AutoZone Saved Millions in Labor Costs Using This One System

Although labor has served as AutoZone’s largest expense, the retailer for years struggled with inflexible workforce management systems that were capped off by poor integrations. In “AutoZone's Road to Optimization, How They Improved Labor Scheduling and Reduced Labor Costs,” RIS spoke with Tom Newbern, executive VP of store operations at AutoZone, and Kevin Tapscott, VP of solution consulting Americas at Reflexis Systems, to explore how the retailer saved millions by implementing intelligent workforce management across its 6,000 stores. The initiative helped the retailer save by using one system for time and attendance and labor scheduling, as well as improve the accuracy of its labor forecast, and — perhaps most importantly — address the new safety in labor challenges brought on by the COVID-19 pandemic. Presented here is an edited version of the webinar transcript, along with the slides from the event. Tim Denman: Welcome, everyone, to the “AutoZone's Road to Optimization, How They Improved Labor Scheduling and Reduced Labor Costs Webinar,” which is hosted by RIS News and presented in partnership with Reflexis. I'm Tim Denman, editor-in-chief of RIS. I thank you for joining us today. With us today tell AutoZone's story are Tom Newbern of AutoZone and Kevin Tapscott of Reflexis Systems. Gentlemen, thanks for being here today. I'm going to hand the mic over to Kevin who's going to walk us through a piece of AutoZone's incredible labor story. Kevin Tapscott: Thanks Tim, so I'm really excited to be with everyone today. We have an awesome webinar planned, and I know everyone's going to learn something from it. So the agenda today looks like this. In just a moment, I'll be turning it over to Tom Newbern from AutoZone, and he's going to tell us a little bit about AutoZone. Then he's going to lead a discussion about mitigating the impact of rising labor costs and responding to a pandemic. After that, Tom and I are going to discuss a really cool story about going the extra mile, and an email that came in from an AutoZone customer that really frames that topic up nicely. Then we'll move onto Q&A. Before Tom gets started, I'd like to share a little bit about Reflexis and what we do. Reflexis provides AI powered workforce management, task execution, and communication solutions for over 275 multi-site organizations in retail, hospitality, and banking. To give you an idea of the scale of what we do for frontline retail employees and their leaders in store and field, I'll share some pretty eye popping numbers. In 2019, Reflexis enabled retailers to create over 2 billion tasks across 6 million employees. Additionally, we created 400 millions shifts for employees working in 240,000 stores. AutoZone is a really important part of the Reflexis family and we're really excited to have Tom with us today. One final important part of today before Tom begins is our first poll. So let's get to that now. What software solutions do you feel are most important to improving store operations? Your options are listed, you can select more than one, between advanced labor scheduling, time and attendance, site auditing, task management, and service options such as customer appointment scheduling. So you can select more than one, it'll be open for 20 second. We'll share the poll results after Tom's presentation. Now over to you, Tom, as we continue. Tom Newbern: Great, thank you very much. I appreciate it, Kevin. Thank you all for joining us this afternoon. I look forward to spending a little time with you. First of all, my name is Tom Newbern, I'm the executive vice president of store operations, commercial loss prevention and all data for AutoZone, Inc. I'm going to spend a little time with you today to walk through a few things. We're going to spend some time first talking about AutoZone, so bear with me on that. Then we'll talk about where we were prior to our engagement with Reflexis, our current state, and some key successes and future plans. Here's a forward looking statement, I'll leave that on there for a few seconds to make sure that I don't get into any trouble with the SEC. So this first slide is really talking about AutoZone's culture. We have a culture of always putting customers first; it's definitely what sets us apart from our competition. It simply means treating every customer as if they're the only customer. Why do I start with this slide? We are a small box retailer, average store size is around 7,000 square foot, and 70% of the customers that walk through our doors come to our counters for assistance. So the importance of having the right AutoZoner at the right time makes all of this culture and our expectations of putting customers first possible. Now, a little bit about AutoZone. Currently, we have 6,400 stores, 5,800 in the US, 610 in Mexico, and 38 stores in Brazil. Just a few quick slides about our financial results. You can see on our sales and EBITDA, a very, very nice trend. Very steady same store sales performance. We do go up and down depending on a few factors, weather, economy, etc. So again, the importance of having flexibility in your workforce management system is extremely important. One of the slides that we're most proud of is very consistent, predictable growth in our EPS. You can see a 10-year cater of over 18%. Before I go to this slide, I just again, if you took a look at those financials, we're pretty proud of where we are and what we do financially. Labor, of course, is our largest expense. We're incredibly dialed in to making sure that we manage that part of the business very closely. We've done that in partnership with Reflexis since 2008. Some of the pain points we had prior to our doing business with Reflexis, incredibly inflexible system. Lack of self-service options, in fact, no self-service options. Very poor system integration, and our lowest workload level that we could schedule to was 30-minute increments. Our current state, we have the Reflexis time and attendance, Reflexis workforce management, and we are in the process right now of rolling in and implementing the new system in the cloud. We have over 5,800 stores, all scheduling is done, including hourly and salary, through the Reflexis system. You'll see on the chart just some of the key highlights where we were with the old system and where we are now. Again, I mentioned 30-minute increments, and now we have the ability to schedule at 15-minute increments. That's incredibly important to us because, and I'll talk later about our labor scheduling model, it's an activity-based model with over 200 activities and time measured activities that go in, in every 15-minute increment. Again highly flexible, great system integration. We have the ability to test and implement modeling changes very quickly, which is very important to AutoZone, and as we talk about where we were in the middle of this COVID-19 crisis, that