Peachtree Corners, GA – A significant trend is emerging in the automotive dealership industry, with a growing number of car dealerships nationwide adopting new supply chain strategies. One of the notable shifts includes the integration of Mighty Auto Parts franchises into their operations.
The industry is witnessing a movement towards consolidating vendors and taking greater control over supply chains. This approach simplifies procurement processes and establishes a more efficient supply chain management system. The change is about efficiency and reflects a broader adaptation trend within the automotive sector.
Adam Gaedke, Chief Operating Officer of Van Horn Automotive Group, shared insights into their experience: “Our experience with the Mighty dealership program has introduced significant operational changes. It has prompted us to reconsider our approach to stocking parts and managing our supply chain.”
In line with these industry trends, Brian Tatela, Parts Director at Van Horn Automotive Group, commented on the shift in procurement strategies: “Like many in our industry, we are constantly exploring ways to improve efficiency and profitability. Adopting new strategies in procurement has been key to adapting to the changing automotive market.”
The move towards dealership-operated supply chains indicates a significant shift in the industry’s focus on efficiency and cost management. By becoming their own suppliers, dealerships are looking to streamline their operations and improve their bottom line.
The reconditioning process, a vital aspect of automotive dealership operations, has also seen improvements with these changes. Focusing on quality control and efficient procurement contributes to enhanced vehicle reconditioning processes, leading to higher customer satisfaction.
Josh D’Agostino, President & CEO of Mighty, commented on the industry shift: “We are observing a notable shift in how dealerships manage their supply chains. Our role is to support this industry’s evolution, providing resources and expertise to facilitate this transition.”
In summary, the automotive dealership industry is experiencing a paradigm shift in supply chain management. This movement towards vendor consolidation and supply chain control reflects broader changes aimed at enhancing operational efficiency and self-reliance in the automotive sector.
About Mighty Distributing System
Headquartered in Peachtree Corners, GA, Mighty supports 100 franchised distributors in 44 U.S. states and five international markets. The Mighty System features local service, inventory management expertise, and training in conjunction with extensive offerings of OE quality under-hood and under-car parts, chemical products, lubricants, shop supplies, and PPE products. Over the past 30 years, the Mighty System has seen significant growth by aligning with tire groups, quick lube chains, and car dealerships groups seeking a vertical integration strategy. Mighty was founded in 1963.