In October 2018, PMF spoke with Spartan Motor Factors’ CCO Lee Gratton about the company’s history. Fast forward a year and a half, and much has changed. A few months ago, we visited the company’s headquarters in Newport to find out more.
The last time PMF met with Spartan Motor Factors, the company was establishing itself as one of the largest parts distributors in Wales. This time around, it’s evident to see that there has been even more progression – the company has even set its stall in England, with branches in Bristol opening recently.
The Newport branch, recently listed as Spartan’s new headquarters, was an extremely impressive facility, and Damon Peacock, the company’s Purchasing Manager, waxed lyrical about the branch, commenting: “This is not just a motor factor anymore, it is a distribution centre.”
Walking around the facility with Damon really demonstrated the scale of both Spartan’s desire and capacity to become a real force in the industry; rows upon rows of racking were jam-packed with stock that is able to be delivered to every single one of the company’s current branches. Beyond the obvious investment in infrastructure, Damon highlighted how effective investing in training has been in running a distribution centre of this size. Calling this initiative a “monumental effort”, he explained how the staff had to be trained to operate the forklifts that can be used up to 10 metres high.
Before bidding adieu to Damon, he was able to divulge that the company was becoming the only motor factor in the UK to offer a two-year guarantee on all of its products. To push this through, Damon stressed that every single one of Spartan’s suppliers had to be on board, which he labelled as “a huge commitment”.
Growing strong
At this point, Jason Farrugia, the company’s Co-Founder and CEO, walked into the room and sat down for a conversation. Jason made it clear that the rapid development of Spartan was due to the ambition of the company’s leading figures, commenting: “We’ve always run before we can walk.”
However, despite the obvious progress that the company has experienced over the last year or so, Jason pointed out the potential for even more growth, noting that approximately 40% of garages in Newport alone didn’t buy their products from Spartan.
For Jason and Lee Gratton, one way of achieving this growth is to solidify the structure at the top-end of the company. This has been ongoing with several appointments, including that of Nigel Griffiths as Chairman, whose role is to give the company “more direction” and to keep its “feet on the ground”. Nevertheless, it was abundantly clear that Jason has high ambitions for Spartan, with the company’s CEO adding: “There’s no reason that we can’t become the major player in Wales and the South-West. We’re the largest independent factor in Wales, but we have to focus on eating into the business of the national players.”
With plans for more branches to open in 2020, Nathan Travis has been appointed as the company’s Regional Director, whereby he will focus on Newport, Blackwood and Tredegar. With these branches described by Jason as “the spine of the company”, Nathan’s appointment is one of significance, and it appears as though Nathan has the immediate confidence of Jason, who commented: “Nathan, with his experience at Fast Parts, will give us a better perspective in establishing better processes.”
Keeping an open mind
Conversation then shifted to the benefits of operating in an independent business rather than one where the control is not solely in the hands of those in management. “If you’re in a buying group and you’re visited by a representative of a company that you’ve never heard of, if it’s outside your tender, you won’t touch it,” Jason added. “This company could offer the best, most innovative products and could be a massive boost for your business, yet they still seem to be reluctant to try anything new. We’re not like that; we do have a brand map and we are loyal to our suppliers, but if a business offers good products, we’ll give them a chance.”
Sitting in the company’s headquarters directly next to the distribution centre, Jason adhered to the challenges that came with operating such a large facility. “Initially, we thought that we could run the distribution centre as a very large branch and nothing else. But then you’re talking about a 45,000/50,000ftÇ branch. We also made a lot of errors in regards to the positioning of the racking and the stock on the racking, so we’re adapting now. It’s becoming a smoother operation as a result.”
Ultimately, the success of the company has depended upon its family spirit. Jason was eager to stress that the company’s progress would not get in the way of this: “As large as we get, there will always be that family feel. If one of our customers is unhappy with us, the chances are that myself or Lee will be straight over there to resolve the problem. It’s vital to retain this attitude and not to lose touch with our branches.”
Upon being asked about the company’s immediate future, Jason signed off with a hopeful prediction. “I hope that this is a year of consolidation, where we are able to develop our current branches and give them the tools that they need to succeed.”
One of these branches is Bristol North, which opened in early January 2020. Following the visit to Newport, our next call was the new branch. The facility itself was, much like in Newport, impeccable, and the branch achieved the highest opening day sales of any branch in Spartan’s history.
Mark Lavington, Bristol North’s Branch Manager, reinforced the family feel of the company, stating: “Everyone here wants to work for one another. We’re a real team, and we’re all equal.” In terms of Mark’s relationship with Jason and Lee, he only had positive things to say, regarding the founders as “approachable, kind and caring.”
As Branch Manager, Mark discussed his role in setting up the facility – even going as far as selecting the property that the branch would be set up in. Perhaps this is why he described the company as one that is “managed properly”; Mark, as management with more expertise, was given the freedom to do what he thought would enable the branch to be a success. Here, then, is evidence of what Jason had in mind for the future. So far, this strategy appears to be reaping the rewards – even during our visit, delivery drivers were on their way in and out, and the camaraderie between the staff was palpable.
All in all, both branches were hugely impressive – from the distribution hub of Newport, to the brand new Bristol North. Since October 2018, there has been a clear progression in the company’s infrastructure, including new branches, new, high-level staff, and a new business process in the form of the two-year warranty. One can only wonder what the company will look like in two years’ time, even if it might settle down for the time being.
