging the gap between supplier and end-user is something at which Ott’s Friction Supply excels. Weis is a strong believer in using international business developments as cues for what will eventually change things at headquarters. He and his team dedicate time to keeping abreast of what challenges and developments their suppliers face, and anticipate how the resolutions will trickle down to affect their own business, and their customers’ businesses.
“We try to keep track of what’s going on with our suppliers internationally because that affects what they do here. We sit and say, ‘If this is what they’re doing internationally, then what can we expect them to do in the U.S.? And if that’s the expectation in the U.S., how is it going to affect us in Portland?’”
Information is not hoarded at Ott’s Friction Supply; it’s communicated, readily and frequently. “One key to attracting and retaining good people is communication,” says Weis. “There are very few things that we don’t discuss with our employees. For example, we keep our outside sales and counter people well informed about what is going on nationally and how it’s going to affect them locally. We feel like this gives them a tremendous edge over their competition.”
Weis and his team also emphasize the importance of conducting regular manufacturer clinics in their facility. “We order in food and spend the evening on training,” says Weis. “It’s a sales tool. We do the promoting and bring our fleet customers in for the clinic and take them on a tour of the facilities. Bringing people in your building always is valuable. The customer sees what you have and then keeps you in mind next time they need something.”
Ott’s Friction Supply keeps its doors open to new talent, whether or not business is booming. “When we like somebody, we find a way to hire him or her, no matter what the economy,” says Weis.
The management team excels not just in finding new employees, but also in keeping them. Weis again stresses the important role communication plays in employee satisfaction and retention. He and Sweet usually assign new people to the teardown, dirty jobs so they can learn the intricacies of system construction.
Noting that young people usually will want to do this for about 20 minutes, Weis advocates being candid with new employees, telling them that this will be their job for a predetermined amount of time. He stresses the importance of clearly communicating why it’s important for them to gain this kind of experience.
“There are many benefits to working in this industry,” says Weis. “When you’re a good heavy-duty parts person, you can find a job in any city because it’s so hard to find good people for this position. We try to get younger people to understand that if they’re patient, it will pay off. The rewards are great.”
The company donates time and resources to vocational colleges and trade schools in their region. They also are active members of the Oregon Trucking Association. Weis participated as the chairman of HDAW 2008 and has served on the board or directors for VIPAR Heavy Duty for several years. The team also is a contributing member of CVSN and, according to Weis, has served on many manufacturers’ distributor advisory councils. “We are totally committed to the ongoing viability of the independent, heavy-duty aftermarket,” says Weis.
Dedication of time and resources on this level has taken careful management and balance, but it hasn’t kept Ott’s Friction Supply from devoting critical attention to its own business model. The company’s five-year vision includes diversification and specialization.
“We believe the industry will continue to consolidate on all fronts: The manufacturers, the fleets and the distributors,” says Weis. “To survive, we will diversify into new products and services, while becoming the specialist to control our market share. Couple that with technology, and you have our vision.”
“[The management team of Ott’s Friction Supply] has been very willing to take a look at other places to grow their business and other products to offer,” says Crowley. “They have branched out. You have to expand your business and look at being a full-service house to your customer.”
With an eye for proactive diversification, a willingness to adopt cutting-edge e-commerce solutions and the solid fundamentals of strong relationships, it’s certain that the industry can expect longevity and vitality from Ott’s Friction Supply.
Perpetual Motion, Staying Power
Potter Webster Company may be a third generation family-owned business, but its longevity is reinforced by the company’s adaptability and willingness to change with the times.
By Erin Sund, Managing Editor
Working 50 years in the industry has given Dennis Webster perspective. As president of Potter Webster Company, he has seen downturns in the trucking industry and its aftermarket, as well as in the general economy.
During the tough times, he knows better than making knee-jerk reactions. Rather, he takes advantage of the situation and turns it into a time to recharge and ramp up training efforts.
Using training as a sales tool, treating vendors like partners and letting technology work for – and not against – the company has kept business strong and will continue to support it into the future. Add to that a focus on expansion and continued diversification, and it’s easy to see how the company continues to drive forward, building on its rich history.
Potter Webster Company has deep roots in the Portland, Ore., area, but it is far from your typical mom-and-pop operation. In 1918, Orin Potter started a company called O.T. Potter Co. In those days, the meat and potatoes of the business was supplying automotive aftermarket fenders and exhaust systems. Dennis Webster’s father, J.R. Webster, and his uncle Walter Webster, had joined forces with Potter in 1940 and the company was christened with its current name.
