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Goals for the Partnership

AutoZone sought to head off problems that were bound to increase along with company growth. The principal goals of the partnership included the [Pg.404]

Optimization variables for AutoZone included site locations for distribution centers, flows between distribution centers, suppliers, and AutoZone stores, inventory and cycle times, transportation modes, and trade-offs between service and cost. The central feature of the improved AutoZone transportation network was the shift away from a system where suppliers shipped product to each distribution center. This was replaced by supplier shipments only to the nearest center. That center, in turn, would replenish the other centers with products from that supplier. This enabled AutoZone to enjoy the benefits of truckload rather than LTL quantities. AutoZone trucks and selected carriers could now make the distribution center to distribution [Pg.404]

AutoZone was motivated to partner for this transition by the expertise in transportation as well as the information technology already developed and maintained by J.B. Hunt Logistics. Roles for J.B. Hunt Logistics included the following  [Pg.405]

To set up an optimized supply chain, J.B. Himt Logistics pursued an analytical approach that required documentation of movements between nodes of the supply chain, including suppliers, distribution centers, and stores. An important foimdation was the vendor profile. This included physical characteristics of shipments, frequency, mode of shipment, guidelines for cross-dcKks, designated cross-dock, and pick-up schedules. [Pg.405]

After operating the newly designed transportation network for 4 years, AutoZone and J. B. Hunt Logistics have evaluated the results. The following paragraphs compare the before and after conditions with respect to the initial objectives. [Pg.406]


There is basically one goal for the partnership, with possible side benefits. The goal is to save money. When all the dust settles, that is it. However, there are associated benefits, the best of which is to minimize or even do away with adversarial relationships. It may be wishful thinking to believe that these will be completely eliminated. A related, but very important, benefit is to build trust between the parties. This is necessary to achieve the goal. [Pg.440]


See other pages where Goals for the Partnership is mentioned: [Pg.404]    [Pg.436]   


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