Advance Auto Parts has implemented solutions from workforce and warehouse management software company JDA Software to help generate more efficient forecasts and keep pace with fluctuating consumer demands.
Advance Auto Parts previously used JDA Software for space and category management, as well as replenishment for its 3,900 stores nationwide. In 2010, the retailer expanded the role of these solutions by adding physical supply chain infrastructure, and incorporating new technology solutions and business processes to optimize its warehouse, workforce, execution and performance management.
“We were looking to figure out, how can we get more inventory into our markets? How can we ensure fast delivery to our customers?” said Josh Lankford, Director of Supply Chain Solution Delivery at Advance Auto Parts. Fundamentally, we needed less SKU depth and more SKU breadth. And that had implications all the way back through the supply chain.”
Advance Auto Parts constructed a new 550,000 square-foot facility designed to replenish stores in a targeted rollout region on a daily basis. To support these new facilities, the retailer added warehouse management and workforce management solutions from RedPrairie, which merged with JDA in January 2013.
Since implementing the JDA solutions, Advance Auto Parts has seen the following results:
- Reduced the sale-to-replenishment cycle time from up to 48 hours to 12 hours;
- Increased from 10 to 15 configuration changes per week;
- Improved SKU breadth, allowing 20% more hard parts in stores; and
- Decreased out-of-stocks, leading to a decrease in lost sales.
“The name of the game in our business is inventory availability and speed of delivery,” Lankford said. “If you have a car that’s broken down, tomorrow morning isn’t good enough. You need that part now, so that’s what we endeavor to do. That really comes through in our motto: Service is our best part. We need to make sure that we have the parts available when our customers need them.”