CEO's Blog

13 Oct

Leadership in Distribution: It’s Not About Trucks or Technology – It’s About People

By Robert Coolidge, President – Encompass Supply Chain Solutions, PartsTown

Leadership in distribution isn’t about trucks, warehouses, or fancy systems; it’s about people. After more than 35 years in OEM parts distribution and supply chain, I’ve learned that the leaders who win don’t just manage
they adapt, invest, innovate, and build relationships that last.  Most importantly, they treat leadership as a responsibility, not a title.  These lessons have shaped my career and continue to guide how I lead at Encompass and Parts Town today.

My journey began in the family business, coding ERP systems for Vance Baldwin Electronics. We were a small local distributor, and grit, hustle, and customer obsession took us national. Later, with Encompass, I helped shape one of the largest OEM distributors in North America. That path included private equity partnerships, technology revolutions, and a few programs that could have gone sideways if not for the right people. Through every challenge and success, one truth has remained constant: distribution succeeds because of people, their passion, collaboration, and resilience.

Change is constant in this industry. From evolving technologies and shifting customer expectations to global disruptions, leaders can’t afford to resist it
 they must embrace it. The best way to lead through change is by providing clarity, setting direction, and building trust.   When teams understand the “why,” they rally behind the “how.”

Processes and technology can scale a company, but only people make it thrive. Investing in training, culture, and development creates teams that think like owners and solve problems with creativity and urgency no manual can replicate. Great leaders encourage their people to think like entrepreneurs to take the initiative, challenge assumptions, and look for better ways to serve customers and grow the business. When team members are empowered to think beyond their job descriptions, innovation accelerates, and accountability deepens.   Empowered people build great companies.

Innovation is everywhere such as AI, automation, robotics, and predictive analytics, but none of it replaces the basics: accuracy, speed, and service. The companies that win are those that innovate without losing sight of fundamentals. Customers remember how well you deliver; not what technology you used to do it.

Trust, transparency, and accountability drive long-term relationships. Be honest, do the right thing even when it’s hard, and you’ll turn customers into partners and partners into allies. That’s how you build a business that endures.

Leadership itself is not a title but a responsibility. It’s about stepping forward first and creating an environment where others succeed. Great leaders listen, empower, and elevate their teams. They promote a culture where everyone feels ownership — where people are trusted to make decisions, think creatively, and act with the company’s best interests in mind.   Titles may open doors, but actions inspire people to follow.

Looking ahead, distribution is evolving faster than ever. Leaders now have the opportunity not just to build companies but to shape how products and services reach the world.  The lesson that matters most is simple: leadership will always be about people first, strategy second, and legacy always. Warehouses and systems will evolve, but leadership that empowers and inspires will always endure.

Leadership isn’t only about what you achieve — it’s about how you help others achieve theirs. One of the greatest privileges of leading is the chance to pass it forward: sharing lessons, opening doors, and creating opportunities for others to thrive. By mentoring, celebrating wins, and investing in people’s potential, leaders create cultures where growth and success are shared.

At Encompass and Parts Town, we don’t just move parts – we build culture, drive innovation, and invest in people. I’m deeply grateful for those I’ve worked alongside while building something remarkable; not just a great business, but a community grounded in trust, teamwork, and purpose. Because great companies don’t just move products — they move people.

#Leadership #SupplyChain #Distribution #PartsTown #Encompass #OEMParts #HomeApplianceParts #HVACparts

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22 Jul

AI Is Changing the Game in Parts Distribution!

Artificial intelligence is no longer a futuristic idea; it’s rapidly becoming embedded in the infrastructure of global commerce. For the home appliance and HVAC parts industry, this marks a turning point. AI is not just changing how we search for parts; it’s reshaping how problems are diagnosed, repairs are guided, and how customers expect information to be delivered. Encompass is not only adapting to this shift; we are helping define it.

Across our industry, many organizations use AI for surface-level gains: automating basic service responses, generating generic content, or suggesting simple product pairings. These initiatives offer short-term value, but they miss the larger opportunity. At Encompass, we believe the true value of AI is unlocked not by using it, but by becoming the source it learns from.

Most AI tools in use today are built on publicly available data, which means their outputs often sound the same, even across different brands. In a crowded marketplace, this creates commoditization. Differentiation will no longer come from being faster or cheaper; it will come from being the expert that AI systems rely on to make decisions.

This is where Encompass takes a fundamentally different approach. We are building a foundation designed not only to serve human users but also to instruct AI systems, including emerging Large Instruction Models (LIMs), with deep, accurate, and structured content across our catalog, service workflows, technical documentation, and warranty resolution paths.

