From Sandwich Artist To CEO with Kaylee Felio

Kyle Mountsier  0:00  
You know, sometimes we start these podcasts and we don't really know what we're about to say.

Unknown Speaker  0:11  
This is Auto Collabs,

Kyle Mountsier  0:13  
including Michael Cirillo having his glasses on the top of his head, rubbing his eyes because he doesn't really even know what we're doing.

Paul J Daly  0:20  
You know, he recently like a

Kyle Mountsier  0:22  
cat. If you don't watch the video of these podcasts, you're doing yourself a disservice. You should at least some point go to, I don't know, just search Auto Collabs on the old Google thing, and it'll, it'll come up, and you'll just see us making a fool of each other.

Michael Cirillo  0:37  
It is because, you know, like, I love little things like that you have to watch, like eyeglass adjustment culture. It's a thing. Is it really a culture? Excuse me, some people like, I'm a solid, like, two finger C shape, adjust the glasses. But some people do the cat PA, you're gonna notice it now they they do it.

Unknown Speaker  0:59  
That's ah,

Paul J Daly  1:03  
I've never, I've never noticed that, but the second I notice it, Michael, Oh, that's good, yeah,

Kyle Mountsier  1:09  
two fingers I you know, you got the you got the nerd, the nerd, nerd center, the or, or single finger sides. You've seen single finger side. Oh, yeah, right,

Speaker 1  1:21  
yeah. Just you know exactly. You know they're they're poised to be creators, because the single finger sides and the side sea are people that know they can't put something in front of their face on camera.

Paul J Daly  1:33  
So today's guest, by the way, Kaylee filio, aka the parts girl with the parts heads podcast, she is a creator. Does she work? I

Speaker 1  1:41  
don't think. Should I wear glasses? No, I haven't seen her wear glasses. Okay, I

Paul J Daly  1:45  
was wondering, because she's a creator. I always love when we have creators on the show, yeah, because, like, they get to be on the other side, you know, like, whenever we get to be a guest on someone else's show, it's just nice to have someone else managing the conversation. And Kaylee is obviously very passionate about content, but very passionate about the parts department and the fixed ops side of the business. So much so is that she started a podcast for a company. It's gotten a lot of traction, and I think they just released a white paper, and they're doing all kinds of stuff. She's kind of leading the charge in a lot of ways for them. So it'll be great to have another creator on this show, and we'll see how she enjoys just sitting back and watching. You know, some of us make fools of ourselves while she gets to so we hope you enjoy this conversation with Kaylee filio,

Kyle Mountsier  2:31  
all right, Kaylee, thanks for hanging out with us. It's so good to finally have you on the pod.

Kaylee Felio  2:36  
Yeah, I cute. Thanks for having me. This is awesome. I'm so excited. Long time coming.

Kyle Mountsier  2:41  
Well, one of our favorite things is hanging out with other podcasters. Because, like we always love going on other podcasts, because, finally, you don't have to ask the questions, right? You get to answer the questions. So you, you, obviously, you, let's start with that. You have your own podcast. Why did you start that? You You have your own thing that you do, that you like to communicate with. Where did that? Where did the inspiration for that come from? Well,

Kaylee Felio  3:05  
it started with just, I kind of coined the brand, or I guess everyone thinks of me as the parts girl, which is great because I've been with parts edge for 12 years, and that is the side of the business I know most, and that's where it started. I started I started the podcast because I wanted to bring more attention to the parts department. It's evolved into so much more. Though my conversations are trailblazers in the industry. I of course highlight client success stories, and then, of course, just focusing on very specific parts topics that not a lot of parts managers get. You know, very like return process. What are you doing with your manufacture programs, those types of things. So it's been really great, and I don't It's not called the parts girl podcast anymore. I've evolved it into just simply the parts edge podcast with, you know, Kaylee filio, but I'm still,

Paul J Daly  3:56  
is it Kaylee phillio, the parts girl,

Kaylee Felio  3:59  
yeah, yeah, yeah. It's still Kaylee filio, the parts girl. I just felt like the just calling it the parts girl podcast was very it was siloing me, and I wanted the audience to feel more open and just, you know, really seeing the conversations more than just parts, I guess. Well,

Kyle Mountsier  4:16  
I think that it is it well, one, it's interesting, because you've, since you've been in auto, you've only been on the part side of the business, right?

Paul J Daly  4:25  
Yes, tell us the story. How'd you get an auto? Yeah,

Kaylee Felio  4:27  
um, well, I feel like I've told this story so many times, so like, I feel like it can get more exciting and better.

