O’Reilly Auto Parts
How does the O’Reilly Auto Parts company grow up? O’Reilly Automotive aims to become a leading supplier of automotive components in our market area by providing the best combination of price and quality at the highest service level possible for retail customers, professional installers, and jobbers. O’Reilly Auto Parts started in 1957 with one store and has grown to become one of Japan’s largest auto parts retailers, with more than 4,000 stores (currently expanding). Moreover, O’Reilly Shamrock embodies the three values of honesty, integrity, and diligence and symbolizes a company that has pioneered its luck. So, O’Reilly Automotive has become the third-largest auto parts manufacturer in the United States. It has more than 80,000 employees and more than 5,300 stores in 47 states.
O’Reilly Auto Parts Company history
O’Reilly Automotive, Inc. sells a wide variety of new and refurbished automotive parts, accessories, equipment, and consumables to “DIY” customers. It also sells professional automotive mechanics and service technicians (professional installers). Part of the company’s business consists of wholesale parts sales to independent auto parts stores. O’Reilly also offers machining services but does not offer other repair services or tire sales. As a family-owned company, O’Reilly serves clients in small communities, mainly in the Midwest and South. With approximately 500 stores in 10 states, it became one of the top ten automotive parts chains in the United States in 1998.
In March 2012, O’Reilly selected CorVel as its claims management program partner. He was impressed by CorVel’s integrated approach to providing all claims and managed care services on one platform. In addition, CorVel’s Advocacy 24/7 program, which provides call centers 24 hours a day, 365 days a year, is expected to improve reporting of injuries and reduce overall risk costs.
CorVel used the essential quality assurance and project management principles to implement the O’Reilly program. Corvell’s goal was to meet them as soon as possible and as many times as necessary for strategy development, process building, and resource allocation. O’Reilly had a professional and reliable account manager to supervise the implementation and assure constant communication throughout the process. CorVel worked with O’Reilly to distribute the Advocacy 24/7 Workplace Poster to each location to encourage the use of the program.
Checklist for Success
- Seamless data transfer
- Comprehensive analysis of historical data
- Identify savings opportunities
- Consistent communication
- Program Enhancement Assessment
O’Reilly Auto Parts Growth from 1960 to 1989
In October 1960, O’Reilly founded Ozark Automotive Distributors to purchase parts directly from manufacturers. When it purchases and sells them to independent auto parts dealers in O’Reilly and the Springfield area. The following year, O’Reilly Automotive and Ozark sales totaled $1.3 million.
Initially, O’Reilly Automotive grew slowly. For example, it was July 1965 when the first branch opened in Springfield. In 1975, O’Reilly’s annual sales reached $7 million. And the company built a new warehouse of 52,000 square feet in 223 South Patterson in Springfield to serve nine stores in southwestern Missouri. Chub O’Reilly says the company’s first warehouse was a “tremendous change.”. Later, the company increased its Springfield distribution center capacity to 297,000 square feet and built other distribution centers in Kansas City, MO (93,183 square feet) and Oklahoma City (122,800 square feet). By 1980, Chub O’Reilly’s four children (Charles, Lawrence, David O’Reilly, and Rosalie O’Reilly Uten) had become leaders in the growing family business.
In the early 1980s, business gradually expanded. In February 1983, O’Reilly opened its first store outside Missouri in Bellville, Arkansas. It was a small town near the southern border of Missouri, close to other O’Reilly stores. Belleville is the 38th store acquired by a component company in Harrison, Arkansas when it acquired seven stores.
In 1986, it was decided to open its first store in a city with more than 100,000. In August 1986, O’Reilly opened its first store in Kansas City, Missouri. Later, the company expanded into other cities such as Omaha, Oklahoma City, Tulsa, Des Moines, Wichita, and Kansas City. Still, it continues its basic strategy of having most stores in smaller locations.
In April 1993, O’Reilly became a company after its shares were released. The following year, we renovated stores that comply with the standard design with better lighting, increased parking, high ceilings, and independent counters for professional installers. In 1997, O’Reilly added ten stores in Nebraska and Oklahoma, 8 in Kansas, 7 in Iowa (the first in the state), 4 in Missouri, and 1 in Arkansas, making it a record 259 stores. As of December 31, 1997, O’Reilly owns 131 of these stores, leasing 69 from other companies, and leasing 59 from the O’Reilly family’s real estate investment partnership.
In 1997, product sales were $316.4 million, up 22.1% from 1996, and net income in 1997 was $23.1 million, up from net income in 1996 of $19 million; O’Reilly declared 1997 as “Our best year ever” in its annual report. Total assets ($247.6 million) and shareholders’ equity ($182 million) have reached record highs, and other statistics support the conclusion. In 1997, O’Reilly conducted a share split at the rate of two shares per common share. At the end of 1997, O’Reilly hired 3,945 non-members in parts stores, distribution centers, and headquarters, but massive expansion was imminent.
In 1998, O’Reilly was still a family company. The board members include Chabu O’Reilly, Honorary Chairman; Charlie O’Reilly, Chairman of the Board; David O’Reilly, President, and CEO; Larry O’Reilly, President and CEO; Rosary O’Reilly, Executive Vice President; and Ted Wise, Executive Vice President.
In the automotive parts industry, O’Reilly’s leadership is recognized. Automotive Warehouse Distribution Association honored David O’Reilly, while Automotive Aftermarket presented the Retailers of the Year award to David and Larry O’Reilly. It is partly due to O’Reilly Automotive’s consistent increase in annual sales and net income from 1989 to 1997. This achievement and the acquisition of Hi-Lo in 1998 will make O’Reilly Automotive ready to serve as a leading automotive supplier in the future.
O’Reilly Auto Parts Company vision
O’Reilly Automotive aims to be an overwhelming automotive supplier in the market by providing the best combination of prices. It also aims to be a professional installer and distributor by providing the highest service levels. So, to achieve this mission, O’Reilly provides benefits and compensation system that attracts and maintains people who can meet the company’s growth and success goals.
O’Reilly felt ready to expand and integrate what he called the “still very fragmented” industry in the 1998 and 1997 10-K SEC report. Chain stores such as O’Reilly and its significant competitors could purchase, inventory, and advertise efficiently. It is due to the economies of scale and had a significant advantage over small independent parts stores. In addition, the spread of high-tech electronics such as microcomputers has made it possible to spend money on educating store staff as automobiles become increasingly complex. The age of grease monkeys had long gone.
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