O'Reilly Auto Parts 2015 Annual Report Download - page 15

FORM 10-K
7
Store Layout:
We utilize a computer-assisted store layout system to provide a uniform and consistent front room retail merchandise presentation and
customize our hard-parts inventory assortment to meet the specific needs of a particular market area. Front room merchandise is arranged
to provide easy customer access, maximum selling space and to prominently display high-turnover products and accessories to customers.
To ensure the best customer experience possible, we have selectively implemented bilingual, in-store signage based on the demographics
in each store's geographic area. Aisle displays and end caps are used to feature high-demand, seasonal merchandise, new items and
advertised specials.
Store Automation:
To enhance store-level operations, customer service and reliability, we use Linux servers and IBM I-Series computer systems in our
stores. These systems are linked with the I-Series computers located in each of our DCs. Our point-of-sale system provides immediate
access to our electronic catalog, part images and schematics and pricing information by make, model and year of vehicle. This system
speeds transaction times, reduces the customer's checkout time, ensures accuracy and provides enhanced customer service. Moreover,
our store automation systems capture detailed sales information, which assists in store management, strategic planning, inventory control
and distribution efficiency.
Management Structure
Each of our stores is staffed with a store manager and one or more assistant managers, in addition to parts specialists, retail and/or installer
service specialists and other positions required to meet the specific needs of each store. Each of our 444 district managers has general
supervisory responsibility for an average of ten stores, which provides our stores with a strong operational support.
Store and district managers complete a comprehensive training program to ensure each has a thorough understanding of customer service,
leadership, inventory management and store profitability, as well as all other sales and operational aspects of our business model. Store
and district managers are also required to complete a structured training program that is specific to their position, including attending a
week-long manager development program at the corporate headquarters in Springfield, Missouri. Store and district managers also receive
continuous training through online assignments, field workshops, regional meetings and our annual managers' conference.
We provide financial incentives to all store Team Members through incentive compensation programs. Under our incentive compensation
programs, base salary is augmented by incentive compensation based on individual and store sales and profitability. In addition, each
of our district managers participates in our stock option and bonus programs, and store managers participate in bonus programs based
on their store's performance. We believe our incentive compensation programs significantly increase the motivation and overall
performance of our store Team Members and enhance our ability to attract and retain qualified management and other personnel.
Professional Parts People
We believe our highly trained team of Professional Parts People is essential in providing superior customer service to both DIY and
professional service provider customers. A significant portion of our business is from professional service provider customers; therefore,
our Professional Parts People are required to be highly technically proficient in automotive products. In addition, we have found that
the typical DIY customer often seeks assistance from Professional Parts People, particularly when purchasing hard parts. The ability of
our Professional Parts People to provide such assistance to the DIY customer creates a favorable impression and is a significant factor
in generating repeat DIY business.
We screen prospective Team Members to identify highly motivated individuals who either have experience with automotive parts or
repairs, or automotive aptitude. New store Team Members go through a comprehensive orientation focused on the culture of our Company,
as well as the requirements for their specific job position. Additionally, during their first year of employment, our parts specialists go
through extensive automotive systems and product knowledge training to ensure they are able to provide high levels of service to our
customers. Once all of the required training has been satisfied, our parts specialists become eligible to take the O'Reilly Certified Parts
Professional test. Passing the O'Reilly test helps prepare them to become certified by the National Institute for Automotive Service
Excellence (ASE).
All of our stores have the ability to service professional service provider customers. For this reason, select Team Members in each store
complete extensive sales call training with a regional field sales manager. Afterward, these Team Members spend at least one day per
week calling on existing and potential professional service provider customers. Additionally, each Team Member engaged in such sales
activities participates in quarterly advanced training programs for sales and business development.