Kyle Mountsier  4:36  
Well, you gotta add some. I jumped over a house into a pool. It's like it just gets sideways from there.

Kaylee Felio  4:43  
I was a sandwich artist. No, literally, though I was managing a subway. Yeah, subway is how I got into it, and it's kind of interesting the parallels between managing a Subway restaurant and the car dealership or the fixed office or parts department side. Of things. So it's very interesting how that kind of lined up. Because I was at Subway, I was managing an inventory. I mean, it was perishable, so there's, you know that, but, and it was not, there's that little thing, yeah, there's that thing, um, obviously just, it's a little bit simpler, I would say, but, um, there's very, there's a lot of parallels with it. But anyways, I was managing it. I, um, I was very fortunate, actually, to I helped build that location. So I was working, um, in high school at the other location, and, um, the owner was opening a new location. So I was, I was part of that, and it was from the ground up. So she wasn't, she didn't bought a physical location. She built it, and it was in a business park. And just I got to understand a lot of the business side, the marketing, dealing with the franchise, all of that.

Kyle Mountsier  5:51  
Yeah, very a lot of parallels. There so many parallels. That's wild, yeah,

Kaylee Felio  5:56  
oh, yeah. And I remember I would go to the meetings with the subway, you know, that's telling us how we have to change the process. And I'd be like, I'm probably that that fixed ops directors. Like, you're gonna tell me how to do this. Like,

Paul J Daly  6:07  
what do you know about making you know how to collect franchise fees and royalties? You have no idea. Yeah, we put the cheese there and the meat there. Yeah, right.

Kaylee Felio  6:19  
No idea. And to the other thing to think about is that what worked at that other location didn't necessarily work at this new location because it was very heavy in, I mean, Subway, you think lunch, but it was a business park. Our Rush was very much in

Paul J Daly  6:35  
the also very similar to automotive, yeah,

Kaylee Felio  6:38  
very similar. So it's,

Paul J Daly  6:42  
you're there, your sandwich artisting. You put this bill, you help get this location set up from the ground up. And then you said, Wait a minute, I could be doing the same thing with oil filters.

Kaylee Felio  6:55  
No, I didn't actually think, oh my, the regulars, or the founders of parts edge were regulars Chuck being a parts guy, very methodical, very routine, like, I could probably recite his three sandwiches that he always got. He was like,

Kyle Mountsier  7:13  
That's too wild, yeah.

Kaylee Felio  7:15  
But anyway, yeah, I'm thinking about it. I'm like, Man, I could remember it, okay. But anyway, yeah,

Paul J Daly  7:20  
make it right now with my eyes closed. I mean, I could still make a Whopper with my eyes closed, because I worked at Burger King, yeah, just put me there. Put me on Whopper board. I'll knock that out.

Kaylee Felio  7:29  
Isn't it so frustrating, too? Like, I don't mean, I don't know, yeah, well, that, and it's well, especially with subway. So you could, you can see them in their process, and I would go, and I'm like, Oh my gosh, their processes so

Unknown Speaker  7:41  
can go to a subway. I can't watch.

Kaylee Felio  7:45  
I just want to show them how to

Paul J Daly  7:48  
that is not three ounces of lettuce. Okay.

Kaylee Felio  7:53  
The most frustrating thing was we were so efficient because we had to be with having a light the line out the door. We had to push and pull like we couldn't be hopping around all the place. And I, whenever I go to a subway now, I'm like, they're hopping all over the place. They could be so much more efficient if they just push the sandwiches down the line. And everyone had their role, and they did it. And you just, I don't know

Paul J Daly  8:16  
it's a perfect fit. No, no, but so you're doing this. And the owners, yeah, parts edge are coming in, buying the same sandwiches, and you know them, you have them memorized. And they were like, Kaylee, there's a future for you in the auto industry. Pretty well, it kind of worked,

Kaylee Felio  8:30  
yeah, they presented the opportunity. They actually asked me if I knew anyone looking which, I guess

Paul J Daly  8:38  
that's classic. Yeah, classic. It went

Kaylee Felio  8:41  
right over my head. I was like, now,

Paul J Daly  8:44  
like, anyone whose name rhymes with Bailey may or may not work in a subway we visit all the time.

