![]() That means it must depend heavily on a high-performing distribution network for support. Some are bulky and heavy, some are bulky and light,others are quite small but valuable.ĭespite the proliferation of SKUs in recent years, the company is committed to keeping inventory at the store level to a minimum-24,000 to 26,000 SKUs. Others-like fuel pumps and parts for cars of a specific model and year-move across the counter far less frequently. Some are high-volume items like oil filters or containers of motor oil and windshield washer fluid, with many units sold each day. As a result, the company now carries an unprecedented number of stock-keeping units (SKUs) within its distribution network -more than 40,000 at last count. In fact, cars in general tend to stay on the road much longer these days than their predecessors did. Those tend to be cars that are no longer covered by manufacturers' warranties, but are still seen by their owners as worth investing in for repairs and maintenance. "We know that the sweet spot for us is cars between four and seven years old," explains David Schneider, the company's director of industrial engineering. Market analysis has given Pep Boys a pretty good idea exactly what parts should be in stock at each store. ![]() ![]() Its customers arrive at the stores in every sort of car and light truck imaginable, which guarantees an ongoing demand for tens of thousands of different parts. In business since 1921,the company sells parts, accessories, tires and batteries and provides auto repair and maintenance services through 629 stores in 36 states. Therein lies the challenge for Pep Boys, one of the nation's largest automotive parts dealers. Any auto parts store or garage worth its road salt had better be ready and able to deliver. Whether those parts are for a '79 Mazda, an '86 Ford or an '01 BMW, the cars' owners will want them now. And frustrated drivers will want new parts at a moment's notice. Tires will pop, axles will break, timing belts will wear out, batteries will die. As sure as potholes will appear in the roadways, automobiles will break down this year.
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