ADDING VALUE THROUGH SUPPLY CHAIN INTEGRATION AUTO PARTS RETAILING

AutoZone is now America's leading auto parts retail chain. In 1995, AutoZone was experiencing rapid growth, opening approximately one store per day. AutoZone senior management recognized the need to strengthen their supply chain infrastructure. After discussions with leading third party logistics firms, AutoZone selected J.B. Hunt Logistics to become their transportation logistics strategic partner. A new supply chain infrastructure was designed and implemented that converted 77% of supplier inbound to freight collect. New cross-dock processes were implemented in six distribution centers that effected a drastic shift in less-than-truckload (LTL) shipments to truckload mode conversion. As a result, LTL inbound shipments were reduced from 85% to less than 2%. This created dramatic decreases in transit time from 7 days to 1.5 days, transportation costs were reduced by 20%, inventory costs were reduced by 50%, and damage was literally eliminated. In addition, the integration of inbound and outbound logistics has enhanced supply chain visibility and provided AutoZone with a 25% increase in the utilization of their private fleet.

  • Corporate Authors:

    Council of Logistics Management

    2805 Butterfield Road, Suite 200
    Oak Brook, IL  United States  60523
  • Authors:
    • Longo, M E
    • Sutherland, J L
  • Conference:
  • Publication Date: 1999

Language

  • English

Media Info

  • Features: Figures;
  • Pagination: p. 25-33

Subject/Index Terms

Filing Info

  • Accession Number: 00788891
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Mar 12 2000 12:00AM