Kaylee Felio  8:51  
Yeah, yeah. So I thought about it, and I was, I think I even asked them, like, Well, I would be interested in that. So that's kind of how it started. And I actually worked for them for, I think it was a good six, seven months, and I went back to the subway because it was really hard for me to leave what I had built there and and also going there for lunch and seeing them struggle like it was, like my baby, I left it. So I ended up going back to Subway after seven months, and then I left them again, subway again, and went back to parts edge, because I realized the bigger opportunity. Yeah, I was just like, I don't I, of course, would be, it would be great to buy a Subway restaurant, but at that time, I wasn't there, and I just wanted to do I didn't. That's all I ever knew. I wanted to do more. I wanted to learn. And so I went back to them, and here we are, 12 years later,

Paul J Daly  9:44  
12 years podcast later, multiple children later, right? Yeah, your life is different. Now I want to shift the conversation for a second, because you obviously have a very keen understanding of process and efficiency. You have access to all types of data. I. Um, you know, you interview all types of people, what do you see as, like, the innovative practices or technologies that people are deploying very successfully in the parts department and in fixed ops right now? Like, what's at the front of the

Kaylee Felio  10:13  
pack? Oh, man, there's so much with if you look at fixed ops as a whole, I would say the ones that are adopting technology for automation and just that mundane things that you just don't have to do anymore. There's, there's solutions for that. And, um, I just, you know, I just look at, I mean, you guys have a process, right? Everyone has a process for doing, executing certain things that they want to do. And I think, um, it shifts. It change. You evolve, and business grows, or things happen and and your team grows, so you have to constantly be looking at your process and think about how, how you can be most efficient with it. And I think parts departments are naturally parts managers are just way more in tune with efficiency. I think they're just naturally those type of people you

Paul J Daly  11:04  
feel like they're also most likely to be set in their ways. Yes, right? Isn't that? Isn't that the dichotomy, it's like,

Kyle Mountsier  11:12  
right? This is the process. You don't change it, because this is what works, right? So, very process oriented, but set in their ways, right?

Kaylee Felio  11:19  
Yes, absolutely. Oh my gosh. That's the most frustrating thing I've experienced with selling parts edge through the last however many years it's been

Paul J Daly  11:27  
there is a joke yet. But you know, like 98% of parts managers in the industry came with the building,

Kaylee Felio  11:33  
yes, there is yes. They were like, I've been doing this for 30 years, yeah,

Paul J Daly  11:39  
and so and so. It's frustrating. How do you communicate to them? Because obviously, technology is being deployed at a faster velocity than ever, right? And so someone who is committed to efficiency, and who really gets excited when they, I think, legitimately get super excited when they make something more efficient, how do you get them to open their mind a little bit to, like, consider a new technology?

Kaylee Felio  12:01  
Yeah, that's a that's a good question. I feel like over the years, I've evolved in my process of creating relationships. You can't just go to a parts manager and say, throw it in their face like it's CR it's creating the content and the information that helps them so that they see us as trusted advisors in in their in their process. And I think that's really helped when I started in the sales and marketing role, there was no marketing for parts edge, there was no content. So I went to our clients, and really, you know, honed in on what it is that we're doing for them, also talking about all the things that we talk about in inventory control, and capturing that in a digestible way to learn. So giving the resources helpful, and

Kyle Mountsier  12:50  
it's not like it. I mean, how, how many places can you go? You know, I think about, like, Where does a parts manager go to, like, learn or, or find the new process? Like, there's not actually parts and fixed ops are the only ones that actually ever get to go to 20 groups, because they typically have, like, one thing a year, and that's it. But there's not like much it nada, sales and marketing, right? Most conferences are sales and marketing. I think there's like, one fixed ops conference put on by Mopar or something like that, a year, right? And and so there's not this, like treasure trove of people talking about how they're challenging and changing, specifically the parts department, right? Because it's normally when I hear fixed stops. It's even much more about the advisor, much more about check in and the walk around process and all that time. It's not about, like, the parts, efficiencies, obsolescence, how to manage inventory, inventory controls, data retention, pot, all of those type of things. And so that's a that's a key point is you're saying there had to be, you almost had to, like, create the education matrix in order to drive the behavior change

Kaylee Felio  13:58  
absolutely, yeah, that's what I've done. So I think that's, that's the best strategy, and I think the other two, the other area, or, I don't know how to phrase this, sorry, I'm like, jumbling my words. But one, one thing I've noticed, too, is actually just calling it out as it is. It's like, we're not for everyone. I don't it's like, hard to say that and and not sound like an ass, can I say,

Unknown Speaker  14:24  
Yeah, sure, you're so right, but,

Kaylee Felio  14:27  
but, yeah, it's like, you have to be innovative. You have to think outside of the box if you want to stay where you are. Parts edge is not a solution for you. So that's the other thing I had to realize too, is like, I can't force this.

