Advance Auto Parts 2014 Annual Report Download - page 14

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7
2015 is to begin aligning the product offering in our Advance Auto Parts and Carquest distribution centers and to eventually
connect their respective systems so we can operate as one integrated supply chain. Worldpac will continue to operate four
distribution centers to service its branches and provide cross-sourcing to our Advance Auto Parts and Carquest stores.
In addition to the distribution centers acquired with GPI, we also opened our newest distribution center in Hartford, CT in
late 2014. This facility incorporates our more advanced warehouse management system, similar to the system utilized by our
Remington, IN facility which opened in 2012. This technology has furthered our ability to roll out daily replenishment to the
stores served by these facilities. Our supply chain initiatives to further increase the efficient utilization of our distribution
capacity, including planning for the roll-out of the advanced technology used at the Hartford and Remington facilities to other
facilities in our supply chain network, will now get incorporated into our overall integration plan.
Marketing & Advertising. Our marketing and advertising program is designed to drive brand awareness, consideration and
omni-channel traffic by positioning Advance Auto Parts as the leader in parts availability and project support within the
aftermarket auto parts category. We strive to exceed our customers' expectations end to end through a comprehensive online
experience, extensive parts assortment, speed at the parts counter and our DIY customer loyalty program, Speed Perks.
The current campaign was developed based on extensive research with our customers. The campaign targets core DIY
customers and emphasizes our understanding of what motivates their passion to work on cars. It is built around a multi-channel
communications plan which brings together radio, television, direct marketing, mobile and social media and in-store and event
signage directed to both our general market and Hispanic and Latino customers.
We also have Commercial marketing programs that are designed to build loyalty with our Commercial customers who rely
on us for quality products and services each and every day so they can in turn successfully serve their customers. In addition to
various loyalty and rebate programs, we offer dedicated training support and other eServices to our Commercial customers,
including:
TECH-NET Professional Auto Service® - is our marketing solutions program offered to the commercial shop owner to help
them attract and retain customers by having consistent branding, banner programs and solutions for attracting automotive
technicians and other technical resources.
CARQUEST Technical Institute® (CTI) - offers our valued customers the tools and training to stay ahead of an increasingly
competitive and fast-changing marketplace. We target service facility owners, shop managers, service consultants and
professional technicians. CTI instructors have over 350 ASE certifications and understand the technical skills required to be
productive and profitable and reach over 25,000 technicians annually.
MotoShop - is a technology solution portfolio consisting of a suite of electronic tools that supports our Commercial customers
with: (i) online marketing solutions, (ii) fully searchable diagnostic and repair service resources, (iii) online shop tech training
and (iv) a shop management system.
Seasonality
Our business is somewhat seasonal in nature, with the highest sales usually occurring in the spring and summer months. In
addition, our business can be affected by weather conditions. While unusually heavy precipitation tends to soften sales as
elective maintenance is deferred during such periods, extremely hot or cold weather tends to enhance sales by causing
automotive parts to fail at an accelerated rate. Our fourth quarter is generally our most volatile as weather and spending trade-
offs typically influence our Commercial and DIY sales.
Team Members
As of February 26, 2015, we employed approximately 41,600 full-time Team Members and approximately 31,400 part-
time Team Members. Our workforce consisted of 87% of our Team Members employed in store-level operations, 9% employed
in distribution and 4% employed in our corporate offices. As of February 26, 2015, less than 1% of our Team Members were
represented by labor unions. We have never experienced any labor disruption. We believe that our Team Member relations are
solid.