Branch Manager Sales Conference 2014

Martin explained that the same entrepreneurial flair and spirit that started the ECP business would carry it through into the next decade combined with a strategy that evolves from the customer and is driven by this new culture of togetherness. He said, “We believe in the ethos that you are all owner managers, you are the pioneers, your teams display these qualities and by working together, leveraging all channels and managing up we will make you even stronger. Our culture must be led by the customer. Get the customer right and the work will come. The age-old adage ‘the customer is always right, even when they are wrong’ is as true today as it’s always been. Make it part of your DNA, sort out their issues, help your customers build their businesses and this will lead directly to maximising our sales and margin potential. It’s that simple!” Martin went on to describe the personality of the business, commenting, “You have to be obsessed by everything you do. Be paranoid, a control freak, examine the detail, lift up the stones and have a work ethic that invites positive conflict not defensive negativity. Want more. Ask yourselves, ‘What didn’t I do today?’ and then fix it, strive for more, ruthlessly focus on what you should be doing and challenge yourselves, ‘Is this making us money today?’. Our customers have the opportunity to overtake the main dealers. They are independent business owners who manage our families’ cars by providing a much better service. Take your customer and installer through the journey of how you can help them achieve this success through the parts, paints and enhancements we offer. Sell them the sizzle, the vision, the future.”

Over 400 business leaders, directors, senior managers, lead BDMs, regional sales managers and branch managers gathered for two days on 2nd and 3rd May at the Hilton London Metropole on Edgware Road with a clear focus; to understand, discuss and commit to the underlying theme of the 2014 Branch Manager Sales Conference that we are ‘Better Together’. Supported by 44 suppliers who presented their products, services and initiatives in a bespoke exhibition village, the conference was the first opportunity for branch managers and representatives from LKQ, ECP, LKQ Coatings, Autoclimate and Sator to network, engage, share views and opinions and benefit from workshop sessions. The conference was led by Martin Gray, CEO of Euro Car Parts and the directors of LKQ Corporation, Rob Wagman, president and chief executive officer, John Quinn, chief financial officer and Joe Holsten, chairman of the board, who flew over from the States especially to lend their support and confirm their commitment to the aims and objectives of the business.

The Directors welcome the Delegates

Conference room ready for delegates

Martin Gray addresses delegates

The competition is in trouble and is finding it tough out there. By focusing together is how we will continue to be successful. By taking all our values, evolving them and applying them to the future is how we will win. Tenacity, resilience, aggression and passion is in our DNA and we must use this huge capacity for hunger to focus and drive ourselves all day every day.”

Speaking passionately about the tenacity and determination that has driven the business relentlessly to where it is today, Martin Gray said, “Our continued success depends on the innovation, ambition and hunger that has got us here to this point. What got us here will keep us going.

All accountable at LKQ

In his presentation, Andy Hamilton outlined the opportunity to the delegates, saying “Our customers want to be happy, do the job once and make a healthy living. Our customers NEED repeat and referred customers, maximum productivity and up to date skills, equipment and technology. This is where we come in. Currently, there is too much churn in business and this is a lost opportunity. We can help our customers understand what they need. Yes, they need the right quality products delivered on time, every time at value prices. But they also need us to be better partners to them. To reiterate Martin and Rob, our customers are everything. If we continue to do what we’ve always done and fight on price, it will only erode margin. We have to demonstrate how our customers can benefit from dealing with us through our cutting-edge customer relations and management solutions, and our industry-leading technician training packages. We should inform them about our state-of-the-art garage equipment and fully integrated diagnostic tools, designed to help them stay afloat and in business. Together, we should be giving our customers all the compelling reasons why they should be dealing with us and instill confidence in them that they are trading with the best in the industry. So whether you drive, repair or service vehicles, ECP delivers the best value, best service and power to choose."

Heads or tails? Andy Hamilton puts delegates through their paces with an on-the-spot business quiz

Three key points of excellent customer service

European Presidents Club The Branch Manager Sales Conference 2014 launched the European Presidents Club, a new scheme designed to reward our ‘ELITE’ branch managers who achieve growth above and beyond the company average. The top 20 branch managers who grow sales and margin, local customers and controllable contribution will be whisked away on an all expenses paid weekend to a European destination. Watch out for more details in the coming weeks.

ECP wins LKQ Operation of the Year –again!