LIMs represent the next generation of AI tools that don’t just answer questions but perform expert-level tasks by following trusted instructions. They don’t rely on simple keyword matching; they depend on curated instruction sets, manufacturer-specific logic, and structured data. At Encompass, we are actively enriching our catalog and content ecosystem to support this evolution: from comprehensive parts diagrams and compatibility charts to step-by-step troubleshooting flows, service bulletins, installation support, and interactive tools that make complex data consumable by both people and machines.

This matters because user behavior is changing. Consumers, service providers, and field technicians aren’t just typing SKU numbers; they’re asking natural-language questions like, “Why isn’t my LG washer draining?” or “What’s the right board for a 2019 Samsung refrigerator?” When these questions are asked through AI-powered platforms, the systems will look for reliable, well-structured content to provide the answer. If your business hasn’t invested in that content, it’s invisible.

At Encompass, we’ve prioritized becoming visible in these new digital channels, not just through search rankings, but through direct integration into the intelligence layer itself. We’re building the infrastructure that enables AI platforms to point customers, partners, and technicians to us because we are the ones helping them solve the problem.

This approach extends far beyond product listings. We treat our product data, service manuals, return policies, technical support scripts, and even field insights as strategic assets, assets that help power AI-driven decisions. We are structuring this information to be consumed not only by humans but also by the systems that will increasingly guide how service and commerce are conducted.

This also creates a better experience for our customers and OEM partners. By embedding knowledge into the fabric of our ecosystem, whether through API integrations, guided triage modules, or warranty validation tools, we are reducing friction, increasing accuracy, and speeding up resolution time. The result is not just output efficiency, but deeper trust and reliance on Encompass as the single source of truth for service parts and support.

Looking ahead, AI will increasingly determine how service is initiated, how parts are selected, and where consumers and technicians turn for solutions. If your company’s expertise isn’t embedded in that process, you’ll be bypassed. But if you become the source that AI systems are trained on and respond with, your company becomes the digital front door to your entire industry and the gateway consumers and repair dealers.

Encompass is not simply preparing for this future; we are helping to shape it. We are aligning our content, systems, and partnerships to ensure that when someone asks a question, whether it’s typed, spoken, or triggered by a machine, the answer leads back to us.

The companies that will lead in this next chapter are those that stop treating AI as a tool and start treating it as a channel of trust, one that needs to be trained, fed, and guided with precision. That is what Encompass is doing today: not just participating in the AI revolution but building the framework that ensures AI works for our customers, our partners, and the future of service.

Be the source. Set the standard. Lead the industry.

 

For more information, visit www.encompass.com and www.partselect.com

—
Robert Coolidge
President & CEO, Encompass Supply Chain Solutions

 

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24 Apr

Turning Tariffs into Opportunity: How the Trade War Can Boost the Appliance Parts Business

By Robert Coolidge, President & CEO, Encompass Supply Chain Solutions

As global trade tensions escalate and tariffs drive up the cost of finished goods, manufacturers and consumers alike are feeling the squeeze. But amid these economic headwinds lies an often-overlooked opportunity—particularly for the parts and repair industry. At Encompass, we see this as a pivotal moment to redefine the value of repair in the consumer mindset.

Rising Costs Are Redefining Consumer Behavior

With tariffs inflating the price of appliances, electronics, and other imported finished goods, the gap between the cost of repair and replacement continues to widen. Consumers are reassessing discretionary purchases, opting to repair rather than replace when the numbers make sense—and more often than not, they do.

That brand-new refrigerator or flat-screen television doesn’t seem quite so essential when the cost to repair is a fraction of the replacement price. This shift is creating tailwinds for the appliance parts business and paving the way for a more repair-friendly economy.

The Digital DIY Revolution

Technology is also empowering consumers to take repair into their own hands. E-commerce platforms, how-to videos, and detailed parts diagrams are making it easier than ever for consumers to identify, purchase, and install parts themselves.

At Encompass, we’re investing heavily in tools and platforms that simplify the entire repair process—from intuitive search features to technical support that guides consumers every step of the way. The DIY demographic has expanded far beyond hobbyists; today’s consumers are embracing repair with growing confidence and capability.  While DIY is here to stay it’s important for OEMs, Parts Distributors and contractors to promote the benefits of trained, licensed professionals.

OEMs Embrace the Repair Economy

This transformation is not limited to consumers. OEMs are increasingly recognizing the value of supporting extended product lifecycles—not just for cost efficiency, but for sustainability and customer satisfaction. Warranty providers and retailers are also adapting, leaning on supply chain partners like Encompass to streamline part availability and improve repair success rates utilizing OEM original parts.

The result is a repair ecosystem that benefits everyone: manufacturers protect their brand, consumers save money, and the environment avoids unnecessary waste.

