CSK Auto, Inc.

MEMA Information Services Council Fall

Conference

David DixonSr. Manager, Internet Development

• 6 years with CSK

• 10 years in eCommerce

• Responsible for development of CSK’s internet properties• PartsAmerica.com• CSKProShop.com• CSKAuto.com• Internet-related integration projects

Agenda

• Overview of CSK Auto

• CSK IT Department

• Logistics

• Electronic Communication

• Product Information Management

• eCommerce

Overview of CSK Auto

• Corporate Overview

• Our Stores

• Our Customers

• Competitive Strengths and Strategies

• New Management

Overview of CSK AutoCorporate Overview

• Largest specialty retailer of automotive parts and accessories in the Western United States

• Headquartered in Phoenix, Arizona

• Publicly traded as of March 1998 (NYSE: CAO)

• Number one market position in 22 of our 32 major markets, based on store count

• Stores known by four brand names:• Checker Auto Parts, founded in 1969• Schuck’s Auto Supply, founded in 1917• Kragen Auto Parts, founded in 1947• Murray’s Discount Auto Stores, founded in 1972

Overview of CSK AutoOur Stores

• Average 7500 sq. ft.

• Store-specific mix averaging 16,000 SKUs

• Same-day delivery on additional 65,000 SKUs from strategically located priority parts depots

• Extensive online vendor network provides:• Same-day delivery of additional 250,000 SKUs to most

stores• Next-day delivery of additional 1,000,000 SKUs to all

stores

Overview of CSK AutoOur Customers

• “Do it yourself”• 1300+ retail stores• Retail eCommerce• 83% of net sales for fiscal 2006

• “Do it for me” – the commercial installer• CSK ProShop• 630+ delivery centers• Commercial eCommerce• 17% of net sales for fiscal 2006

Overview of CSK AutoCompetitive Strengths and

Strategies• Leading market position in Western

United States

• Focus on Customer Service

• Efficient store-level information and distribution systems

• Market-specific pricing program

• Drive customer traffic and increase sales base

Overview of CSK AutoNew Management

• Larry Mondry succeeds Maynard Jenkins as CEO

• Brian Woods appointed to position of Executive Vice President – Merchandising

• Conducting comprehensive review of business to improve profitability

CSK IT Department

• IT Overview

• IT Organization

• Systems and Technologies

IT Overview

• Strong alignment with business• Organizational• Strategic

• Project focus• Increase sales• Increase productivity• Reduce costs

• 2007 Information Week 500:• #1 most innovative retailer• #18 most innovative company across all

industries

IT Organization

• Application Development• Warehousing/Distribution• Sales Processing/Inventory Accounting• Merchandising/Replenishment• Finance/Payroll• Commercial Accounts/Special Orders• Store Systems• Store Intranet• Mobile Productivity• Business Intelligence• Internet/eCommerce

IT Organization, continued

• Operations• Computer operations• Network support• LAN support

• Administration• Electronic Parts Catalog• IT finance/contracts• Business continuity

Systems and TechnologiesCore Business Systems

• IBM System i• Warehousing/Distribution• Sales Processing/Inventory Accounting• Merchandising/Replenishment• Commercial Accounts/Special Orders

• PeopleSoft• Financials

Systems and TechnologiesStore Systems

• Point of sale systems• ProfitPro on SCO UNIX• WinDSS on Windows (Murray’s)• Coming soon: DataVantage on Linux

• Store intranet• HR workflow, time/attendance• Graphical EPC• Email• Training

Systems and TechnologiesBusiness Intelligence

• 2.5 TB data warehouse stored on IBM System i

• MicroStrategy 8 provides business users with powerful reporting capabilities

Systems and TechnologiesMobile Productivity

• Field personnel equipped with Windows PDAs• Sales reporting• Store compliance• Weather• Feedback

• Project earned Information Week’s Most Innovative Productivity Project award for 2007

• Java-based web application running on IBM WebSphere Application Server

Systems and TechnologiesElectronic Parts Catalog (EPC)

• Custom catalog management system based on SQL Server 2005

• Provides catalog for several subscribers• Point of sale systems• Graphical EPC• PartsAmerica.com• CSKProShop.com

Systems and TechnologiesInternet/eCommerce

• PartsAmerica.com• Services retail customer• Joint venture with Advance Auto Parts

• CSKProShop.com• Services commercial customer• Provides gateway for direct ordering from

shop management systems

• Both custom-developed sites running on Microsoft platforms

Logistics

• 4 major distribution centers

• 32 Priority Parts depots

• New technologies

LogisticsNew technologies

• RFID• Door scanners producing 98% hit rates• Technology not yet mature• Other major retailers backing off

• Voice picking• Not fast enough• Good pickers with paper can easily

outperform by thinking ahead

Electronic Communication

• Purchasing and invoicing• EDI• XML

• Ordering• Fax• Online vendor-direct ordering (VDO)• Email

Electronic CommunicationPurchasing and Invoicing

• Current EDI support:• Purchase orders• Planning schedules (forecasting)• Sales history• Functional acknowledgements• Advance shipment notifications

• Future EDI support:• Electronic payment• Purchase order confirmation

Electronic CommunicationPurchasing and Invoicing

• Working to move vendors not capable of EDI to proprietary XML format

• Eliminate VANs where possible

• Move to FTP

Electronic CommunicationOrdering

• Online vendors use proprietary CSK message formats• AAIA Business Object Document (BOD)

compatibility in development

• Working to move vendors away from fax and email when possible

• eCommerce site now performing online inventory checks in real-time

Product Information Management

• Catalog standards

• Multiple merchandising platforms

• Data quality

Product Information Management

Catalog Standards

• Member of AAIA, NCMA• AAIA Receivers Group works to build

standards across major catalog players• Activant, AutoZone, Advance, CarQuest,

CSK, NAPA, O’Reilly, Wrenchead (WHI)

Product Information Management

Catalog Standards• Catalog product information

• Accepts PIES XML, versions 4.2, 5.0 (6.0 soon)• CSK proprietary flat-file format for vendors that

cannot provide PIES-compliant data• Other CSK departments require proprietary feeds

• Merchandising• Advertising• Special order pricing

• Could require PIES by end of 2007

• Long-term goal – consolidate internally

Product Information Management

Catalog Standards

• Application data• Catalog internally based on AAIA Legacy• Requires AAIA Legacy flat-file format• Can also accept new ACES XML format• Vendor must show consistency between

Legacy and ACES before CSK will accept ACES exclusively

• Long-term goal - require ACES-compliant data

Product Information Management

Catalog Standards

• Interchange data• Accepts PIES• Accepts new universal flat-file format

• Co-developed by major auto parts retailers

• Specifications to be delivered in coming weeks

• Phasing out older proprietary formats

Product Information Management

Merchandising Platforms

• Now• In-store text-based point-of-sale system• In-store graphical EPC• In-store kiosks and mini-kiosks• PartsAmerica.com• CSKProShop.com

• Future• Graphical EPC in new point-of-sale system

Product Information ManagementData Quality

• Standards and advanced EPC systems mean nothing without quality product data

• Demo

eCommerceUpcoming Initiatives

• PartsAmerica.com• Redesign for usability and merchandising• Product reviews• Offer downloadable repair manuals• Premium vendor placement opportunities

• CSKProShop.com• Integration with additional shop

management systems (Mitchell, VAST, etc.)

Questions?

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