As we discussed in the Reader's Choice Roundtable detailed in the special section in this issue, collision repairers and their OEM suppliers are partners; their success depends on the health of the entire collision repair ecosystem.

About two years ago, I was attending an industry conference and looking around the room at the various stakeholders represented. OEMs were there. Software companies were there. Collision repair shops were there. Insurance companies were there. As I thought about who was missing, the first obvious answer was the consumer — the most important stakeholder and the person we should ultimately be considering whenever we gather as an industry.

The other group I noticed was absent was wholesale parts vendors. That stood out to me because they play a critical role in the collision repair ecosystem, yet they often have little opportunity to share their perspective. They are frequently required to adapt to the software platforms and business requirements imposed by others in the industry, but their challenges and concerns are rarely part of the broader conversation.

That realization led me to begin working with OEM partners, including Subaru, Nissan, Infiniti, BMW, and others, to conduct wholesale parts manager workshops across the country. Over the last two years, these workshops have brought together wholesale parts managers, certified repair facilities, and OEM representatives to discuss their respective perspectives and challenges.

Building Understanding Between Stakeholders

The purpose of these meetings has been simple: help each group better understand the others.

We discuss the challenges faced by wholesalers, the expectations of repair facilities, and the objectives of OEMs. By bringing everyone together, participants gain insight into issues they may not otherwise consider.

For me, the experience has been eye-opening. One of the biggest takeaways has been a greater appreciation for the pressures facing wholesale parts departments. In their effort to remain competitive and sell more OEM parts, wholesalers often face shrinking margins. At the same time, rising fuel costs, increased delivery expenses, and staffing costs continue to affect their operations.

Returns create another significant burden. When some shops return 15% of their parts, wholesalers must dedicate additional resources to arrange pickups and process the associated administrative work. These are operational challenges that many outside the wholesale environment may not fully recognize.

Lessons From My Own Shops

This topic reminded me of a practice I used when I owned collision repair facilities. Once or twice each year, I hosted what I called a Wholesale Parts Managers Workshop.

I would invite representatives from all of my primary OEM vendors — Toyota, Audi, GM, and others — to a luncheon. I would share with them what was going on in the local market and throughout the industry and facilitate an open discussion.

One of the key questions I would ask was: What can I do to help you get the right part to me the first time? I would also ask: What can I do to become your best-in-class wholesale parts customer?

Those conversations were valuable because, unlike collision repair businesses, wholesale parts managers representing different OEM brands are not direct competitors. A Toyota dealer is not competing with a GM dealer for the same fender. As a result, they were often willing to share ideas and best practices with one another.

Many of them told me they had never been brought together in that way before. Outside of national conferences, they rarely had opportunities to hear how their counterparts at other OEM brands were solving similar challenges. Creating that forum for discussion allowed everyone to learn from one another and fostered stronger relationships throughout the supply chain.