Board-Level Repair: A Strategic Advantage for OEMs

A particularly impactful solution within this movement is board repair and core recovery. At Encompass, we work closely with manufacturers under direct engineering oversight to safely repair and recirculate high-value electronic components.

Board repair not only extends the life of products—it also provides a powerful alternative to expensive new part production, reducing exposure to raw material shortages and tariffs. This model supports OEMs in maintaining quality control, minimizing waste, and meeting sustainability goals particularly where parts are no longer available.

Protecting Against Gray Market Threats

Equally important is the protection board repair programs and affordable OEM parts offer against unauthorized gray market parts. Unvetted suppliers can flood the market with substandard components, undermining product performance and eroding brand trust.

Our OEM-certified repair processes ensure every refurbished part meets the contract manufacturers original specifications. This commitment to quality preserves both safety and customer satisfaction while helping manufacturers maintain control over their product ecosystem.  This service is only offered to our OEM partners that are committed to maintaining their products with the utmost quality control.  Visit https://solutions.encompass.com/repair-service/ for more information.

A Greener, More Resilient Supply Chain

Repairing over replacing doesn’t just make financial sense—it’s a critical part of building a greener, more resilient supply chain. By reclaiming and repairing OEM part cores, we reduce e-waste, conserve resources, and support a circular economy.

Tariffs may be disrupting traditional business models, but they also present a chance to realign with smarter, more sustainable strategies.

Looking Ahead

For Encompass and the OEMs, contractors and consumers we serve, the future is bright. Tariffs may be a headwind for finished goods, but they’re a tailwind for repair. This is our opportunity to lead a repair-first movement—where affordability, sustainability, and quality come together to meet the evolving needs of today’s consumers.

We’re just getting started.  For more information, visit www.encompass.com and www.partselect.com

—
Robert Coolidge
President & CEO, Encompass Supply Chain Solutions

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21 Apr

Repairing for a Greener Future Starts with Us

By Robert Coolidge, President & CEO, Encompass Supply Chain Solutions

As Earth Day approaches, we’re reminded that the choices we make today will shape the world we leave for future generations. For leaders across industries, it’s an opportunity to reflect on how we can collectively address the growing environmental challenges of our time. In the replacement parts supply chain, these challenges are particularly pressing.

The rise of a “throwaway” culture has led to an alarming increase in electronic waste. According to the United Nations, the world generates over 50 million metric tons of electronic waste annually, yet only about 20% is recycled properly. The rest is discarded, often improperly, contributing to overflowing landfills, resource depletion, and environmental degradation. While this is a systemic issue, it also presents a profound opportunity to rethink how we approach product life cycles—particularly through the lens of repair versus replacement.

At Encompass, we believe sustainability and operational excellence aren’t mutually exclusive—they are inherently connected. Repairing products, rather than replacing them, has a significant impact on reducing waste, extending the lifecycle of valuable materials, and minimizing the environmental footprint of manufacturing and logistics. This is why we advocate for creating an ecosystem where repair is not just an option but the preferred choice.

However, this shift requires more than just individual actions. It requires a collaborative, industry-wide approach. For repair to become the go-to solution, manufacturers, distributors, service providers, and repair technicians must work together to make repairs more accessible, efficient, and cost-effective. Innovation in product design, increased availability of quality parts, and better logistical coordination can make the repair process smoother and more attractive for consumers and businesses alike.

In addition, data and technology play a pivotal role in this transformation. Smarter forecasting tools, AI-driven inventory management, and predictive analytics can enable a more sustainable, circular supply chain. By leveraging these technologies, we can predict demand more accurately, reduce excess stock, and optimize parts distribution to ensure that repairs happen more quickly and with less environmental impact.

The solution to our environmental challenges lies in collaboration and smart innovation. By investing in technologies that enhance the repair process and fostering partnerships across industries, we can create a sustainable, circular economy that benefits consumers, businesses, and the planet.

Repairing products is not just good for the environment—it’s also good for business. It builds trust with customers, reduces costs, and helps companies stay resilient in an increasingly volatile world. As we look to the future, it’s clear that the circular economy will become an essential part of every industry’s operation.

On Earth Day and every day, we must renew our commitment to sustainability. The choice to repair instead of replacing is a powerful step toward a greener, more resilient future.

