AutoZone is upgrading its Brazilian supply chain.
The automotive replacement parts and accessories retailer is bringing configurable forecasting and replenishment capabilities to its South American operation.
AutoZone is building on an existing partnership with unified supply chain technology provider Relex Solutions to upgrade its distribution center performance in the Brazil market. The retailer began implementing Relex demand forecasting and replenishment solutions in its distribution centers in the U.S. and Mexico in 2019.
Based on successful implementation and results across the U.S. and Mexico, AutoZone has now decided to implement Relex Solutions to support distribution center operations in Brazil. This expansion is a part of AutoZone's broader efforts to streamline company-wide supply chain processes and enhance operational efficiency and scalability.
Specific results AutoZone has achieved in the U.S. and Mexico include enhancing demand forecasting and reducing inventory levels to drive sales by improving in-stock availability and service levels at distribution centers. The retailer is also targeting cost savings by improving the flow of goods through its hubs.
Brazil poses some unique challenges to Auto Zone’s demand forecasting and replenishment efforts due to the country’s independent sourcing practices and varied makes and models of cars in the South American market.
AutoZone’s existing supply chain system in Brazil is highly manual and independent of the systems used in the U.S. and Mexico. The retailer will leverage the existing solution used in the U.S. and Mexico while receiving South American support from Relex.
“We are fully committed to driving planning and ordering efficiency across our teams," said Michelle Borninkhof, senior VP & CIO, customer satisfaction, AutoZone. "Relex provides solutions with tremendous flexibility, enabling faster decision-making and enhancing our exception management. With their support, we are confident in our ability to optimize our end-to-end supply chain across our global operations.”
"We are thrilled to announce the expansion of our partnership with AutoZone," said Keith Adams, senior VP of North America, Relex Solutions. "This critical step highlights the value we bring in driving tangible business benefits while ensuring scalability and adaptability for evolving market demands. We are proud to support AutoZone in their pursuit of an optimized and future-ready supply chain, and we look forward to a continued successful collaboration."
As of Aug. 26, 2023, Auto Zone had 6,300 stores in the U.S., 740 in Mexico and 100 in Brazil for a total store count of 7,140.
[Read more: PriceSmart deploys Relex in Central and South America]