CarMax 2005 Annual Report Download - page 12

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Consumer
Offer
Purchasing/
Inventory
Management
Reconditioning
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Finance
Originations
10
CARMAX 2005 STORE MANAGEMENT TEAMS
INFORMATION SYSTEMS
■Our systems capture data on every aspect of our business.
We collect data on activities such as:
•Customer visits.
•Sales consultant/customer engagements.
•Appraisals.
•Extended service plan sales.
•Financings.
■Every retail vehicle is electronically tracked through its
CarMax life from purchase through reconditioning and test
drives to ultimate sale.We also capture data on vehicles we
wholesale, helping us track market pricing changes.
■This information is used to continually enhance and
refine our processes and systems, as well as to provide the
basis for managing our associates’ performance.
■We believe our processes and systems provide us with a
key competitive advantage.These enabling technologies
have been developed over our more than 11-year history,
and we are dedicated to their continuous improvement to
maintain this competitive edge.
PROPRIETARY
PROCESSES
AND
SYSTEMS
OUR BUSINESS IS NOT UNLIKE AN ICEBERG. OUR UNIQUE CONSUMER OFFER IS WHAT DRAWS CUSTOMERS
TO OUR STORES; IT IS WHAT CAN BE SEEN “ABOVE THE WATERLINE.” HOWEVER, OUR ASSOCIATES’
DEVELOPMENT AND USE OF KEY PROCESSES AND SYSTEMS “BELOW THE WATERLINE” ARE WHAT MAKE
OUR BUSINESS SUCCESSFUL — SOPHISTICATED PURCHASING AND INVENTORY MANAGEMENT, RECONDI-
TIONING, AND FINANCE ORIGINATIONS, ALL SUPPORTED BY PROPRIETARY INFORMATION SYSTEMS.
4
PROPRIETARY PROCESSES AND SYSTEMS