—
Robert Coolidge
President & CEO, Encompass Supply Chain Solutions

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11 Mar

Managing Supply Chain Complexities: What Supply Chain Leaders Need to Know About Tariffs, Natural Disasters & Other Disruptions

By Robert Coolidge, President & CEO of Encompass Supply Chain Solutions

In today’s global economy, supply chain disruptions have become an inevitable challenge, impacting efficiency, cost control, and overall business resilience. From tariffs and trade restrictions to natural disasters and geopolitical tensions, supply chain leaders must adopt proactive strategies to mitigate risks and maintain operational stability. For those managing the replacement parts supply chain—such as Encompass Supply Chain Solutions—these challenges are particularly critical, as any delays or shortages can directly affect manufacturers, service providers, and end consumers who rely on timely parts availability. Encompass has built its reputation on adaptability and innovation in supply chain management, ensuring that even in the face of global disruptions, customers continue to receive the support and products they need.

One of the most pressing issues supply chain leaders face today is the imposition of tariffs on imported goods. As trade restrictions fluctuate, companies experience rising costs and supply bottlenecks, which can have a direct impact on profitability and service levels. To navigate these challenges, businesses must diversify their supplier base, negotiate better terms with existing partners, and explore nearshoring or reshoring opportunities to minimize exposure to tariff-affected regions. At Encompass, we continuously monitor tariff regulations and leverage data analytics to assess financial impacts, allowing us to make informed purchasing decisions that protect both our operations and our customers.

Beyond tariffs, natural disasters such as hurricanes, wildfires, and earthquakes pose another major risk to supply chains. To combat these disruptions, leaders must invest in a resilient logistics network, incorporating multi-location warehousing, disaster recovery plans, and contingency supply routes. Encompass has long prioritized risk mitigation by utilizing predictive analytics and AI-driven forecasting to anticipate potential disruptions and allocate resources accordingly. By maintaining flexible contracts with logistics providers, we ensure the ability to pivot quickly when primary distribution channels are affected—an approach that has allowed us to maintain a high level of service even during unforeseen crises.

Geopolitical instability and labor shortages further complicate supply chain operations. As governments enact new trade policies and labor markets shift, businesses must stay agile to avoid supply interruptions. At Encompass, we counter these risks by strengthening our supplier partnerships, investing in automation across our logistics and warehousing operations, and incorporating workforce planning into our broader supply chain strategy. By leveraging a robust supplier vetting process, we reduce our vulnerability to sudden geopolitical shifts, ensuring a steady flow of inventory to meet customer needs.

To stay ahead of disruptions, supply chain leaders must embrace digital transformation. Implementing AI-driven demand forecasting, real-time inventory tracking, and automated procurement systems enhances supply chain visibility and agility. Encompass has been at the forefront of this technological evolution, integrating blockchain for enhanced transaction transparency and utilizing cloud-based platforms for seamless collaboration with suppliers, manufacturers, and customers. Additionally, investing in cybersecurity measures remains a top priority, as supply chain infrastructure is increasingly targeted by cyber threats that could exacerbate existing challenges.

As global disruptions continue to evolve, supply chain resilience has never been more critical. Leaders must focus on diversification, technology adoption, and proactive risk management to create adaptable and efficient networks. At Encompass, we understand that agility is the key to overcoming supply chain complexities, and we remain committed to delivering reliable, innovative solutions that help our partners navigate these ever-changing conditions. By staying informed on trade regulations, investing in disaster preparedness, and optimizing logistics operations, businesses can not only withstand supply chain challenges but also turn them into opportunities for innovation and growth. Through strategic planning and the right mindset, we can transform potential disruptions into competitive advantages that drive long-term success.

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28 Jul

How Innovation Is Reshaping the Future of Home Appliances

The world of home appliances is no longer confined to simple refrigerators and washing machines. Once just “cool buzzwords,” advancements in virtual reality (VR), artificial intelligence (AI), and the Internet of Things (IoT) are reshaping the industry, creating a surge of innovation. Driven by advancements in technology and changing consumer preferences, innovation in the industry will continue to provide unparalleled value to the consumer and open the door for after-sales support.

From Hygiene to Efficiency

The pandemic has undeniably driven a surge in home sanitation. Products utilizing steam and UV light technology have become readily available, reflecting a heightened awareness of household cleanliness. This has translated to families adopting new hygiene practices, such as removing shoes upon entering the home, wiping down surfaces more frequently, and seeking out disinfecting cleaning supplies.

This shift in consumer behavior represents a significant market trend, prompting the industry to re-evaluate the importance of maintaining a clean and healthy home and workplace environment. Ultimately, prioritizing sanitation provides invaluable peace of mind, safeguarding the well-being of ourselves and our loved ones.

Alongside the surge in cleanliness, the all-in-one washer-dryer technology has undergone significant advancements, offering improved functionality and efficiency. While these products aren’t new, the latest models offer superior mechanics compared to previous iterations, significantly reducing laundry time. Additionally, they contribute to lower utility consumption, potentially saving families hundreds of dollars annually.