Kyle Mountsier  14:40  
Like, that's the takeaway, though it's so strong, it's like, no, I don't think you're ready for this, actually.

Kaylee Felio  14:47  
But you say that to people, sometimes they open up, well, maybe I am

Paul J Daly  14:50  
ready for this, right? You're good. Well, you're gonna some people are on the bubble, right? Like, they're right on the edge, and it takes a little extra something to get them to try, but they. Are. They have been like lawyer loitering with the intent to try something. And then there's those who just need to be right. And when you say things like that, you very clearly draw a line where, if that other person has to be the smartest person in the room and their way is the right way, then you're literally wasting both of your time right by and saying that and drawing a line, you maybe encourage some of the people who have been considering to be willing to try it, but you also get the people who are all in to make a deeper connection with you immediately saying, like, Oh, these are my people right now. I have an even more open mind to see and then, like, getting to know as fast as possible is legitimate. I think one of the least appreciated sales tax tactics, absolutely right. Like, how do I get to a no? Because if I can get to a no fast, that's so much better. Like, maybe is the worst. Maybe is the worst place to land. Yes is great. No is just as great. Maybe is the worst.

Kaylee Felio  15:55  
Maybe is the worst. You don't really know what they're thinking. It's just Yeah, I hate, I hate the babies, because it puts it out, it drags it off, and we're wasting everyone's time by doing that. So, yeah, if you're if you're

Paul J Daly  16:07  
explaining, you're losing, that's

Kyle Mountsier  16:08  
how I think. So I'd love to dig in just a little bit, because obviously your process driven back to the subway days. This is, this is a part of who you are. You're now with a company that is doing that. You know, a lot of parts management comes from, like, OEM, portals. It comes from the DMS. It's, it's, it's kind of like legacy, integrated, some level of integrations. What are the innovations that tech is enabling right now for parts managers to, like, change the way they view and manage their inventory?

Kaylee Felio  16:41  
Um, well, it's, we've been around for about 30 years, so I it's new, but it's very like process and very tested and accurate. So I think the biggest thing is the way that the DMS is are set up, are not set up for parts people. That's the biggest thing. You go through a migration, or it was set up by someone that set it up 1520, years ago. So that's the biggest thing, I think we see, is the setups are outdated, and we go in and really ask the questions and figure out the way that they're doing business, and implement a structure, but then create, we've created that technology that that maintains that process. So when you look at all the parts that are added into a DMS every single day and where they need to go, it's almost like a lead getting added into your system, and it has to be tested. The life cycle of a part has to be tested. So that's what we're doing with the data, and it's automatically doing it for the parts manager, so then they can make better decisions on that data and what's getting produced by the DMS and going, you said something about manufacturers too. They're only really, that's the easy stuff. It's, they're guaranteeing what sells. There's, there's a percentage of the inventory that is selling that there's not really picking up or looking at. So we're looking at everything,

Paul J Daly  18:03  
if that makes sense. Recently released your very first white paper.

Kaylee Felio  18:07  
Oh, yeah, we did. Yes, yeah,

Unknown Speaker  18:11  
yeah, that

Paul J Daly  18:14  
was what generated all that conversation. No, tell us about it. Why did you decide to do a white paper and what did you learn through releasing the first one,

Kaylee Felio  18:21  
oh, man, it was, it was such a process, and it was great. And we're going to do another one, and we're going to keep on doing that, because I think it really brings clarity. And the biggest reason why I wanted to do it was just showing the ROI of what your parts department can really bring, and what part such really brings to the dealerships, because we are such a behind the scenes process. It's almost like, if you look at like a little thing going into your it's like connecting the DMS and the human part of it. So, yeah, that was a good process. It's very detailed. It gives, it does give you, you know, tips and things that can help you don't have to sign up for parts edge to, you know, solve all your problems. But yeah, it was, it was much needed. I think we should have done it a long time ago, but

Paul J Daly  19:11  
it is absolutely yeah. And for this white paper, what do you think was the biggest value to someone who gets it or reads it like, what are they going to learn,

Kaylee Felio  19:21  
I think they're going to learn to look at their parts department as a true profit center, to get the tips that they real, or, I guess, kind of that validation that they they need for, you know, true obsolescence, how to minimize that, and also just getting feedback from other people in the industry that are killing it. You know, the biggest thing I love, love to add to that process with interviewing our clients and talking to them and getting their perspective. And one of the one that resonates the most is he was like, you guys, allow me to actually be creative. Most of us, in your day to day, we're we're just, we're just surviving. We don't have time to. Like, really be creative.

