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ClientCarMax - www.carmax.com
LocationHeadquarters | Richmond, VA20-25 new builds and remodels annually, nationwide
Project TypeAutomotive Showroom and Sales Offices
Area SuppliedRetail sales floorCustomer waiting areasRestrooms and sales offices
ProductsFloor Gres Chromtech Italian through body, unglazed porcelain tile, matte and polished 24”x24” and 12”x12” sizesMapei floor preparation, large format tile thin set mortar and grout with a 25-year warranty
CarMax is the nation’s largest retailer of used cars and operates more than 175 stores in 39
states nationwide. CarMax has built their brand upon offering a different sort of car buying
experience with transparency throughout the car-buying process, a large selection of
used vehicles, and a convenient and easy place to sell a vehicle. CarMax has more than
24,000 employees nationwide and for 13 consecutive years has been named as one of the
FORTUNE 100 Best Companies to Work For. During the 12 months ended February 28, 2017,
the company retailed 671,294 used cars and sold 391,686 wholesale vehicles at its in-store
auctions.
Challenge | Stock-outs, long lead times, inconsistent pricing
When Creative Materials contacted the CarMax design team, they had chosen and specified
a neutral through-body tile with technical characteristics suitable for commercial applications
for all CarMax locations. Although the tile offered a great aesthetic and worked well in
the showrooms, it was chosen without a distribution plan to go with it. Each project was
quoted and ordered through regional distributors, pricing was not fixed, and stock was not
inventoried in the USA. The result was stock-outs from local distributors, high pricing, long
lead times, and frequent air freight shipments to finish up projects.
Solution | Consolidated national tile supply program
Creative Materials became aware of the issues that CarMax was facing and completed
a pricing and program assessment. CarMax was paying too much for tile that was either
taking way too long to get to the site, or couldn’t be procured at all by required deadlines.
Creative Materials stepped in to take control of the program and determined that CarMax
was happy with their tile selection, but simply couldn’t tolerate the long delays and regional
stock-out issues. CarMax assumed that the root of the issue was the tile being procured overseas.
CASE STUDY: CARMAX
AUTOMOTIVE SHOWROOM AND SALES OFFICES
CarMax
“Creative Materials
procured the exact
same product from
Italy that CarMax liked.
The inventory was
imported and stocked
in the USA based on
CarMax’s development
and remodel schedule.
Creative Materials utilized
its buying power with the
manufacturer to implement
low, fixed, national account
pricing to ensure all
projects would stay under
budget.”
- Craig Lansley, Director of Client Services,
Creative Materials Corporation
Creative Materials assured CarMax that by implementing a consolidated tile supply program, stock-outs and
delays would never be an issue, no matter where the tile was manufactured. Creative Materials procured the
exact same product from Italy that CarMax liked. The inventory was imported and stocked in the USA based on
CarMax’s development and remodel schedule. Creative Materials utilized its buying power with the manufacturer
to implement low, fixed, national account pricing to ensure all projects would stay under budget.
Result
CarMax no longer experiences stock-outs and receives these additional benefits:
• A 25-year warranty due to setting materials being included the program
• Consolidated jobsite deliveries of all tile and setting materials
• Dedicated account management
• Average tile costs of $3.14/SF vs. $7.00/SF
CarMax projects receive tile in one week or less at fixed prices. The CarMax management team receives monthly
reports showing tile supplied and inventory levels from to ensure ongoing program success
Your brand
Visit porcelaintile.com or call 800.207.2967. Creative Materials will help you implement a consolidated
tile supply program.
SALES-Carmax-cs 10/17
CarMax
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