On-Demand Appliance Parts

Emerging technologies like 3D printing offer promising potential for the home appliance service parts ecosystem. While home-based printing may not be feasible due to complex design requirements, manufacturers and distributors could utilize 3D printing to create replacement parts on demand, particularly for plastic components like gears, knobs, or handles.

This could potentially lead to faster and more efficient repairs. As 3D printing technology continues to evolve, its integration into the service parts ecosystem offers an exciting and viable option for the future.

From Innovation to Trust

The influx of these new trends and products entering the market highlights the growing importance of robust after-sales support. Imagine a customer purchasing a product, the product that your team has put hours, months, or years into creating, and that product fails – how will the company respond? Customers will be more likely to remain loyal if they feel supported by a manufacturer who takes responsibility for their product’s performance and offers prompt and effective solutions in case of malfunctions.

Strong after-sales support, including readily available replacement parts, qualified technicians, and efficient service solutions, is critical in building customer loyalty and brand reputation. A positive service experience can significantly enhance brand perception and foster customer trust, while a negative one can easily damage it.

Navigating the Future

As the home appliance industry continues to evolve alongside technological advancements and shifting consumer preferences, the future promises exciting possibilities. However, as the industry welcomes new advancements, prioritizing robust after-sales support remains crucial.

By embracing these advancements and prioritizing customer experience, the home appliance industry will be able to unlock a future of innovation and consumer satisfaction.

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29 Feb

CES 2024: Innovation is Back

Robert Coolidge, CEO

CES 2024: Innovation is Back

I have been attending CES for the past 15 years, and we have seen the same, if not very similar things for all these years, so much so that it seems quite rote. CES 2024 was a very different story
the show truly rebounded from the COVID years, and innovation is back in full force.
CES is a portal into the future; it’s a portal into where we need to go as a company and in the residential environment. VR, AI, IoT – used to be just cool buzzwords. They are now very much here in the present and the future. Manufacturers, as well as consumers, are excitedly embracing this future. Those pushing the envelope will be the innovation leaders, challenging others to dig deep to remain relevant. At the core of all of this is the question: how will this innovation provide value to the consumer and open the door for after-sales support?

Using Technology for Cleaner and Safer Homes

No doubt a byproduct of the pandemic, home sanitization products were abundant, utilizing steam and UV light technology. This has led to families taking more notice of cleaning and sanitizing their homes, from removing shoes upon entering their homes, to wiping down doorknobs and other surfaces, to disinfecting and finding disinfecting cleaning supplies, all of which will be an important factor in the marketplace. It has given us food for thought and new insight into the cleanliness of our homes and business places. It is imperative that we have peace of mind, especially when it comes to our health and that of our families.
The all-in-one technology has also massively improved, with new technology wherein one machine washes and dries laundry. While we have had these machines for some time, the mechanics were not nearly as advanced as those coming to market now. This not only cuts down on time doing laundry, more importantly, it cuts down on utility consumption, saving the average family hundreds of dollars per year. Also with the new technology, the washer/dryer combo can text the consumer to let them know the load is finished and ready to fold! Ideally it would fold the laundry too
 I think that will have to wait until the next generation!

3D Printing in the Parts Ecosystem

Based on the products and technology we saw at CES, I am sure that 3D printing will be part of the service parts ecosystem. It may never get to the point where a consumer would print a part at home, CAD requirements are significant. However, I think distributors or manufacturers could potentially print a part on demand. Plastic items like gears or knobs, a handle for your microwave or a range knob could easily be printed on these futuristic printers. While still in its early stages, I think 3D printing will be in the parts environment as a viable service repair option.

Nurturing Relationships in the Aftermarket Services

There were so many opportunities for supply chain at CES this year. There are new companies that need to move quickly to try to capture their share of the US market. Often, when at CES, we will see exceptional amounts of new brands that have innovative technology, and they are usually laser focused on the design, build, manufacturing and distribution of the product. That said, it seems that the after-purchase service is an “after-thought.”

The obvious questions for these consumer product startups:

“What are your ideas for the aftermarket? What are your plans to support your products, as well as other important questions, which is where we can assist these companies in educating them about after purchase support.
Think for a moment, of a customer purchasing the product that you have innovatively put hours or months or years into creating, and that product fails; what is the backup plan or support? That consumer is going to be much more forgiving if they buy a product that the manufacturer stands behind. A good service solution, with a qualified technician, good parts source, a good original new part that will not fail is imperative to providing a good quality product. On top of which, the support base will also provide feedback about the service experience. This could be the most important part of the brand building experience.

That’s where Encompass comes in, providing that kind of structure and insight, and the full-service solution for supply chain logistics.