Dennis Webster joined Potter Webster Company (P.W.C.) in 1965. At this time, the company had evolved into a supplier of friction products and friction-related services to the logging industry. Shortly after Webster joined the family business, it moved to a new location and began distributing heavy-duty truck parts, adding product lines from several large manufacturers.
The 1970s, ‘80s and ‘90s brought a storm of acquisitions and openings for the company. While the rapid growth has calmed for now, Webster keeps a keen eye open for new specialties that might mesh well with his company. “We’ve found that we have to diversify,” he says. “It’s important to get into specialty companies that might not necessarily be heavy duty. That’s our strategy going forward; use the specialty-type of operation to survive.”
“Potter Webster is a firm believer in diversification,” says Pat Biermann, president of HD America, of which P.W.C. has been a member since the early ‘80s. “You have to spread the potential exposure. That is why they are in so many different markets.”
In this atmosphere of perpetual motion, slowed sales isn’t a time to sit back and become complacent; at P.W.C., it’s a time to get working on projects that might have been pushed aside when sales were booming. One job Webster believes is of the utmost importance is training.
“We do a lot of cross training so that our salespeople have multi-division product knowledge,” says Webster. “When you’re busy, it’s hard to cross train, but when times are like now, we have the opportunity to do a lot more of it.”
At P.W.C., education is a tool used to keep a competitive edge. “You have to make sure that you are well enough informed about what the competition and your customers are doing so you can analyze that against your strategy,” said Webster in a July 2008 interview with Truck Parts & Service.
Webster relies on his marketing group, HD America, as a source of industry information. “We attend meetings and seminars regularly that they put on for their members,” says Webster. “We also participate in Heavy Duty Aftermarket Week. We look at vendors’ new product displays. We rely on them heavily to see what’s available to us.”
At P.W.C., vendors are not simply product sources – they’re true business partners. The close relationships they’ve developed with vendors helps their customers get the best products and services for their needs and keeps P.W.C. stay on top of the heap.
“We have found that you must have your vendors become your business partners to help expand your sales force,” says Webster. “Teamwork has been the key for our associates to lead us into the future.
“At least once, if not twice a month, we schedule a vendor to ride with our salespeople and work with them for the day. The vendors always bring a lot to the party with their product lines and our salespeople are educated by listening to them talk to our customers. It’s been a very valuable tool and we heavily rely on them.”
P.W.C. has a corporate culture that fosters education and values training. The company reaches out to local trade schools and other organizations by hosting training and educational events. “We believe education is one great selling tool, so we put on at least one class a month in some technical field,” says Webster. “We sponsor fleet nights and fleet training at the trade schools, using classroom facilities and inviting their students in.” After all, if you have a strong business of which you’re proud, it’s never a bad idea to bring as many people as possible through your doors, even if they’re not your customers – yet.
Another large part of what keeps P.W.C. an aftermarket front-runner is its willingness and ability to embrace technology. In 1994, Vicki Webster-Calcagno, a third-generation member of the family business came on board, starting in the accounting office and moved up to her current position as the marketing/sales manager. She’s helped bring the company up to speed technologically.
When asked if he’s found that technology is a good way to take costs out of his business, Webster responds, “It’s the only way today. We find that if you don’t keep on the cutting edge of computer managed inventory and VMI, if you don’t take advantage of the Web and consider all the things technology can bring to your business, you won’t be in business long.
“When it comes to inventory, we let the computer do its work. As sales slow, we don’t replace even ‘A’ items in their former quantities. This is not the time to spend money foolishly because it’s too hard to get it back,” says Webster. “We let technology help us with our finances.”
Potter Webster Company excels at looking critically at the services and products available to them and then turning them into selling tools and profit centers. “Dennis and his team are firm believers that their group, HD America, offers the opportunities they could not enjoy by themselves,” says Biermann. “National warranty, national fleet programs, ancillary services and technology are just a few examples.”
Webster admits that he used to think the grass was always greener in other industries, but he says he’s found that the grass doesn’t get any greener than here. “I have found that making wrong decisions has only strengthened me to make the right ones in the future,” he says. “You learn from them and go on.
“Our position is to be a leader, not a follower, when it comes to survival.”
And with an ability to keep current in a perpetually changing market, this position stands a good chance of becoming permanent.
