Executive Interview: Fran Labun, Vice President, Sales Group, DENSO Products & Services Americas, Inc. -

Executive Interview: Fran Labun, Vice President, Sales Group, DENSO Products & Services Americas, Inc.

Fran Labun is vice president of the Sales Group for DENSO Products and Services Americas, Inc., the Long Beach-based affiliate of Japan-based DENSO Corporation. He oversees automotive aftermarket and OES sales for the Americas; U.S., Canada, Mexico, Latin and South Americas. Labun also oversees the product development and sales for Heavy Duty OES and aftermarket channels and directs the DENSO non-automotive product lines for robotics, heat management and hand scanners.

Fran Labun is vice president of the Sales Group for DENSO Products and Services Americas, Inc., the Long Beach-based affiliate of Japan-based DENSO Corporation. He oversees automotive aftermarket and OES sales for the Americas; U.S., Canada, Mexico, Latin and South Americas. Labun also oversees the product development and sales for Heavy Duty OES and aftermarket channels and directs the DENSO non-automotive product lines for robotics, heat management and hand scanners.

Can you provide an example of how one of your leading products/brands is evolving to meet the needs of today’s shop professionals?
According to Automotive News, DENSO is the 2nd largest automotive supplier in the world. With Fiscal Year 2012 annual sales of more than $38 billion, DENSO has the stability, strength and OE-level quality that today’s professional installers can rely on now and in the future.  We are in it for the long-haul! 

Our Aftermarket business began in 1982 with one product – spark plugs.  Today, we have more than 20 aftermarket products under the DENSO “First Time Fit” brand including A/C compressors, starters, oxygen sensors, alternators, fuel pumps, wiper blades, oil, air and cabin air filters, expansion valves, receiver/driers, condensers, ignition wires, ­relays, direct ignition coils, fuel injectors, MAF sensors, radiators and evaporators.

“First Time Fit” means that because of our OE strength and heritage, the part is guaranteed to fit right the first time, saving the shop owner time and money with fewer comebacks.  That also means less time for the technician to make modifications or adjustments and also only having to do the job once; protecting the shop owners ­reputation with their customers ­because the customer trusts the shop and the parts they install.

With even more aftermarket products slated to launch in the near future, it is an exciting time for DENSO’s aftermarket business … and that benefits the shop owner and professional installer by providing a wide array of product choices for their business and their customers.

How does a leading ­manufacturer maintain the strength of its high-quality, branded products in an increasingly price-driven market?
Competition is good! It gives our company a chance to shine. We think that when you compare DENSO with other product choices available, we offer an excellent value. There is a Japanese word, “Kaizen” which means continuous improvement. DENSO ­corporate culture strongly believes in this philosophy and looks for ways to ­continuously improve our product, ­increase efficiencies and reduce costs to provide a better value for our ­customers.

Discuss the “My DENSO Rewards” program and how distributors and techs can reap the benefits.
The “My DENSO Rewards” program was launched in July, 2013 and its ­purpose is to provide an incentive or ­“rewards” program for WDs, jobbers, shop owners, counter people and ­professional installers to earn award points by selling the DENSO line of cabin air filters and wiper blades. We plan to add additional products to the program in the very near future. Those who sign up for the program will earn points and have a wide range of items to choose from based on the number of points they earn. We want shop owners and professional technicians to be aware that in addition to more technical components such as A/C compressors and alternators, DENSO offers high-quality maintenance products such as filters and wiper blades that they can present to their customers as a O.E. quality option. To sign up, go to www.mydensorewards.com.

Discuss recent company expansions and how they help your company better serve your customers.

On April 1, 2013 we announced the completion of our reorganization under a new name — DENSO Products and Services Americas, Inc. The establishment of our Aftermarket Business Headquarters for the Americas in Long Beach, CA, was first announced on October 31, 2012 at the Automotive Aftermarket Product Exhibition (AAPEX) show in Las Vegas. 

As part of the reorganization, American ­Industrial Manufacturing Services in Murrieta, CA, a DENSO group company that produces remanufactured products, ­including starters and alternators, and ­repairs common rail diesel fuel injectors is combined with DENSO Sales ­California, Inc. in Long Beach, CA.

This change enhances our aftermarket operations in The Americas and is aligned with the global aftermarket growth plans we announced last year when we introduced DENSO’s Aftermarket Business Unit in Japan.

The new organization will be ­responsible for engineering, procurement, sales, service and planning for aftermarket, heavy duty, OES and non-automotive products. DENSO has identified these segments for expansion in the Americas with the goal to provide even more quality products and services to our customers.

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The True Cost Of Comebacks

Comebacks are a hot topic today. You need to track all comebacks, determine the reason (tech error, part error, training issue, other) and then calculate the true cost of the comeback.

By Joe Marconi of Elite
Comebacks are a hot topic today. You need to track
all comebacks, determine the reason (tech error, part error, training issue,
other) and then calculate the true cost of the comeback.
Here are a few things to consider:
• The loss of time when performing the comeback; time that the tech can use to
perform other work and generate profit;
• The misc costs, such as overhead costs, supplies, cleaners, etc.;
• Towing costs, rental, etc.;
• Cost to morale;
• Reputation damage; and
• Reduction to your profit margin.
For every part issue, you need to
inform your supplier. Sit down with suppliers on a regular basis. Don’t return defective
parts until you have listed the parts, and maintain a report. Document
everything.
Part issues are increasing. Every shop
owner I speak to is frustrated over this.
Remember, comebacks kill your bottom
line. The more comebacks you have, the more they’re killing your profits.
This article was contributed by Joe Marconi.
Joe is one of the 1-on-1 business coaches who helps shop owners through
the Elite Coaching Program, and is the
co-founder of autoshopowner.com.

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