Napa Auto Parts 2004 Annual Report Download - page 10

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Motion represents a wide range of world-class manufacturers
and offers an extensive product selection with customer access
to nearly three million quality parts. The Company serves over
150,000 customers in virtually all industry segments, including
the automotive, chemical, food and beverage, wood and lumber,
iron and steel, pulp and paper, and pharmaceutical industries.
Motion Industries is dedicated to “Delivering the Difference,” a
commitment to exceed customers’ expectations by providing
superior service. The 1,400 sales representatives and 196 field
product specialists provide customers with engineering data,
cost savings solutions, product application and on-site technical
assistance. To meet customers’ critical requirements, Motion
offers 24/7/365 product delivery and service from its distribution
facilities. The Company’s sophisticated inventory management
system and logistical expertise allow for shipment within
24 hours on demand.
Motion Industries had a very good year in 2004, reaching
more than $2.5 billion in sales and achieving an 11% increase
in revenues compared to 2003. Initiatives to expand our product
coverage and explore new MRO opportunities contributed to
our successful year, as did the improved state of our customer
base. Growth in the industrial markets, as evidenced by positive
trends in the manufacturing industrial production and factory
utilization indices, increased the demand at Motion across nearly
all industry segments served by Company.
Growth Initiatives
Motion Industries’ 2004 strategic plan was developed to focus
management on sales and earnings growth as well as opera-
tional excellence. In addition to our usual emphasis on new
and expanded product offerings, we worked closely with our
key suppliers to develop innovative marketing programs. We
emphasized our service offerings such as asset repair tracking
and product and industrial maintenance training for customers.
We also continued to develop our internal systems and
e-business capabilities. Each of these initiatives help distinguish
Motion from the competition.
Furthermore, Motion Industries’ Operational Excellence Program
has produced more efficient and effective operations across
the Company. With this initiative, cross-functional teams review
the organization at every level to measure its business processes
and related costs. This has helped us identify opportunities
to improve our processes, resulting in enhanced efficiencies
and increased capabilities for “Delivering the Difference” to
our customers.
We continue to expand our product offering to better serve our
customers’ many parts requirements. We now offer industrial
supplies through our MI Industrial group, and industrial
automation products and expertise to manufacturers shifting
to automated facilities. In addition, as Motion seizes new MRO
opportunities with Utilities, Healthcare facilities and Educational
institutions, among others, we are challenging ourselves to
anticipate the products required to serve these industries.
As part of our commitment to grow sales, we teamed with our
suppliers to develop marketing programs, such as customized
monthly and quarterly programs to promote specific products.
This value-added sales approach proved beneficial in generating
revenues in 2004 and will be an on-going part of our sales
strategy in the future. We also emphasized our specialized
service offerings such as the Asset and Repair Tracking program
(ART) designed to track customers’ warranty and repair
information. ART adds value by allowing our customers to
streamline their entire repair process and track its status with
customized, on-line reporting capabilities.
Motion Industries also enhanced its internal systems and
e-business capabilities to improve its results in 2004. The
Company continued the installation of a state-of-the-art
Warehouse Management System into additional distribution
centers and expects to complete this project in 2005. The new
system has increased the efficiency, accuracy and productivity
of our warehouse operations, including receiving, stocking,
picking and shipping, as well as physical inventory counts.
Motion’s e-business capabilities are continually developed to
improve service, reduce cycle time, improve logistical efficiencies
and deliver superior value. For example, on a 24/7/365 basis,
our customers may access MotionMRO.com to order parts,
check stock, get quotes and determine account and shipping
status. The Company also offers customer hosted electronic
catalogs providing customer-specific content and pricing
information. The Electronic Data Interchange (EDI) automated
business process continues to set the standard for business-
to-business transactions and it is fully integrated into Motion’s
order fulfillment system, from quotation to receipt of payment.
Finally, looking for efficiencies up the supply chain, we devel-
oped MiSupplierConnect to link Motion to its key suppliers
for real-time, web-enabled access to pricing, availability and
order status. Our enhanced internal systems and e-business
capabilities have benefited the Company through reduced
costs and improved service.
Looking Ahead
The improved manufacturing economy currently benefiting our
customer base across virtually all industry segments is expected
to remain strong in 2005, indicating a positive outlook for Motion
Industries. Through its initiatives to grow sales and earnings
and achieve operational excellence, Motion is positioned to
continue its growth in the industrial markets and take advantage
of current opportunities, as well as those it creates.
Motion Industries is a leading North American industrial distributor of bearings;
mechanical, industrial automation, electrical, pneumatic and hydraulic replacement
parts; hose and rubber products; and industrial supply products. With over 5,000
employees, the Company operates more than 460 locations, including 418 branches,
9 distribution centers and 34 service centers throughout the U.S. and Canada.