Three Generations of History
Portland, Ore-.based Potter Webster Company builds upon its rich history to secure a prosperous future. Following are historical highlights of this 90-year-old business:
- In 1918, Orin Potter started a company called O.T. Potter Co.
- Dennis Webster’s father, J.R. Webster, and his uncle Walter Webster, had joined forces with Potter in 1940 and the company was christened with its current name.
- A year later, J.R. Webster acquired his brother’s share of the business, and in 1945, he bought all of Orin Potter’s shares and became the sole shareholder of Potter Webster Company.
- Dennis Webster joined Potter Webster Company (P.W.C.) in 1965.
- The business moved to a new Portland, Ore., location in 1970 and began distributing heavy-duty truck parts, adding product lines from several large manufacturers.
- This diversification necessitated building expansion and two additions were made to the building purchased in 1970. The 1970s brought another change as Dennis Webster began to manage daily business operations. J.R. Webster passed away in 1986, and Dennis assumed the role of president.
- P.W.C. next bought out and acquired certain assets of R.W. Conroy Company, a distributor of Dana/Spicer truck replacement parts. It then opened a division of P.W.C. called Driveline Express Company that rebuilds driveshafts both in its Portland and Longview locations.
- In 1991, a second division was created: Axle Systems Company provides components to truck trailer manufacturers.
- P.W.C. opened a third division in 1993, Hydraulic and PTO Supply, a division that specializes in servicing the power transmission output market.
- In 2000, the company opened a 51,000 sq.-ft. facility in Portland, closing its old Portland location so that all area operations were under one roof.
- The next year, the company acquired a new division called Custom Parts and
Trailer Supply and changed the name to Custom Trailer Parts, specializing in small trailer parts. - In 2005, P.W.C. opened a service shop for light trailer repairs.
- The company acquired Hitch-Mart in 2006, a company focused on fabricating hitches and trailer repair.
Breadth & Depth
Westpac Heavy Duty Truck Parts brings broad parts offerings to a diverse range of customers, creating lasting relationships along the way.
By Derek Smith, Editor
Extensive, top-tier product offerings help get customers in the door at any of the three Westpac Heavy Duty Truck Parts stores. The relationships Westpac develops with those customers keeps them coming back.
Given the breadth of their product offerings and the numerous markets they serve, it would be easy to be lost in the crowd – a capable, but unremarkable business. After all, with so many niche aftermarket providers, it can be hard to make a name for yourself being all things to all people. So Westpac has built its brand and forged its respected identity on the relationships it creates across the board – with customers, employees and suppliers.
“My business philosophy really comes down to people. If we take good care of our people and they take good care of our customers, and as a result our customers talk nicely about us, it helps us grow our business,” says Charles Weston, Westpac president and CEO. “That’s pretty much it. Just grow the business through spreading your good name and backing your name up with ‘if you say you are going to do something, you better do it.’”
This distinction serves the company well in the three competitive markets it serves – Las Vegas, Phoenix and Mira Loma, Calif. Weston says the toughest competition comes from the specialty stores and shops which are “very, very good at what they do. On the other hand, so are we, and we can provide one-stop shopping.” The broad inventory makes shopping convenient for customers, and knowledgeable, courteous employees move Westpac into the category of partner rather than just distributor.
“I believe the customer is definitely the yardstick by which we are measured,” says Weston. “And it’s not how we think the customer measures us or how they perceive us – we want to know how they actually do. So we like to go and find that out to make sure we’re making the right decisions and that, if we make a commitment, we live with it.”
Weston says they accomplish this in part by keeping in constant communication with customers. The needs of customers are accurately diagnosed and successfully acted upon as a result of the expertise of its staff, which stems from training and experience. The latter being an impressive Westpac asset.
“I can name seven people that, combined, have been with us for 180-plus years,” says Weston. “Certainly our experience is very, very deep.
“My sales manager is probably the only one I hired outside of this industry. I hired him four years ago and he came in with new concepts and probably a little more from the technology side as he came from the electronics industry. He came in not with a clear vision of what we can do, but more looking at what we can’t do and why we can’t do it. That’s been a nice addition. Other than that, most of the 70 employees I have, at least 50, have a tremendous amount of experience.”
The experience pays off in many ways, not the least of which is meeting customer needs across a wide range of business requirements and vehicle applications.
