O'Reilly Auto Parts 2004 Annual Report Download - page 8

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ELAPSED TIME
Strategic Distribution Systems
2005 will be a very exciting year for us in the area of distribution. In early spring, we will be opening our
eleventh distribution center in Atlanta, Georgia. This new distribution center will be a state-of-the-art
facility, using all of the best practices and systems developed in our other distribution centers. This
facility will be approximately 350,000 square feet and have the capacity to serve 250 stores. The
opening of our distribution center in the Atlanta market will enable us to continue expansion efforts
in the southeast market area, while being consistent in our contiguous growth philosophy with
capability of same day or nightly delivery to every store.
In 2004 we began to utilize slotting software that we will fully employ throughout all distribution
centers in 2005. This software allows us to determine the flow of products in and out of our distribution
centers, while also evaluating the various dimensions of these products. Once that information is
determined, we take into account product size to ensure that we are maximizing our shelf space. We
are also able to stock inventory in the distribution centers based on product demand. Products with the
highest demand are placed in locations that are most accessible to team members who are picking those
orders in the distribution centers.
We are also in the process of implementing a “hands free/eyes free” voice directed picking system that
will allow our distribution center team members to be more productive. Team members that pick
orders will begin wearing headsets connected to a device on their belt that communicates with our
existing distribution systems. Verbal pick instructions are given thereby eliminating the need for paper
picking documents. By eliminating the picking documents, team members can work more accurately
and productively. This enhancement to distribution will result in continued reductions in distribution
and transportation expenses.
6O’REILLY AUTOMOTIVE
Greg Henslee
Chief Executive Officer
and Co-President