We have a consumer direct platform with fully integrated API’s with most all service claims administration companies. We integrate with a multitude of claims management systems, field service networks, home warranty companies, and extended contract firms. For these startup companies that might be entering the home appliance, consumer electronics, personal care, power tools, lawn and garden, and/or the computer marketplace, we can provide an even stronger support experience. Encompass will provide the same full service, with all the bells and whistles, right out of the gate, very similarly as do the core manufacturers.
www.encompass.com
This is why we always make CES a priority to attend. Not only to meet with current customers and existing vendors, whom we already support and nurture, but to also seek out new companies entering the market that may not know that they need the excellent quality service that we can provide. We look forward to seeing everyone at CES 2025.

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21 Apr

It’s Time to Prepare for the Right to Repair

Robert Coolidge, CEO

Robert Coolidge
President & CEO

‘Right to Repair’ is a term that most of the readers of this blog will be familiar with, given the media attention it has received in recent years. For those less familiar, Right to Repair refers to the movement to expand consumer’s options in repairing their personal property. Tactically, this means providing both consumers and independent third-party providers with access to the same tools, parts and documentation, made available to in-house repair teams and authorized third party repairers. The Right to Repair movement spans multiple industries (automotive, agricultural, medical devices, consumer electronics), with state-level laws passed across these industry verticals in the past year (Digital Electronic Equipment in New York, Wheelchairs and Agricultural Equipment in Colorado). In this post, I will focus on Right to Repair legislation for digital electronic equipment (including mobile, laptop, gaming), which will significantly impact some of our OEM partners at Encompass, and how we can be proactive in the solution.

Legislative Action to Date

While the Right to Repair conversation has been active at both the federal and state level over the past 2-3 years, states are leading the way by translating this conversation into legislative action:

New York’s Digital Fair Repair Act – New York’s Digital Fair Repair Act (N.Y. Gen. Bus. Law § 399-NN) is the first US state law to broadly protect a consumer’s right to repair their own Digital Electronic Equipment[1]. The law states that in the event that an OEM makes the Documentation[2], Parts and Tools[3] required for the diagnosis, maintenance, or repair of digital electronics available to its own employees or authorized providers, that OEM is required to make the same Documentation, Parts and Tools available to independent repair providers and consumers on fair and reasonable terms. These materials can be distributed either directly through an OEM or via an authorized provider.

[1] Legislation states that ‘Digital Electronic Equipment’ “means any hardware product that depends for its functioning, in whole or in part, on digital electronics embedded in or attached to the product for which the original equipment manufacturer makes available tools, parts, and documentation either through authorized repair providers, its own employees, or any authorized third-party providers.” Exempt industries include home appliances with embedded digital electronic products (including HVAC refrigerators, ovens, and microwaves), motor vehicles, electronic bikes, medical devices, security devices / alarm systems, off road equipment including power tools and garden equipment, commercial and industrial electrical equipment, and enterprise devices (B2B sales, B2G sales)
[2] Legislation states that ‘Documentation’ includes “any manual, diagram, reporting output, service code description, schematic diagram, or similar kinds of information required for effecting the services of diagnosis, maintenance, or repair of digital electronic equipment.”
[3] Legislation states that ‘Tool’ includes “any software program, hardware implement, or other apparatus used for diagnosis, maintenance, or repair of digital electronic equipment, including software or other mechanisms that provide, program, pair a part, calibrate functionality, or perform any other function required to repair or update the original equipment or part back to fully functional condition.”

The Digital Fair Repair Act will go into effect on December 28, 2023; the law will apply to Digital Electronic Equipment manufactured and sold in New York on or after July 1, 2023.  The law will be enforced by the New York Attorney General.

Beyond New York – With the passing of the New York Digital Fair Repair Act, Right to Repair Legislation has started to build renewed momentum across other states. As of February 2023, 20 states had filed Right to Repair legislation across multiple industry verticals. Of this group, 14 states filed legislation applicable to consumer electronic devices or appliances, including: California, Connecticut, Delaware, Hawaii, Massachusetts, Missouri, Minnesota, New Hampshire, New Jersey, Oklahoma, Oregon, Texas, Washington, and Vermont.

Federal Action: Federal authorities, including the FTC and President Biden, have voiced the need for Right to Repair protections. However, as of March 2023, no federal Right to Repair laws had been passed, prompting attorney generals from 27 US states to deliver a letter to Congress highlighting the lack of progress and calling for lawmakers to advance expansive Right to Repair federal legislation targeted at automobiles, agricultural equipment, and digital electronics.

