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CSK Auto, Inc. MEMA Information Services Council Fall Conference. David Dixon Sr. Manager, Internet Development. 6 years with CSK 10 years in eCommerce Responsible for development of CSK’s internet properties PartsAmerica.com CSKProShop.com CSKAuto.com
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CSK Auto, Inc. MEMA Information Services Council Fall Conference
David DixonSr. Manager, Internet Development • 6 years with CSK • 10 years in eCommerce • Responsible for development of CSK’s internet properties • PartsAmerica.com • CSKProShop.com • CSKAuto.com • Internet-related integration projects
Agenda • Overview of CSK Auto • CSK IT Department • Logistics • Electronic Communication • Product Information Management • eCommerce
Overview of CSK Auto • Corporate Overview • Our Stores • Our Customers • Competitive Strengths and Strategies • New Management
Overview of CSK AutoCorporate Overview • Largest specialty retailer of automotive parts and accessories in the Western United States • Headquartered in Phoenix, Arizona • Publicly traded as of March 1998 (NYSE: CAO) • Number one market position in 22 of our 32 major markets, based on store count • Stores known by four brand names: • Checker Auto Parts, founded in 1969 • Schuck’s Auto Supply, founded in 1917 • Kragen Auto Parts, founded in 1947 • Murray’s Discount Auto Stores, founded in 1972
Overview of CSK AutoOur Stores • Average 7500 sq. ft. • Store-specific mix averaging 16,000 SKUs • Same-day delivery on additional 65,000 SKUs from strategically located priority parts depots • Extensive online vendor network provides: • Same-day delivery of additional 250,000 SKUs to most stores • Next-day delivery of additional 1,000,000 SKUs to all stores
Overview of CSK AutoOur Customers • “Do it yourself” • 1300+ retail stores • Retail eCommerce • 83% of net sales for fiscal 2006 • “Do it for me” – the commercial installer • CSK ProShop • 630+ delivery centers • Commercial eCommerce • 17% of net sales for fiscal 2006
Overview of CSK AutoCompetitive Strengths and Strategies • Leading market position in Western United States • Focus on Customer Service • Efficient store-level information and distribution systems • Market-specific pricing program • Drive customer traffic and increase sales base
Overview of CSK AutoNew Management • Larry Mondry succeeds Maynard Jenkins as CEO • Brian Woods appointed to position of Executive Vice President – Merchandising • Conducting comprehensive review of business to improve profitability
CSK IT Department • IT Overview • IT Organization • Systems and Technologies
IT Overview • Strong alignment with business • Organizational • Strategic • Project focus • Increase sales • Increase productivity • Reduce costs • 2007 Information Week 500: • #1 most innovative retailer • #18 most innovative company across all industries
IT Organization • Application Development • Warehousing/Distribution • Sales Processing/Inventory Accounting • Merchandising/Replenishment • Finance/Payroll • Commercial Accounts/Special Orders • Store Systems • Store Intranet • Mobile Productivity • Business Intelligence • Internet/eCommerce
IT Organization, continued • Operations • Computer operations • Network support • LAN support • Administration • Electronic Parts Catalog • IT finance/contracts • Business continuity
Systems and TechnologiesCore Business Systems • IBM System i • Warehousing/Distribution • Sales Processing/Inventory Accounting • Merchandising/Replenishment • Commercial Accounts/Special Orders • PeopleSoft • Financials
Systems and TechnologiesStore Systems • Point of sale systems • ProfitPro on SCO UNIX • WinDSS on Windows (Murray’s) • Coming soon: DataVantage on Linux • Store intranet • HR workflow, time/attendance • Graphical EPC • Email • Training
Systems and TechnologiesBusiness Intelligence • 2.5 TB data warehouse stored on IBM System i • MicroStrategy 8 provides business users with powerful reporting capabilities
Systems and TechnologiesMobile Productivity • Field personnel equipped with Windows PDAs • Sales reporting • Store compliance • Weather • Feedback • Project earned Information Week’s Most Innovative Productivity Project award for 2007 • Java-based web application running on IBM WebSphere Application Server
Systems and TechnologiesElectronic Parts Catalog (EPC) • Custom catalog management system based on SQL Server 2005 • Provides catalog for several subscribers • Point of sale systems • Graphical EPC • PartsAmerica.com • CSKProShop.com
Systems and TechnologiesInternet/eCommerce • PartsAmerica.com • Services retail customer • Joint venture with Advance Auto Parts • CSKProShop.com • Services commercial customer • Provides gateway for direct ordering from shop management systems • Both custom-developed sites running on Microsoft platforms
Logistics • 4 major distribution centers • 32 Priority Parts depots • New technologies
LogisticsNew technologies • RFID • Door scanners producing 98% hit rates • Technology not yet mature • Other major retailers backing off • Voice picking • Not fast enough • Good pickers with paper can easily outperform by thinking ahead
Electronic Communication • Purchasing and invoicing • EDI • XML • Ordering • Fax • Online vendor-direct ordering (VDO) • Email
Electronic CommunicationPurchasing and Invoicing • Current EDI support: • Purchase orders • Planning schedules (forecasting) • Sales history • Functional acknowledgements • Advance shipment notifications • Future EDI support: • Electronic payment • Purchase order confirmation
Electronic CommunicationPurchasing and Invoicing • Working to move vendors not capable of EDI to proprietary XML format • Eliminate VANs where possible • Move to FTP
Electronic CommunicationOrdering • Online vendors use proprietary CSK message formats • AAIA Business Object Document (BOD) compatibility in development • Working to move vendors away from fax and email when possible • eCommerce site now performing online inventory checks in real-time
Product Information Management • Catalog standards • Multiple merchandising platforms • Data quality
Product Information ManagementCatalog Standards • Member of AAIA, NCMA • AAIA Receivers Group works to build standards across major catalog players • Activant, AutoZone, Advance, CarQuest, CSK, NAPA, O’Reilly, Wrenchead (WHI)
Product Information ManagementCatalog Standards • Catalog product information • Accepts PIES XML, versions 4.2, 5.0 (6.0 soon) • CSK proprietary flat-file format for vendors that cannot provide PIES-compliant data • Other CSK departments require proprietary feeds • Merchandising • Advertising • Special order pricing • Could require PIES by end of 2007 • Long-term goal – consolidate internally
Product Information ManagementCatalog Standards • Application data • Catalog internally based on AAIA Legacy • Requires AAIA Legacy flat-file format • Can also accept new ACES XML format • Vendor must show consistency between Legacy and ACES before CSK will accept ACES exclusively • Long-term goal - require ACES-compliant data
Product Information ManagementCatalog Standards • Interchange data • Accepts PIES • Accepts new universal flat-file format • Co-developed by major auto parts retailers • Specifications to be delivered in coming weeks • Phasing out older proprietary formats
Product Information ManagementMerchandising Platforms • Now • In-store text-based point-of-sale system • In-store graphical EPC • In-store kiosks and mini-kiosks • PartsAmerica.com • CSKProShop.com • Future • Graphical EPC in new point-of-sale system
Product Information ManagementData Quality • Standards and advanced EPC systems mean nothing without quality product data • Demo
eCommerceUpcoming Initiatives • PartsAmerica.com • Redesign for usability and merchandising • Product reviews • Offer downloadable repair manuals • Premium vendor placement opportunities • CSKProShop.com • Integration with additional shop management systems (Mitchell, VAST, etc.)