Paul J Daly  20:01  
And so, Yep, yeah, you feel like, do you feel like this white paper would be something that you know, maybe a parts manager who is looking to be more creative or flex a little bit would share with their dealer principal as a general manager, Is this one of the things that kind of maybe open the eyes of the leadership to get a little more support for some new tech in parts and try some new things.

Kaylee Felio  20:22  
Yeah, I like how you did that, because that's exactly what it is. Because that's what happens with GM dealers. It's like, they just don't they just, they're busy too,

Kyle Mountsier  20:31  
right? Parts manager came with the building. Parts works. It doesn't suffer. It's all green money. And, you know, and seems like inventory is always good when we run

Speaker 2  20:42  
it in December, right? Yeah. So why change anything? Yeah,

Kyle Mountsier  20:46  
right, yeah. So there's a, there's an upstream awareness that definitely have to, has to happen. I love it. What

Paul J Daly  20:52  
are you looking forward to in the next 12 months, or for the rest of this year? We'll go that rest of 25 what's on the docket? We got seven, six and a half months

Kaylee Felio  21:00  
left. Oh, man, I can't believe that's I know

Paul J Daly  21:03  
it's disgusting because it was coming out of my mouth. He was like,

Kaylee Felio  21:09  
Well, okay, so I'm really on the growth path. And you know, I've been talking about it a little bit in my content, but I'm positioning myself to become the CEO of parts edge. That's my goal. The founder. I love

Paul J Daly  21:21  
that. You just put that out there. I love it.

Kyle Mountsier  21:24  
They already know. Did you tell them? Well,

Kaylee Felio  21:28  
they know. They don't know how it's all gonna happen. And that's what I'm really working on. And, you know, creating that plan of how to actually execute that. Because you can talk about it so much, you can say, Oh, you're going to be the CEO one day, or you can do this one day, but we need to create a plan to actually make that happen. And so that's where, that's my goal. And then, I mean, I don't think I'll be the CEO in six months, but maybe seven,

Paul J Daly  21:51  
maybe seven, let's go. Let's do it. Look we have the future CEO on the show today. Kaylee is always a pleasure. We get to talk to you. It's so great to have you on this show for this show for the first time. Keep doing what you're doing and leading the way and inspiring us as well. Thanks for being with us today. Thanks for having me.

Kyle Mountsier  22:14  
You know the pair? I keep drawing this parallel and I keep you know I you make fun of me every time I tell I say this, Paul me, yeah, I would do such a thing when you when I say this, you're gonna, you're gonna make fun of me again, waiting for it that I think that if used car departments hired bartenders and restaurant managers that were responsible for inventory management and in that pace, right, where, where perishables are a reality, right? And if we looked at a used car more like a perishable, something that needed to be turned we needed to have the right thing for the right time, for the right person, we might, we might be better. And I think, you know, for the parts department, I think it probably maps a little bit more than maybe we all think it does.

Paul J Daly  22:57  
Clarifying statement number one, I have never once made fun of you for saying that clarifying statement number two, I don't know that I've ever heard you say that. Maybe you're talking about Michael, okay, don't try to No,

Michael Cirillo  23:10  
it wasn't me intellectual. Granted, I do forget a thing from time to time. But there are ideas to what you just said now that I'm thinking about it. I mean, there's the hospitality layer. I mean, yes, the inventory management side, and understanding how to track inventory and make sure that it's consumed before perished. But then there's the hospitality side of that.

Paul J Daly  23:31  
I will tell you what I've never heard anyone call their shot on a show like Kaylee just said, I'm going

Michael Cirillo  23:38  
to be the CEO of this company that gets me possible in the car business. I mean, that's why we do what we do, is because we want people to see the possibilities that are available to them inside the car business.

Paul J Daly  23:49  
Well, literally, she's telling the story from sandwich artist to CEO.

Kyle Mountsier  23:52  
Oh, that's a book, that's a song, that's a that's everything. Let's go on behalf of Paul J Daly, Michael Cirillo, myself. Kyle Mountsier, we really hope you enjoyed this conversation and this episode of Auto Collabs. We'll see you next time.

Speaker 3  24:07  
Sign up for our free and fun to read daily email for a free shot of relevant news and automotive retail media and pop culture, you can get it now@asotu.com that's asotu.com if you love this podcast, please leave us a review and share it with a friend. Thanks again for listening. We'll see you next time.

Unknown Speaker  24:39  
Welcome to Auto Collabs. Last.

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