Martin Gray collects the LKQ Operation of the Year award from Rob Wagman

For the second year running, Rob Wagman awarded ECP the LKQ Operation of the Year, recognising the continued success of the business, which has experienced further phenomenal growth over the past year. No other LKQ company has ever achieved this accolade two years in a row. We want to make it three years in a row so it’s up to each and everyone of us to do the triple!

‘Eat that frog’

One of the more unusual messages to come out of the conference was Rob Wagman’s mantra, ‘Eat that frog’. And no it wasn’t a reference to ‘I’m a celebrity get me out of here’! To put it simply, it’s about staying engaged, knowing your and your customers’ goals and issues and remaining relentless in their pursuit; staying conscious of the changing situation but, above all, being persistent, tackling the challenges head on and not procrastinating so you can capitalise on all the opportunities that present themselves.

Branch Manager of the Year Finalists:

Potted history:

Started as audit and compliance in April 2008 at Colliers Wood branch

Moved to assistant manager at Colliers Wood in 2009

Promoted to Operations Manager at Barking in 2011

Promoted to Branch Manager in January 2012

In two years more than doubled the sales per day at the Barking branch.

Just goes to show what hard work, sheer determination and tenacity can achieve in just six short years!!

Sahil Choudhary Graham Howard Dom Cosenza Nicola Garnish John Williams Darren Kimpton

Branch Manager of the Year

To a standing ovation and rapturous applause, Sahil Choudhary was named Branch Manager of the Year and was handed the keys to a brand new Porsche Boxster. Out of a total of 13 finalists selected by the regional managers, Sahil was ultimately chosen by the directors for his phenomenal performance at both the front and back end, delivering outstanding infrastructure and standards within his branch, while achieving a sense of fun with his team despite the huge challenges and demands. Each of the other 12 finalists received a cheque for £1,000. Making the announcement, Andy Hamilton, chief operating officer for ECP, said, “This award is richly deserved. Sahil’s performance has been exemplary. But it’s his customer relationships that have been key to him winning Branch Manager of the Year. Huge congratulations to Sahil and happy driving!” Sahil responded, “I would like to thank all the directors for having faith in me and choosing me as the BM of the year and gifting me the Porsche. It really means a lot to me as I feel my hard work and dedication are being recognised by the company. Two years ago I attended my first BM meeting at NDC and Andy told me, “Sahil, I want to see you on that stage next year”. It took me two years to get to that stage but it’s well worth it!

Reza Bitaraf Harshal Shah Lloyd Pretty

Peter Satchwell Michael O’Neill

Louis Stone

“All this would not have been possible without the great team I have at Barking; Mark Williams, Martin Christmas and Steve Plumb from whom I have learned a great deal.”

Sahil Choudhary

BM Workout

eCommerce The eCommerce workshop discussed the significance, history and background of eCommerce within Euro Car Parts, our existing online financial results, key projects we're currently working on and the future programmes we know will drive our corporate results. Presented by Richard Leigh Head of eCommerce Presented by Richard Leigh, Head of eCommerce

Independent Motor Trade

Each different type of customer is in a very different type of relationship with us. If we consider what motivates them we will be better placed to deal with them more effectively. The IMT workshop examined the network plan to ensure it meets with what customers want from us. Presented by Simon Westwood Regional Sales Director North and Martin Christmas, Regional Sales Director South

Garage Equipment The workshop focused on Total Garage Solutions. For the first time we can now offer the complete proposition of sales, install and service & calibrate – the complete cycle. Presented by Mark Williams, Head of Trading

The ‘Better Together’ conference provided the opportunity for branch managers to take part in workshop sessions aimed at driving up sales and profit. Housed in ‘domes’ built specially for the conference, the workouts focused on eCommerce; Garage Equipment; Independent Motor Trade; and People Dashboard.

People Dashboard People are our greatest but most expensive asset. You don't know what you don't know; You can't do what you don't know; You don't know until you measure; You don't measure what you don't value; You don't value what you don't measure. Communicate and engage with your people. Presented by CEO, Martin Gray

ECP, LKQ Coatings, Autoclimate and Sator form part of a much larger organisation, LKQ Corporation, which currently employs around 8,000 people across Europe and 26,000 employees worldwide – and growing! We thought it would be a good opportunity to introduce you to some of the directors and senior management team so you can put a face to a name. In this newsletter we’re going to focus on our American colleagues, who also presented at the conference. Further profiles on directors will follow in forthcoming editions of this newsletter.

Who’s Who?

