Michael Beaudoin, Executive Vice President | ALLPRO
How did business change for ALLPRO in 2022 compared to 2021?
There were a tremendous amount of price increases that made going through the normal vetting process impossible. In addition, there were also product shortages that required larger more strategic purchases to ensure there were products to offer the group. Last year was a much “grittier” year than 2021, when sales were very robust and keeping up with demand was the main issue.
What were some challenges in 2022 and what were the solutions ALLPRO has taken to address them?
The challenges were to make smart purchases to acquire goods that were in demand but on allocation and then manage through a tremendous amount of backorders as a result. Managing the price increases was also a challenge. It led to an opportunity for price protection purchases although we had to consider cash flow.
What types of operational investments do you anticipate making in 2023 and what will be the impact on your customers?
We are in the process of launching a new platform with Enable that will provide better tracking of the Volume Incentive Program (rebates) along with a better reporting system creating a dashboard for members and suppliers to track. We are also exploring launching a vendor invoice portal to allow suppliers more visibility to invoicing with the group.
How are you helping your members address critical industry issues including technology, business transition and employee engagement?
We routinely invest in our own technology such as the latest SAP, new connectors, servers and all the necessary hardware. We also utilize our shows to allow our technology suppliers to showcase their new products and technologies.
At our stockholders’ meeting in the fall, we offered two popular seminars. One focused on succession planning to help members better plan for the future. In addition, succession planning is a routine topic for discussion at our Next Gen group meetings where succession planning is the most critical. Another seminar, called 5 Tips to Energize Your Employees, was the most popular breakout session at the stockholders’ event.
What are your projections for 2023 for the industry and for your organization?
I am budgeting a 5% increase next year in dollars which is basically flat considering price increases. The group had explosive growth over the past four years, and maintaining the market share gains in an era where other channels have gained supply will be a challenge. I anticipate the paint industry also being close to flat in 2023 given the slowdown in housing and the uncertainty in the economy.
To read our complete 2023 Market Measure, click here.