“We’re serving just about anything that has wheels and some stationery equipment. We specialize in construction, governmental, refuse, national fleets – pretty much everything,” says Weston. “Our markets are in the southwest, mainly Arizona, California and Nevada, but we ship all over.”
Weston says the broad customer base helps Westpac better weather market downturns. When business is soft in one segment, they have the products and the personnel to go after business in other segments that may not be as depressed.
“Market challenges also are opportunities in our case, because in today’s market, while construction is certainly a big part of our industry, it’s way off,” says Weston. “New homes have completely stopped, highway funds are drying up, and so forth – it’s a challenge. But because we have so many SKUs and so many different types of customers and specialties and so forth, during these times we are able to go out and not go backwards in our business. We just sell different products to different types of customers instead of losing ground.”
LIGHT-DUTY HISTORY
While Westpac comprehensively serves the heavy-duty aftermarket, this was not always the case.
The company can trace its origins back to Placentia, Calif., where in 1929 the Charles W. Carter Company was founded as an automotive parts distributor. Thirty years later, C.W. Carter Company opened its Phoenix branch, a location that houses the current headquarters and main distribution center of Westpac Heavy Duty.
Weston began with C.W. Carter in 1969 as an entry-level warehouse worker and worked his way up to vice president and general manager by the mid 1970s. It was during this time that the company’s business portfolio took a dramatic turn.
“We actually were a traditional automotive warehouse with a few heavy-duty lines and nobody to sell them to,” recalls Weston. “In the early 1970s we changed from being a traditional automotive WD into going direct to the fleets, dealers and repair shops.
“We threw away about 60 percent of our business overnight, and it was the smartest thing we ever did. We started adding more product lines and we are pretty much bumper to bumper now.”
The company took the gamble, he says, because independent automotive parts distributors were being replaced by national companies and chains. “Independent jobbers at that time, in our market anyway, which was only Arizona that I was overseeing, were just disappearing,” says Weston. “It was a tough decision, but it was a decision I’m glad we made.”
Coincidentally, it was a similar business environment that led to Weston’s ownership of Westpac.
Weston recalled the circumstances during a previous interview with Truck Parts & Service: “Over the years, I often thought about going out on my own and decided to do so after the unsuccessful industry roll-up of Carter Company into TransCom/USA. I knew that I owed it to myself and to the loyal and long time former Carter Company employees to assume ownership and invest in all of our futures.”
PROSPEROUS PAYOFF
It was a risky venture, but one that he says resulted in his proudest professional accomplishment.
“After making the decision to throw caution to the wind, buy the company and do everything that I could to come up with the financing, I end up buying a large inventory in California and moving it to Phoenix to leverage myself to buy the Phoenix store and then two other stores,” says Weston. “In two years I bought four inventories and three going businesses. In less than four years, I doubled the revenue and paid off all five loans I had taken to do that.
“There was nothing like signing that last check and looking in the mirror and knowing what I accomplished and that I was taking good care of my people.”
John Flad, Bendix Commercial Vehicle Systems’ vice president of aftermarket sales, North America, also recalls that time in Weston’s history, as not only it the birth of Westpac, but also the start of a prosperous relationship between Westpac and Bendix.
“I greatly respect Charlie [Weston], because he went way out on a limb to resurrect Westpac,” says Flad. “He bought some assets, including a remaining core bank, held by Bendix. To make a long story short, Charlie needed some help to make the core bank his, and we helped him.
“In his quiet, unassuming way, he said he would not forget our help. Bottom line, he never has. Charlie took a business from bankruptcy, and today does a huge business with us, and many other suppliers. But it’s not just the numbers, it’s the way he goes about his business. He creates a real team at his business, and the group dynamic is respectful, determined and supportive of their customers and suppliers.”
The philosophy of treating suppliers like business partners extends throughout Westpac’s relationships.
“I feel we have very good relationships with our suppliers and I encourage that, to make it a win-win and not just a win for one side or the other. Most suppliers still are looking for that kind of arrangement,” says Weston.
Again, it’s all about the people, whether they be employees, suppliers or customers.
“People still do business with people,” he says. “For the most part, that’s still the key factor. But the part that we don’t have control of is as customers are being bought up or have their purchasing mandated by an office that is out of our area. There’s still a lot of loyalty, but price sensitivity is getting into the equation a little bit more everyday.”
While price always will factor in the acquisition decision, having the depth of product to meet customer requirements and the skilled, knowledgeable employees to support them, always will help keep Westpac a step ahead.