Started in the industry as an account executive for a firm processing and selling salvage vehicles through auctions and is now President and CEO of LKQ Corporation. Rob feels very connected to the UK and the people here as he has lived in the country for a few years and admires our integrity. “The marketplace has never offered more opportunities for our company to take market share. We have the best product availability and the finest distribution network in the UK. NO ONE can match our offerings and we simply need to execute our plan and we will continue to gain market share and grow at the levels we have witnessed over the past many years. Quite frankly, the only ones who can stop us are ourselves.”

Started in the industry at Ford Glass Ltd, a subsidiary of Ford Motor Company, before moving into waste management and rising rapidly through the ranks to become Executive Vice President and CFO. John is determined to make LKQ Corporation a $10 billion company. “It’s up to the people in this room to infect your people with the passion and determination to make this happen. We can’t do this on our own. Together we can create a culture to go forth and give people the tools to achieve our goal.”

A veteran of US corporations holding board level positions in industries ranging from energy-from-waste solutions to insurance products, and now Chairman of the Board. Joe has a passion for John Cleese sketches and 007! “LKQ has access to capital markets that our competitors don’t. We need to develop the opportunity now with our traditional supplier base and engage in dialogue with them that through ‘Better Together’ we can help them achieve their ambitions and expectations. It’s not just about price breaks but helping our supply partners take cost out of their systems so both sides win.”

Rob Wagman

John Quinn

Joe Holsten

Exhibition Village

A dedicated Exhibition Village of some 44 supply partners from across Europe was built especially for the event. Their contribution was invaluable in helping to educate and inform the branch managers about the extensive product and service offering we can provide to our customers. All the companies put on a fine display of parts, equipment, technical literature and demonstrations, and a bespoke TECH TALK seminar room was created by LuK to provide more indepth product training sessions. The theme ‘Better Together’ rang through loud and clear when we spoke to all the suppliers on their stands and it was evident they share our passion and determination to continue serving customers to the highest levels and growing the opportunity in the marketplace.

Andy Doodt of ZF Services UK Ltd commented, “We’ve been dealing with ECP for 30 years. The growth has been incredible in that time delivered through mutual understanding and close cooperation. We’re very happy we have put our bet on the right horse. The conference gives us the opportunity to show our products and especially our new products to the branches at the same time because it is difficult to get around all the branches.

The sales teams are more familiar with the Sachs brand but this opportunity enables us to raise awareness of ZF and our products and we can gain valuable feedback, which is very positive. As a result of the conference, we will be doing even more training and that means building even greater awareness of our company.”

Mark Spofforth of ContiTech said, “Everyone is very positive. We’ve met people we’ve not seen for a while and have had the opportunity to talk about our new developments. Congratulations to Stafford Sparshott who has won the jacket in our ‘Guess the length of the belt’ competition.”

Andy Doodt and the ZF Services UK Ltd team

Mark Spofforth and the ContiTech team

Keith Skinner of NTN SNR agreed, “The conference is even bigger and better this year. We’ve organised more workouts at the branches as a result of the networking we’ve been doing. It’s a great opportunity to reinforce the brand and to get a feel of where the business is going and meet senior management. We’re really happy to support the event.”

MANN-FILTER chose the opportunity to conduct a survey of its brand on its stand and was impressed with the participation. Ken Read commented, “We’ve had excellent feedback from the BMs who’ve wanted our brand for years because it adds credibility to their offering. Now they’ve got it and they say they and their customers are in seventh heaven because they love the brand so much. Although we’ve only been supplying the branches for three months, we’ve visited 160 locations, trained over 1,200 sales advisers and the feedback we’ve received has been fantastic, reaffirming that MANN-FILTER is the UK aftermarket’s most wanted filter brand.”

Nigel Morgan of LuK stated, “Our ambition was to touch all delegates with meaningful messages that they can use in the sales arena and take home to the branches that they can then deliver into the workshops. Well done to Simon McKenzie, branch manager of Brixton branch, for winning our iPad competition.”

“FTE is a recent supplier so it was good to meet all the BMs in one place and to get feedback on how we can improve our support through training, education, awareness and relationship building to help them sell more product.”

