The relationship between dealerships and their suppliers forms a cornerstone of operational success. These partnerships influence everything from day-to-day logistics to longterm strategies, impacting not only efficiency, but also customer satisfaction and financial performance. The interplay between dealerships and their suppliers is more than just a transactional relationship; it is a strategic collaboration that can shape business performance.
From qualities like consistency and agility to the balance between innovation and practicality, suppliers need to be able to navigate the complex landscape in which a dealership exists in order to continually deliver value. Whether grappling with onboarding challenges or evaluating the merits of local versus international suppliers, dealerships have to remain focused on fostering partnerships that align with their own operational goals and customer-centric philosophies.
By prioritising communication, understanding, and strategic alignment, both dealerships and suppliers can share mutual success.
AM has sought the insights of leading industry professionals including Chris Lee, Howards Motor Group managing director; Mark Pardoe, managing director, Griffin Mill; Nathan Tomlinson, managing director, Devonshire Motors and Tony Sciascia, managing director, Celtic Auto, who offer a nuanced understanding of what dealerships value most in their suppliers and how achieving best practice in developing successful relationships can represent a win-win for all concerned.
The senior executives who were consulted in this analysis offer several key takeaways for suppliers aiming to build strong, enduring partnerships.
First, a deep understanding of the dealership’s unique challenges and priorities is essential. Suppliers must demonstrate not only technical competence but also empathy and a commitment to the dealership’s success.
Second, innovation must be pursued thoughtfully, ensuring that new solutions align with operational realities and deliver tangible value.
Finally, flexibility and adaptability – both in terms of contractual frameworks and operational approaches – are becoming increasingly vital in an industry characterised by rapid change.
This article first appeared in the AM Dealer Recommended 2025 report. View the full report here
What qualities do dealerships look for in suppliers?
Dealerships rely on suppliers to maintain seamless operations and deliver superior customer experiences. As such, the qualities that define a valuable supplier often revolve around reliability, innovation, and alignment with dealership goals.
Lee, representing an AM100 group perspective, outlines a clear set of expectations: “As a dealership group, we look for suppliers who understand the automotive industry and our specific needs. Consistency in service delivery and product quality is essential, as disruptions can directly impact our operations and customer satisfaction.”
He points to agility as a key differentiator, noting that suppliers must be able to swiftly adapt to evolving dealership and customer demands. Moreover, he underscores the importance of shared values: “Alignment with our customer-first philosophy is crucial. Everything we do is customercentric, so we expect our suppliers to share our mission to enhance and maximise the customer experience.”
Pardoe highlights the need for simplicity and tailored support, and believes suppliers should provide ongoing reviews, training, and updates specific to the dealership’s business needs.
Integration is a recurring theme, as Pardoe explains that seamless alignment with existing systems ensures operational efficiency for both staff and management.
The value of tailored solutions becomes clear when Pardoe observes that poorly designed supplier products often lead to costly workarounds: “The worst of partners can ultimately end up forcing you to adapt your processes, to fit the inadequacies of the product, often finding that integration doesn’t match up to the sales pitch.”
Devonshire Motors’ Tomlinson adds another dimension by highlighting the interplay between traditional retail approaches and modern digital systems.
He explains: “As retail continues to move away from the traditional and leans more heavily on digital, retailers are exploring new technology, innovation and systems. When you’re blending a very traditional approach to retail, and often a legacy set of skills, with a completely new digital system you need an understanding of how to integrate that system at the retailers’ level of technical competence. A good supplier will understand that.”
This underscores the need for suppliers to act as m e d i at o r s , bridging the gap between evolving technologies and the workforce’s existing competencies.
Even so, most important is the fundamental expectation that suppliers will act as dependable partners who are focussed on client success.
Sciascia at Celtic Auto provides a succinct summary of dealership expectations here which advocates for reliability and value as givens: “Dealers want suppliers to be reliable and honour promises, to provide good value and where applicable, speedy and reliable support.”
What defines a good supplier partnership in motor retail?
A supplier relationship transcends the transactional realm when it becomes a strategic partnership and the attributes that define such partnerships are trust, alignment and proactive collaboration.
Lee says a good supplier “is one who acts as an extension of our team. They are proactive, communicate effectively, and are genuinely committed to helping us achieve our objectives.”
Transparency is paramount, according to Lee, especially when it comes to costs, timelines and potential challenges.
Most importantly, when challenges arise, a dealership must have suppliers who come with effective solutions – swiftly.
Again, agility and responsiveness are non-negotiables. “In a fast-paced industry, quick response times are essential. Whether it’s addressing an issue, offering support, or responding to market changes, we need partners who are agile,” he says.
Pardoe expands on this theme of collaboration, noting that the best suppliers take the time to understand the business needs and tailor their offerings accordingly.
“We look to see if a supplier is culturally aligned to our business, along with our goals and aspirations. Will a supplier/product add value to our business and is the cost relative to the potential benefit or can something we currently have be adapted to meet the need?”
