NAPA breaks new ground by transcending R1 billion in turnover in 2010/2011

The National Automobile Parts Association (NAPA) celebrated a milestone event this year by exceeding R1 Billion in turnover for its 2010/11 financial year. Consider that NAPA, with its 110 members in South Africa and Namibia, achieved this in purchases from the Association’s 54 suppliers in the fast moving parts sector, the huge volumes achieved can be appreciated. NAPA was founded in 1976 with only 12 members and a handful of suppliers, and experienced zero to hero growth in just 34 years to become an important and established Division of the Imperialheld MIDAS Group. All expectations are that the Association will continue on its track record of stable growth, remaining a significant contributor to Group earnings. It isn’t everyone who can lay claim to have been part of a highly successful enterprise right from ground zero, and then leading it from strength to strength through three and a half decades. Such a man is Rolf Gudegast, wellknown professional in the replacement parts sector who immigrated to South Africa from Germany in the mid-sixties. He joined the MIDAS Group in 1976, and together with Derek Riley, identified a procurement opportunity in the replacement parts sector. NAPA was founded to service and expand on this opportunity, and the rest as they say is history.

Currently serving as Chairman of the Association, Gudegast explained the Association’s early days: “When we started the Company with the 12 initial members, our main product line supplied through NAPA was protective sheepskin seat covers for cars, which, you may recall, was very fashionable and popular in the replacement parts market in those years.” “The concept we brought to market was an innovation in the supply chain and whilst we encountered opposition from many quarters to our concept of bulk procurement, the benefits to members, as well as suppliers, soon became evident.” According to Gudegast, early success with the implementation of the business model soon resulted in acceptance of the value proposition in the industry, and set NAPA on a steady growth course.


The achievement of breaching the R1 Billion mark, especially in an environment where industry trading conditions are tough and competition is really stiff, bears testimony to the loyalty of NAPA member. “This is made possible by excellent service delivery by our suppliers and the passion and dedication of our young and dynamic management team, now led by Managing Director Megan Naiker.” Asked what he would single out as a key factor in the success story of NAPA, Gudegast responded without hesitation: “Building and managing relationships and maintaining quality communication with our members and suppliers. It is the foundation on which our business is built.” These principles are widely recognised as critical success factors for any business, but are not always afforded the attention they deserve.

Gudegast insists that NAPA’s business culture is built around these principles as tenets of the way they do business without compromise.” I believe that this has been a major contributing factor in the exceptional level of member loyalty experienced by NAPA. Long may that continue!” And what about the future? “We are confident that NAPA will continue on its growth path into the future”, he says. “We already have members in Namibia and elsewhere in Southern Africa and have identified significant opportunities for growth in the SADEC and East African Regions which we are addressing at present. We believe that these initiatives will be important factors in underpinning our expansion efforts going forward.”

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