Christine and Mark from FTE Automotive

MANN-FILTER Stand

The LuK team

NTN SNR enjoying the conference

Steve Horne opened his presentation with an overview of the collision market and the issues facing bodyshops including reduced volumes, safer cares, less mileage and higher insurance excesses. He stated, “Traditionally, the collision repair market has been poorly serviced with poor quality parts. We have the opportunity to connect with the customer and convert them to an alternative quality offering, backed up by leading-edge service. We have great tools like Interceptor and we can offer huge benefits to the customer by processing all opportunities through this state-of-the-art technology to provide them with sustainable management information. We have work to do to understand bodyshops’ processes but we do know that the right part, at the right time, of the right quality and at the right price will enable repairers to make savings and improve their profitability and improve their cycle times. There is a real and untapped opportunity to leverage relationships on both sides and provide parts and paint.”

Richard Steer, managing director of LKQ Coatings, stepped up on stage and reiterated the significant opportunity driven by business relationships, value and choice, customer support and service and availability. He said, “We are the partner of choice for our customers, not the mandated choice. We are the only operator with a game changing proposition, maximising the efficiencies and synergies so we leave value for all partners not just insurers and work providers. We have a compelling proposition. By enhancing mutual opportunities on collision and mechanical parts and leveraging relationships we can provide more profitable growth for bodyshops and for our organisation – and that’s key to our future

success.” The conference was very fortunate to welcome Neil Kirk of Howard Basford to speak on the stage. A very experienced professional from the collision repair industry, Neil gave his insight on how to forge winning relationships. He started off by saying there is a £2 billion parts opportunity in the collision market and ECP today has the best proposition to respond to this untapped market. To achieve this he said, “You must really understand the market and the commercials. Understand bodyshop processes and the way the bodyshop selects alternative parts, and understand work providers. Be curious about how you can help your customers. Ask repairers to spend time showing you and the team how the bodyshop operates. Build your offer into their processes. Interceptor is a valuable tool but does it work in the best possible way for the bodyshop? Don’t impose it, discuss what would work best for the repairer’s business.

Collision & Coatings – Customer is King

One of the most visited websites in the world is Google, and the 2014 Branch Manager Sales Conference was delighted to invite UK representatives to the stage to gain a greater understanding of the world of Google. Introducing the speakers, Chris Barella, eCommerce director of ECP, said, “When I first joined ECP 14 years ago we had just opened Leeds (branch 15). Today, I am standing in front of almost 400 people. What an incredible achievement and something you should all be proud of. I’m delighted to welcome Alex Lowe and Scott Sinclair of Google, who will give us an amazing insight into the future of online eCommerce.”

During a fascinating presentation, the audience was treated to some mind-boggling statistics, and by 2020 it is predicted that out of the global population of around 8 billion people, 100% of them will be online due to the accessibility and affordability of devices. The company took us through some of its incredible initiatives including Google Glass; Google Loon, a project that will enable internet access into some of the most remote places in the world by using air balloons that whizz around in the Jetstream; and the use of Google maps instore, which will bring the best of online and instore together, taking the shop to the customer with unlimited inventory. Richard Leigh, head of eCommerce commented, “From an eCommerce perspective, the Branch Manager’s Conference gave us the opportunity to develop the relationship with our wider team, and therefore ensure that we discuss their customer requirements to simplify purchasing Online. Having Google presenting in some detail on future eCommerce capabilities showed the way that the market is changing purchasing habits for an enhanced experience that favours convenience and with the benefit of Click and Collect plus the value this brings both to our customers and to us, this endorses the message that we need to ensure we provide an outstanding service first time, everytime whether it’s a trade or retail customer. I look forward to seeing both revenues, margin and collaboration for all branches increase as a direct result of the conference and I know that eCommerce will have a significant element in that essential growth.”

From left to right Richard Leigh, Chris

Barella, Rishi Chhaniara, Patrick McDonnell)

Chris Barella eCommerce director of ECP

Back to the Future with Google

Getting into the DNA of the bodyshop is vital. If you offer reliable good quality products at great prices and deliver quickly you will automatically be a referral. Issue credit notes promptly, as this causes friction, and when things go wrong, don’t hide, view them as an opportunity to be the partner of choice.”

From left to right: Steve Horne, Neil Kirk, Richard Steer

Sator keeps moving forward

Hans Kruijer, financial director for Sator Group, gave an overview of the business, explaining, “Our brand is underpinned by the promise that as long as the company keeps bringing new ideas it will keep moving forward. Buoyed by this philosophy, the company has been tasked by LKQ Corporation with changing from a 3-step to a 2-step distribution model, which will see us grow our locations and change the face of the marketplace. In the words of one of our business partners, ‘We’ll be making money while other people sleep.’.”

