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AutoZone Before the Partnership

AutoZone at the turn of the century had annual sales of about 4 billion. It sold its products through 2750 AutoZone stores and 43 TruckPro stores in 14 states. Its growth in recent years has been at a 27% rate, putting AutoZone in the Fortune 500. At the time of its commitment to its partnership with J.B. Hunt in 1995, AutoZone had 1143 stores, with a plan to add a store a day to its network. [Pg.403]

As a retailer, AutoZone s success relied heavily on the effectiveness of its supply chain. In 1995, AutoZone was finding that its growth was being held back by operational issues that led to management distraction and added cost. Among the issues cited were the problems of processing inbound product from a variety of suppliers around the country. [Pg.403]

Each of AutoZone s seven distribution centers at the time received shipments from each supplier. The result was that many incoming shipments. [Pg.403]

Companies that receive goods at multiple distribution centers must also forecast demand at that level. This goes against the idea of the demand-driven supply chain, since each distribution center must make its own forecast. The practice adds to the inventory required to maintain a particular service level. Our description of postponement in Chapters 26 and 27 provided examples. Just as lack of commonality in design causes multiple line items that must be forecast, so does proliferation of stocking points. [Pg.404]

AutoZone also had limited resources for information technology. Other areas of fhe company were considered a priority over the requirements of inbound fransporfahon. The components of its supply chain were seen to be unintegrated. These included merchandising, where decisions are made regarding product lines distribution centers transportation and accoimting and finance. [Pg.404]


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