O'Reilly vs Advance Auto Parts: Supply Chain Comparison
Former Regional Director at O'Reilly Auto Parts
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O'Reilly vs Advance Auto Parts: Supply Chain Comparison(May 9, 2024)
Former Regional Director at O'Reilly Auto Parts
The expert is a former Regional Director at O'Reilly Auto Parts and a former District Manager at Advance Auto Parts. Notably, he was the only Regional Director at O'Reilly who had previously worked at Advance Auto Parts. He was instrumental in growing Advance Auto Parts from 300 to 1200 stores and initiated 85 new stores throughout Ohio, Kentucky, and West Virginia. His responsibilities included inventory management, overseeing store and district managers, managing outside sales teams, and pricing.
Interview Transcript
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Why the difference in the two approaches?
The difference between the two approaches (O'Reilly vs Advance Auto Parts) is that Advance focuses on A, B, and C items, aiming for a quick return. They consider cost as well. One thing O'Reilly did very early on was to include their distribution cost in the store pricing. This makes it easier for them to implement incremental improvements, unlike Advance, which finds it difficult because their system is built around one DC delivery per week. When they increased this to two deliveries, which started around five to seven years ago for many stores, it was a significant hit to their P&L.
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