The Magnificent 7

Pete Brookes of Sheffield and Naveed Quereshi of Crawley branches are the winners of Loctite's 'The Magnificent 7' classic cars experience at Heyford Park in June, courtesy of Henkel.

Competition winners

ContiTech ‘guess the belt length’ competition

ContiTech would like to announce the winner of the guess the belt length competition held at last week’s ECP branch manager conference. The belt was measured at 1401 mm and the closest guess was Stafford Sparshott of Maidenhead branch, the prize, a ContiTech sports jacket will be sent directly to the branch. It was interesting to watch, over the weekend, the different approaches to this task, some mangers opted for a wild guess whilst others used arms, feet, other display belts or anything else close at hand to try to judge the length accurately. What surprised us was the variation in guesses and how far away many of the guesses were, when we realised how wild some of the guesses were we quickly decided to offer a second prize so the two branch managers who were furthest away from the correct length will each received a ContiTech belt length gauge for their branch, the prizes will soon be on their way to Medway and Gravesend branches. Finally, Mark and Doug would like to thank all of the ECP staff who took the time to come and say hello to us at the conference; it was a great event and one where we are very happy to participate.

“Every time I come to the UK, I plan on trying to motivate you to higher levels and I always go home realizing that this is exactly what you do to me.” Rob Wagman

“It was the first one that I have attended and I really enjoyed the whole experience. I thought it was really well organized and personally gained a lot from the event, from meeting suppliers to networking with the other managers, and I also found the workshops beneficial.” Peter Lamb, editorial manager, ADS

The conference was informative, relaxing , refreshing and blew away many of our colleagues minds with the phenomenon that is LKQ and ECP. I also thank you for the very open and entertaining way you connected with my Branch Managers, they thoroughly enjoyed that…! Colin Cottrell, regional sales manager ECP

“Everyone came away with some thoughts and ideas about how they can take ownership and accountability to grow and improve their businesses with the information they had gained.” Peter Grech, regional sales manager, ECP

"A very positive and engaged crowd. By the end of the first day everyone understood there was an enormous amount of untapped branch sales potential on the collision side of the business - and by day two they were already planning how they were going to get it!"

Ian Beasley, Operations Manager, Autoclimate

Dean Leslie and the Milwaukee Team

Andy and his RSMs

We all can easily get caught up in our own little world every day forgetting that there are many support functions and colleagues at other branches who are not only in the same boat but can actually help us all achieve better results when we share ideas, ask for help and do things “better together” Tony Shearer Head of Operations

The recruitment and HR team. From left to right:

Andrea Harriss / Lisa Goodley / Barry Freedman / Jo Conron / Rosanna Kinley / Sophie Ashley / John

Powell / Melanie Kilburn / Simon Lane / Martin Gray / Liz Hopwood /Zoe Hampson / Lucy Orchiston /

Rebecca Causey

From left to right Mark Williams, Richard Leigh, Andy Hamilton, Richard Swann, Tony Shearer and Anthony McAteer

“Probably the best recruitment team in the world. It works tirelessly to recruit for head office, new and existing branches and LKQ Coatings, offering a unique service that is second to none.” Everyone in the network will recognise a face..

“I attended only on the Saturday and to be honest I was completely blown away by it all. I also enjoyed meeting other branch managers in my region and gaining a lot of information that I require to move the Chesterfield branch forward.” Newly promoted BM, Anastasia Regan, Chesterfield

“Thank you for the opportunity to present TMD at your Sales Manager Conference. Carl and the whole team put in a lot of effort and report very enthusiastically a positive response from the sales team at ECP. It seems that 2014 and onwards will be a very exciting time for TMD and LKQ/ECP, we are very much looking forward to meeting the challenges and opportunities with you head on, in the very positive and open spirit of partnership between our companies.” David Baines, TMD Friction

1

Ship ahoy!!!

One of the highlights of the weekend was the Saturday evening aboard the luxury River Thames yacht, the Silver Sturgeon. Departing from Savoy Pier, travelling up-river to Westminster before heading down to Greenwich, the delegates enjoyed an open-air glass bar and Jamie Oliver’s top-class catering, while taking in London’s famous landmarks, including the Houses of Parliament, The National Theatre, Cleopatra’s Needle, The Savoy Hotel, The Millennium Bridge, The Monument, HMS Belfast and the Cutty Sark. With plenty more opportunity to mingle and network with ECP colleagues, directors and representatives from LKQ, Autoclimate, Sator and LKQ Coatings, a great time was had by all.

Rob Wagman with Sukhpal Singh Ahluwalia