AutoZone Moves to Pay-on-Scan

Adopts viaLink services to bring increased visibility to automotive aftermarket supply chain

Dallas — June 6, 2003 — Auto supplies retailer AutoZone is set to use services from provider viaLink in a bid to improve its supply chain visibility and enable pay-on-scan /scan-based trading with its suppliers.

AutoZone sells auto and light truck parts, chemicals and accessories through more than 3,152 throughout the United States and Mexico.

viaLink said its services would provide the company with data synchronization and visibility to consumer demand at the store level as a foundation for collaborative processes designed to increase sales and customer satisfaction for both AutoZone and its suppliers.

Suppliers participating in the program will have access to perpetual inventory and product flow reporting, as well as a clear picture of new product status and distribution, according to viaLink. Various exception reports will support suppliers in assuring the ongoing accuracy of pricing and the ability to identify and act on potential out-of-stock and overstock situations.

"We see this as a key opportunity to engage our suppliers more actively in our primary business goal of serving our customers in our stores," said Brett Easley, senior vice president of merchandising at AutoZone. "First, this will give our suppliers actionable consumer sales visibility. Second, viaLink will help us enable the full range of our suppliers to move quickly to adopt this new business process, regardless of their technical capabilities."

Easley added that AutoZone's agreement with viaLink would enable the company to implement this initiative consistent with the recommendations of a recent study sponsored by the Automotive Aftermarket Industry Association (AAIA) that found pay-on-scan to be a promising opportunity for the industry to use a process that establishes foundational collaborative building blocks.