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Genuine Parts Company Message Board

  • flrpilt flrpilt Jun 18, 2003 9:05 AM Flag

    Shakeup???....Not Yet

    imho...judgment day is drawing closer, where hard decisions need to be made...

    1 of the profit centers needs to go...

    If it is the DCs, then regional overnight distribution will be the solution, with stores purchasing more direct than now...

    If it is the independent jobbers, then a solid, paced, acquisition plan must be put in place...

    There are hazards to each solution, but as competitive pressures continue to mount, the hard issues still have not been addressed...

    Current management has attempted to get leaner, but consolidating a sales force is a temporary profit enhancement...A short term solution, to a month to month goal orientated view...

    Top line growth will cure the ills, but in order to control this, all stores must be company owned.

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    • flrpilt: I agree that change is necessary, however making all the stores company owned imho will be the death sentence for GPC. They have plenty of company owned Jobbing stores now. I would love to see the P&L summary on those stores. Managing a group of stores in a metroplitan area is one thing, but try managing stores spread all over the country in small rural towns. Find good hard working, trustworthy employees,pay them a decent wage, not work them over time and give them benefits and see how much profit you have left. Most of the traditional NAPA Jobbing stores are run by owners who work and manage the stores and know who to hire in their town. You may say well dump those stores, but before you do that you should look at the combined revenue these small NAPA Jobbing stores bring to the table each month.
      I don't have all the answers, but if we are going the direction of all company owned stores then I need to sell the shares I have and move on.

      vet

 
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