What This Means for OEMs

Now is the Time to Prepare: When the New York Digital Fair Repair Act becomes effective in December 2023, Right to Repair will no longer just be conversation. OEMs need to be prepared now to meet the extensive go-to-market requirements of this law.  Some OEMs are already preparing; Apple, Google and Samsung, have started to provide the public with access to repair manuals, tools, and parts on a limited scale (eligible for select models and a limited set of parts) – likely as a pilot in expectation of future legal requirements.

Right to Repair Creates Significant Risk and Complexity for OEMs: Given that Right to Repair has a heavy legislative pipeline at the state level, OEMs will need to be flexible to accommodate differing state-level (or potentially federal-level) requirements as new legislation is passed.  Alongside this complexity, supplying new customer groups (DIY, independent repair providers) who have less repair experience than traditional in-house, authorized repair teams will require heavier OEM investment in hands-on user content and training. OEMs will have to address increased intellectual property risks in making repair Documentation, Tools, and Parts, publicly available, and both OEMs and warranty providers will be confronted with greater complexity in navigating future repair claims.

Finding the Right Partner is Critical: Given the OEM exposure to risk and complexity described above, finding the right partner to navigate the rollout of Right to Repair laws is paramount. Right to Repair will require the creation of new content and go-to-market models. OEMs should lean on solutions-oriented providers that can offer agility, flexibility, insights, and resources to lighten the OEM load.

Right to Repair Support from Encompass

Commitment to our OEM Partners – With 70 years of experience, and a deep commitment to brand support, Encompass understands the needs of our OEM partners. Our work across ~20 repair industry verticals allow us to act as a thought partner to OEMs, bringing cross-industry best practices and learnings to the table. In addition, our commitment to selling OEM-only parts ensures that each customer receives a quality product and repairs the first time, eliminating confusion and dissatisfaction caused by generic substitutes.

Leading Data & Technology – We are actively investing in leading technology to improve the customer and partner experience. Our spin360 technology creates detailed 360-degree photographs of parts, helping ensure that customers are selecting the correct replacement part for their device. Our reporting and analytics capabilities enable us to provide our OEM partners with a complete view of demand and trends for both parts and customers.

Custom Solutions – Finally, at Encompass we work with our partners to design custom solutions to meet their needs. Whether it is creating virtual parts repair toolkits or bespoke user content (repair how-to videos, training guides, etc.), we are committed to the correct and safe repair of your branded products.

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25 Oct

Evolution of Parts Distribution

It’s said the only constant in life is change – a sentiment that is certainly a given in the business world.  Companies form, merge with others or disappear for lack of innovation against startups or competitors. Industry disruptors have been a prevalent part of commerce for thousands of years since cattle trading gave way to coins as currency.

Just when it seems impossible, something new comes out of nowhere to upend the status quo. From online retailers usurping brick and mortar retailers to mobile phones replacing landlines, answering machines and cameras, it’s not a matter of if a better mousetrap will come along, it’s when.

While a disruptor may be inescapable, it’s not all that dire. In fact, a study conducted by Strategy& (PwC’s global strategy consulting team) found that the “fear of disruption can be more damaging than actual disruption.” Additionally, existing businesses typically have plenty of time to respond to new trends before they are impacted, according to the study. Examples cited were Amazon and Google, which each took at least 10 years before dominating the web and ecommerce.

When facing a threat, established businesses that try to rush out ill-conceived strategies are just about as ineffective as those that do nothing, the study found. Instead, incumbents are more likely to succeed when they focus on continually accentuating their own core strengths and forming tighter customer connections to build loyalty.

Distribution is no less vulnerable to disruption than any other industry. As a middleman, distributors are always at risk for disintermediation. In turn, they must continue evolving and innovating to provide increasingly value-added services. The question that should be asked repeatedly is “how can we help our customers be more successful?” This is the difference between a partner and merely an order-taking vendor and a disrupter and an incumbent.

In parts distribution, it’s all about keeping critical components in stock and getting them to the customer the same or next day. This requires a massive effort beginning with forecasting what customers will need and ending with the right parts quickly in the hands of the customer. In between, every step of the process must be optimized for efficiency, accuracy and maximum throughput.

With decades of parts experience, Encompass is heavily investing in the latest AI and predictive technology to arm customers with vital data. Helping customers troubleshoot repairs and identify the right parts for the job are just a couple of ways we’re serving as more than just a supplier. Working directly with customers, we also develop creative tools that address specific pain points and help them be more successful.  Along with product repair training, video content and matching tech skills with those needing to strengthen service networks, Encompass is deploying a host of resources for the benefit of the entire industry.

We’re also targeting warehouse management solutions and automated functionality with the goal of expediting parts delivery. Backed by the resources and best practices of our parent company Parts Town – the global market leader in foodservice equipment parts distribution – we’re better positioned than ever to turn our customer-centric visions into reality.

