AutoZone distribution is the largest automotive parts distributor in the world. The company has a wide range of DCs and mega hubs that are handling operations management efficiently.
The company ensures a powerful system by providing all types of common and rare parts with same-day or next-day delivery.
In this blog, you will learn about how many AutoZone distribution centers there are and how they are working.
Top Stats
- Founded in 1979 as Auto Shack, rebranded to AutoZone in 1987
- Operates over 7,140 stores globally
- 6,300+ stores in the United States
- More than 700 stores in Mexico
- Over 100 stores in Brazil
- Operates more than 100 distribution centers globally
- 58 mega hub stores existed in 2021
- 101 mega hub stores were operational as of May 2024
- AutoZone aims to expand to 200 mega hub stores
- Each mega hub can carry up to 110,000 SKUs
- Mega hubs span 30,000 to 50,000 square feet
- One mega hub supports 100+ nearby stores
- Distribution centers support same-day or next-day delivery
- DCs in Mexico support 838 stores
- DCs in Brazil support 141 stores
- New DCs planned in California and Virginia for regional expansion
What Is a Distribution Center?
Definition and Role
A distribution center is a facility that stores and supplies goods. The facility can receive or distribute goods directly to the stores and retailers. It’s like a warehouse that stores goods for fast and efficient work. A distribution center is more like a logistics hub that stores goods for a long duration so that it can focus on the rapid fulfillment of orders.
According to the Council of Supply Chain Management, a distribution center (DC) is:
“A facility that is used for receipt, temporary storage, and redistribution of goods according to customer orders.”
How is it different from regular stores?
Here are the key differences between a distribution center and a regular store:
- Central distribution centers are used to store goods for a long duration, where stores sell directly to customers.
- DC works as B2B, whereas stores work as B2C.
- DC has more and higher storage inventory, whereas stores have limited and customer-oriented inventory.
- DCs are mostly located outside of the city, whereas stores are located in highly populated areas.
Importance in the Auto Industry
In the auto industry, distribution centers play the role of the backbone. Here is the overview of the importance of the auto industry:
Fast Delivery
In the auto industry, vehicles normally require the availability of auto parts and delivery on the same day. Distribution centers provide them with same-day or next-day delivery, according to the report. Autozone’s distribution network helps 6000 stores deal with out-of-stock situations.
Inventory Management
DCs allow the management of inventory by stocking products in bulk quantities so they can immediately respond to customers’ demand. By storing the product, they manage the availability of products across all stores. A good distribution reduces the turnover and provides products without overstocking them.
Store Support
AutoZone distribution centers work as a mega hub for stores. They provide parts that are unavailable in the store and make many deliveries within a 100-mile radius. These DC centers provide hard-to-handle parts and make them more efficient.
Sources:
AutoZone’s Distribution Network Overview
Company Background
AutoZone is a famous automotive parts replacement store and distribution center in the USA. The company was founded in 1979 with the name of Auto Shack, in Forest City, Arkansas. Later, this company rebranded its name and changed it to AutoZone in 1987. According to the stats, the AutoZone company has grown into 100 countries with 7100 stores across the US, Brazil, Mexico, and Puerto Rico. This company has 6300 stores in the United States, 700 in Mexico, and 100 in Brazil.
Supply Chain Strategy
The supply chain strategy of AutoZone is designed to be efficient and meet high demands. This model includes standard distribution centers that fill up inventories in the stores. Their second strategy involves Hub stores that have broader availability of products and deliver to nearby locations. The last is mega hub stores. This model supports 100 stores and delivers the product within a 100-mile radius with same-day or next-day delivery.
Scale of Operations
Scale of Operations
According to the stats of 2023-2024, AutoZone operates in more than 100 distribution centers along with 101 mega hub stores in the USA. Each mega hub store can manage 100+ stores with same-day or next-day delivery.
International and US locations
AutoZone network is mainly based in the United States, having 6,300 retail stores. In the US, DCs and mega hubs are located in Texas, Virginia, Nevada, Tennessee, and California.
Internationally, there are 700 stores in Mexico and 100 stores in Brazil.
How Many AutoZone Distribution Centers Are There?
Total Number of DCs
There is no exact data available on the distribution of stores, but it has been reported that there are 7,140 stores globally. In 2023, AutoZone opened 20 new mega hub stores, expanding the hub network. According to the data in May 2024, this company opened 101 new mega hub stores towards their goal of opening 200 mega hub stores.
Mega Hub Distribution Centers
Mega hub stores are oversized facilities that carry 110,000 SKUs and span a radius of 30,000 to 50,000 square feet. These hubs serve nearby stores by providing same-day or next-day delivery. In 2021, there were 58 mega hub stores. According to the report for 2024, there are 101 stores.
Regional and International Facilities
In the USA, mega hubs and DCs are located in different states such as California, Virginia, Tennessee, Nevada, and many more. The company is planning to open new DCs in California and strengthen the East Coast region of Virginia.
DCs located in Mexico are supporting 838 stores across the country. In Brazil, this company has 100 DCs and supports 141 stores.
Role and Benefits of AutoZone Distribution Centers
Faster Delivery and Store Replenishment
Distribution centers are designed to increase the efficiency of operational management. These DCs stocked the demanded parts and served the nearby stores. A mega hub is normally located in a region that serves all stores nearby. DCs receive daily shipments and keep their inventory on shelves without overstocking.
These hubs provide same-day or next-day delivery, which is very hard for a store to manage. They receive many shipments daily for stores, so the customers’ wheels keep moving.
Improved Customer Experience
A well-structured DC network means a wide range of products that are not available in common stores. These DCs include a wide range of parts, from commonly used parts to rare ones. AutoZone ensures that customers do not have to wait for days by providing same-day or next-day delivery. AutoZone has a logistical edge in the market as compared to its competitors. By providing DCs and a wide range of products and quick delivery, AutoZone makes itself superior in the industry.
Sources:
www.fool.com
Conclusion
AutoZone is a well-known name in the automotive industry. This company has 7000+ stores across the globe. There are 6300 stores in the US and 100 stores in Brazil. Each mega hub handles the nearby stores with multiple daily deliveries. Mega hub stores serve every store within a radius of 100 miles. By handling everything efficiently, they are providing speed and reliability to their customers.