Napa Auto Parts 2005 Annual Report Download - page 11

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We have strengthened our sales growth effort through
joint supplier sales and marketing initiatives to target
and promote specific product categories. Examples include
industry segment product promotions, TargetingMRO
programs and quarterly problem solver publications. These
programs are strategically developed and executed as a
joint initiative with Motion suppliers and are created to
meet specific customers’ needs. We are encouraged by the
success of these programs and their potential to generate
additional revenue growth in the future.
In another initiative to grow our sales, in December 2005
we acquired Voorhies Supply Company, a Louisiana supplier
of industrial parts and supplies. The acquisition is a contin-
uation of our expansion plans in this region. We consider
additional acquisitions of this type a part of our future
growth strategy.
At Motion, we also continue to expand our product offering
to better serve our current customers and gain coverage for
potential new MRO markets. Recently, we invested more
heavily in product categories such as material handling
lines, industrial supplies and industrial automation products.
In addition, with our added coverage, we are pursuing sales
opportunities in new markets such as waste water treatment,
power generation, municipalities, and transportation and
ports, among others.
We continue to emphasize our specialized service offerings
such as the Cost Management Processes (CMP), Asset and
Repair Tracking program (ART), Storeroom and Replenishment
Tracking (START) and Motion Institute Training Center. CMP
delivers plant solutions through cost savings and
productivity programs. ART is designed to track customers’
warranty and repair information and adds value by allow-
ing our customers to streamline their entire repair process
and track its status with customized, on-line reporting
capabilities. START adds value by providing significant
transactional efficiencies to plant storeroom management.
During 2005, the Motion Institute successfully trained
over 4,000 customers and employees in current industrial
technology.
The Operational Excellence program at Motion Industries
supports our growth initiatives through more efficient and
effective operations across the Company. This on-going
initiative serves to improve efficiencies, reduce costs and
enhance overall performance via increased productivity.
The end results are improved profitability and increased
capabilities for “Delivering the Difference” to our customers.
For example, Motion’s internal systems and e-business
capabilities have improved under this program. We have
completed the installation of a warehouse management
system and as a result we are achieving increased efficiency,
accuracy and productivity in our warehouse operations.
In addition, our e-business capabilities such as
MotionIndustries.com and MiSupplierConnect continue
to improve and, today, offer more sophisticated customer
and supplier applications.
OPPORTUNITIES IN 2006
Our outlook is positive for 2006, as the favorable economic
conditions currently benefiting our manufacturing customer
base are expected to continue. We will continue to position
Motion Industries as a globally-competitive supplier to the
MRO industrial market. We remain focused on growing
sales and earnings and achieving operational excellence.
We will do this with on-going emphasis on many of the
initiatives discussed above and through special attention
to our valued supplier and customer relationships. Motion
will “Deliver the Difference.”
POSITIVE INDUSTRY TRENDS
➔Strong manufacturing industrial production numbers
➔Strong capacity utilization rates
➔Healthy capital expenditure budgets and projected capital expansion
➔Recent increase in manufacturing employment in U.S.
MOTION INDUSTRIES