While technology is at the heart of many of our innovations, we still believe in good old-fashioned people skills. If you want to interact with a real person, Encompass has the channel for that. Our teams are always out visiting customers in person all over the country or we’re calling them with information on important new services or just to find out if we can do anything to assist.

In 2023, Encompass will celebrate its 70th anniversary. We could not have survived in a competitive industry this long without continually raising the bar for customers. While we mark this important milestone in our history, we will forever be looking forward and exploring how we can offer more.

To the market disrupters out there, we say: our resolve to be best-in-class is only getting stronger.

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17 Jan

Musings from CES 2022

Although the pandemic clearly impacted attendance at the Consumer Electronics Show held earlier this month, innovation and the “wow factor” remained on full display (pun intended, read on).

Not Your Great-Grandma’s TV

Just when you think the television market has plateaued for good, Neo OLED televisions have arrived to blow your mind with displays so bright and crisp you can see the fuzz on a tennis ball.  The latest TV technology unveiled at CES is meant to fully immerse viewers into the entertainment experience. With screen sizes ever increasing and/or curving, users are enveloped more than ever before.  Even at dominating sizes, new models aren’t necessarily eyesores. Some display realistic-looking art masterpieces when in standby mode, while others roll up and are hidden from view entirely.

Mobility Space Accelerating at CES

Beyond developing more lifelike (and size) futuristic gaming and television displays, some electronics manufacturers are remaining relevant by jumping to completely new verticals. One such example is Sony. Alongside crystal LED, professional drones, gaming, virtual reality and other CE exhibits, Sony unveiled VISION-S 02, its second battery-electric car prototype. With focus on electric power, autonomous mobility and safety features, this year’s show drew 185 auto manufacturers in the growing vehicle technology category at CES.

Sony’s concept battery-electric VISION-S 02

Sony calls its car a “new SUV-type prototype vehicle that accommodates diverse values and lifestyles.” Meanwhile, Panasonic debuted new electric vehicle battery technology that substantially increases storage capacity to extend range. The manufacturer, which supplies TESLA batteries, is also making the motor/battery system for Totem USA’s first eBike, Zen Rider.

Sony’s first prototype VISION-S is now undergoing road tests, and the manufacturer is creating an automobile division. Although there is no guarantee the vehicle will ever be mass produced, hats off to Sony – and Panasonic – for diving into a new product pool. If Sony’s vision ever becomes reality, it may one day be perfectly fine to sleep in the back of your car while it takes over. Plus, with Sony’s ingenuity, the onboard display system is sure to shock and awe.

Appliances Getting Smarter & Snappier

Nearly all manufacturers showed off products embedded with smart technology. From dryers that send notifications when laundry is done to refrigerators that offer recipes based on existing contents, appliances are being made to do a lot more for consumers than simply heat and cool.

Appliances are also being designed to free up space in the home. Stackable laundry units provide ample capacity while providing enough room to add a sink or more storage. Vibrant colors are replacing the white, black and stainless steel of most standard appliances. Samsung introduced a line of French door refrigerators available in 12 colors from pink to emerald green.

Robotics was another theme on display with upgraded floor cleaners, self-filling baths and other automated functionality to assist you in daily home life. Here’s hoping the robot chefs that duplicate famous chef dishes make it into the home in my lifetime.

                       Robert Coolidge
                       President & CEO

Opportunities for Repair Industry

By now, savvy, ambitious servicers have evolved their skills and business models to meet market demand and stay current. Those still relying on 42” TVs for repair work are likely close to retirement or have a lock on their service area.

Electric cars are going to displace gas powered vehicles – it’s not if, but when. What does this mean for electronics gurus? Could their skills transfer to this technology and displace standard auto repair shops? What about robotics, e-bikes and next-level gaming consoles? These types of electronics are sure to hold their price points much longer than LCD TVs, which should help drive repairs vs. replacement.

It’s often hard for businesses to anticipate future trends and adapt their operations accordingly when balance sheets are healthy. But no matter how comfortable you are today, it can all go horribly wrong if you refuse to be forward thinking.   Look no further than Blockbuster, Sears, Kodak, Borders and the like. Turns out there’s no such thing as being too big or successful to fail.

If you’re not paying attention to tech news and looking for new opportunities to provide aftersales service, you will eventually get left behind. It was a long time before mobile phones replaced the ubiquity of landlines, but once they took hold, that was the end for all kinds of businesses. Remember pagers? When’s the last time you used a phone booth or bought an answering machine?

Displacement is just around the corner from the next innovation. Watch where we’re going and don’t fall flat on the pavement.

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