Tomlinson calls for suppliers to prioritise productivity and long-term value over fleeting trends with the accent on delivering durable, practical solutions.
“We’re looking for a product or service which we need and that can add value, rather than tech or a system for the sake of it,” he says.
“ There’s a lot of hype around at the moment and it’s really important not to get caught up in trends.
A good supplier partner will understand how automotive retail works and how they can enhance productivity.
“The flip side to that – the ease with which digital innovation can be developed allows suppliers to bring products to market in super-fast time, so there’s a lot of quick fixes which don’t necessarily have the background or back-up which will provide value for money over time.”
Sciascia agrees, saying delivering relevant, impactful solutions is key to meeting the real-world pragmatic perspective of most dealerships: “A good supplier partner is one who understands what the dealer needs and not what they think the dealer wants. They will have a real-world understanding of life at a dealership level so can therefore empathise with the dealer requirements and thus provide goods or services which are relevant and can make a difference.”
In terms of prospecting for new business, Sciascia also offers some important advice: “I look for suppliers who are not pushy to get a foot in the door. I want the supplier to respect the demands on my time and therefore get to the point.”
Once installed, a supplier then has the responsibility to maintain a high level of responsiveness: “For me, the ability to pick up the phone and get support or an answer when needed is crucial for long-term relationships,” Sciascia says.
For Lee, a robust level of customer support is key, not only in terms of being able to resolve issues efficiently – but also to respond to a dealership’s growth aspirations: “We need suppliers who are easy to work with, can scale with us and adapt to changing requirements.”
How challenging is it for dealer groups to onboard suppliers?
Onboarding new suppliers is a critical, yet often challenging, process, requiring careful planning, integration and collaboration to ensure smooth transitions without disrupting operations.
Here, Lee acknowledges the inherent complexities, stating: “Onboarding new suppliers can be challenging, particularly because of the need to ensure seamless integration with our existing systems and maintain service continuity.”
He notes that his business’s high standards for data security, system compatibility and usability can make the process complex for new suppliers although he points out that Howard Motors’ skilled team can ensures successful transitions.
Pardoe at Griffin Mill echoes these sentiments, stressing the need for detailed preparation: “The onboarding process demands meticulous scoping and briefing, engaging all user levels within the business.”
He praises suppliers who understand the time and effort required for a smooth transition, noting that such efforts ultimately foster stronger partnerships.
Reflecting on the many significant technology-based migrations over his 25-year industry career, Tomlinson says they were successful because teams and individuals worked very closely and tirelessly together to deliver them.
“With API technology, onboarding new suppliers and systems should be quick and easy. In practice, it’s rarely the case, and my observation is that this is largely as a result of differing working patterns, less fluid communication, and no doubt a similar shortage of experience and skills as we also face in automotive. Today, even the simplest of tasks can become complex and timeconsuming,” says Tomlinson.
Sciascia, however, notes that modern contract structures have helped offset the risk, aligning with an industry-wide push to introduce innovation while maintaining flexibility in supplier relationships.
“If there is a minimum term contract,” he says, “it tends to be no more than 12 months with more and more suppliers introducing rolling onemonth contracts. This is a great way to get me to engage and try something new and demonstrates belief in their product and, if it does not work, I can cancel with a minimum of expense.”
Are dealerships looking for international suppliers?
The global marketplace offers dealerships further access to innovative solutions although much depends on specific needs and priorities, with support for domestic suppliers judged important.
Even so, Lee expresses openness to international options, stating: “We’re open to looking outside the UK if it enables us to find best-in-class solutions that meet our needs.
That said, we do prioritise suppliers with a strong understanding of UK regulations and market nuances.”
Tomlinson also highlights the advantages of international partnerships, particularly in the realm of AI-driven solutions, explaining: “The technology was a big appeal, but more so was the partnership which allows us direct access to work with and evolve the product.”
Should suppliers focus on constant innovation?
Emerging trends such as digital transformation, electrification and customer-centric innovations will undoubtedly shape the future of these relationships, although balancing innovation with stability will remain a critical challenge.
Lee articulates this balance succinctly: “We do expect innovation, but our preference is only when required.
Innovation is good, but so is stability in the complex business we operate in.
“When innovation comes, it should be to improve efficiency or maximise experience.”
Pardoe takes a more assertive stance: “The needs of the market and our business are constantly evolving and we want our suppliers to move with that change at a pace. We don’t want to add proprietary functionality to fulfil the lack of innovation from an existing supplier.”
Even so, dealers need to be cautious of the risk of their suppliers overpromising and under-delivering and should value execution over novelty.
Tomlinson cautions against innovation for its own sake: “You need to always be looking ahead and planning for the next generational shift in terms of both employee and consumer. All too often, though, I see suppliers, especially in the technology ecosystem, designing tools which will be needed tomorrow but positioning them for today’s market. This can be expensive and disappointing for all parties.”