Napa Auto Parts 2003 Annual Report Download - page 9

also suffered from lost volume incentive opportunities and general
pricing pressures common in weak markets.
Despite the challenges we faced in 2003, we are encouraged by
the improving production and utilization trends reported for the
manufacturing sector in the 4th quarter. We are also encouraged
by our growth in major industrial segments such as Food and
Chemicals among others. In addition, Motion is targeting new
MRO opportunities with Utilities, Automotive transplants, the
Delivery Industry (USPS, UPS, FedEx, etc.), and even large
Healthcare facilities and Educational institutions.
PRODUCT OFFERINGS
Inventory management and parts distribution remain Motion
Industries’ core competencies. We stock the inventory our
customers need so that we can better serve their many parts
requirements. Our parts database includes the brand names our
customers know and trust for quality and performance, such as
SKF, Rockwell, Gates, Emerson, Falk, SMC, and Eaton.
In addition to our traditional product inventory, we now offer
industrial supplies through our Mi Industrial group, a comprehensive
hydraulics line, and an enhanced pneumatics product package.
We also offer industrial automation products and expertise to
serve those manufacturers shifting from labor intensive operations
to automated facilities. We are committed to being our customers’
complete source for our product categories.
INCREASED EFFICIENCIES
Motion Industries has recognized the need to challenge its business
processes and identify process opportunities for more efficient
and effective operations. In 2003, Motion formalized this exercise
by implementing an Operational Excellence Initiative. The goals
of this initiative are to improve efficiencies, reduce costs, and
enhance performance, expanding our capabilities in delivering
value to customers as we fulfill their MRO requirements.
Installation of a state-of-the-art Warehouse Management System
in our U.S. distribution centers has resulted in many benefits.
These include increased efficiency and productivity along with
reduced costs in all our warehouse operations. The new system
ensures that our branches are replenished on-time with the
inventory our customers need.
Motion Industries’ e-business technologies have greatly increased
inventory visibility across the supply chain. These technologies
have also improved logistical efficiency, reduced costs, and
increased procurement speed. Examples include:
•MiSupplierConnect. Links our branches to the complete supply
chain while allowing suppliers to view end user demand for
improved manufacturing forecasts
•MotionMRO. Allows customers access to pricing, availability,
parts information, ordering, expediting, and account status.
SPECIALIZED PERSONNEL
Motion Industries has more than 1,000 highly trained Account
Managers who make daily on-site service calls, providing parts and
service solutions as well as cost savings consultation. In addition,
nearly 200 Applications Specialists offer an extra level of technical
assistance. Our nearly 3,000 Customer Support personnel received
more than 36,000 hours of formal training last year. All personnel
comply with ISO certified quality processes and provide around
the clock, year-round parts availability.
Motion Industries has invested millions of dollars in facilities,
machining and testing equipment, and technicians to accommodate
our customers’ repair and product requirements. This investment
includes 240 trained and certified service technicians who provide
repair and fabrication services for mechanical, fluid power, and
hose products.
The Motion Institute of Industrial Education offers our employees
and customers the training required to be leaders in the industry.
Courses and programs include:
•Classes accredited by the American Council on Education (ACE)
•A Management Trainee Program and continuing education
classes to develop knowledge and skills in sales, management,
and operations
•Product training, industry specific process training, and
industrial certification programs for employees and customers.
LOOKING AHEAD
Motion Industries has established a market leading product and
service offering that we continue to expand each year. Our people,
products and processes distinguish Motion from the competition
and are the foundation for our growth and success in the future.
7
INDUSTRIAL PARTS GROUP
NET SALES
in billions of dollars
INDUSTRIAL PARTS GROUP
27%
NET SALES BY
SEGMENT OF GPC
99 00 01 02 03
2.34 2.23 2.25 2.25
2.16