became even more important as change, as many of you know, was coming at us fairly rapidly. We have great insights to the data; we spend a tremendous amount of time on reporting and data analytics. What we're really looking forward to mostly, and it's the best thing possible for our AutoZoners is the access to a mobile app for employee self-service. So, what do you do in an environment to mitigate the rising cost of payroll? As you all know, we had incredibly high legislative environment with regards to wage, scheduling requirements. It's forced many retailers to think about things differently. It's increasingly important to have a strategy and most importantly, executable tactics with regards to payroll management. That's what our current workforce management system allows us to do. Just take a look at this screen, I'm not going to go through every one of these bullet points, but the compliance environment is changing so rapidly. Currently, 27 states and the District of Columbia have changed their minimum wage laws since 2014. Some of the highlights there, many states have multi-year schedules for minimum wage increases. For example, Massachusetts currently at $12.75. They're scheduled to go to $15 by January of 2023. The state of California is currently on its way to $15 in 2020. They've made in California, they've had a 67% increase in minimum wage since 2015. So, how do you do this? First of all, there are three main components, and there are many more but the main things that allow us to mitigate some of this cost is compliance, of course. Many of you who are in California understand what happens there if you're not in compliance. A lot of very litigious folks out there and wage and hourly is a big target for many of them. So compliance first. Precision, and what do I mean by precision? It's really the ability to forecast and get the right amount of labor at the right store at the right time. Then of course as I mentioned a couple of times, we make model changes fairly regularly, so flexibility is incredibly important to us. With regards to compliance, we've had the full support and ability to comply with all legislative actions, and it's really through our partnership with Reflexis. They keep us informed, they send out a great newsletter, by the way, if you're not getting that. That gives you an idea of what's coming up in the future. So, what happened during COVID-19? At AutoZone, we saw like many of you, over of a period of about six weeks, we saw some incredible change. First of all, we are an essential retailer. We never had to close our doors, but we did have to change the way we operated, and we had to do it many times and we had to do it rather quickly. Again, I go back to flexibility. Reflexis allows us to make quick changes in response to the changing environment. In the first six weeks of the COVID crisis, we changed our hours of operation four different times. Each time, of course, requiring changes to our scheduling. Our forecast model had to change. We saw some great variance in our sales and our results from the beginning of the crisis to things settling down, and then being an essential retailer. We were in a position where we saw pretty massive swings. Also, we had to make store attribute changes. We have operated many 24-hour stores as you know, most municipalities had rules around how long you could be open and when you could be open, and the customer base simply was not interested in getting into the store and hanging out there very long. But we did see that change and it required us again, as I mentioned, to make four different changes to our operating hours across all 5,800 stores in just a six week period of time. So what were some of those successes due to the flexibility? The 15-minute increment is incredibly important for us. Having this activity-based labor model was quite a change for us. We could not have done it with our old scheduling system, and we were able to implement it now. We have two businesses, we run a traditional retail, we call it a DIY business. Then we have a wholesale or commercial business, both with very different requirements with regards to scheduling. A very random nature of customer flow on the retail side, and a fairly consistent nature of customer flow on the commercial side. What's that all mean? Over the last seven years as a result of being able to move to an activity-based model, we've been able to save over $100 million simply by becoming more efficient, making sure that we had the right people at the right time. Most importantly, not more people than we needed. Again, the 15-minute increment is incredibly important for that. Our future plans. We're currently moving from the legacy solution to the latest cloud version. Future roadmaps, and we've gone through all of our user acceptance, we're in pilot, but the new mobile app and employee self-service is something that our AutoZoners are most excited about. It allows the AutoZoners to submit vacation, make schedule changes. The thing that matters to us most, we have a fairly dense store base, and having the ability for AutoZoners to work from one store to the other and look at alternate schedules is incredibly important. Then of course there's absence management. Our third bullet from the bottom, the intraday and midweek re-forecasting, as I said, our sales are fairly consistent but they can change fairly rapidly, based on weather and other extremes. The ability to change the forecast midweek and even intraday, we believe is going to continue to allow us to become more efficient, therefore saving the money. We offer over 600 stores in Mexico, they have been on the legacy system there for, I guess, 20 years now. The reason that we haven't changed in Mexico is it's a very complex, lot of compliance issues. Reflexis has been able to deliver the mail on that in Mexico as well, for those of you that have organizations outside of North America. Then of course, task manager which really was our first time that we did any business with Reflexis was through task manager. I think that that is going to just about wrap it up. I will turn it over to Kevin. Again, I think that we'll have plenty of time for Q&A. I'd love to offer as many insights as I can. Before I do that, you may ask yourself why is this guy executive vice president, talking about workforce management? As I said, it's our largest labor expense. I had the unfortunate opportunity to try to implement a different software and I was early on in my career in this position. I had to go explain to the board why we had to write off several million dollars. We immediately went back to Reflexis, they were able to get us implemented and up and running fairly quickly. So labor is incredibly important to me and what system we use is incredibly important to me. My team is obviously responsible for managing it. Also for forecasting, and I've got a great team. I'm going to give them a shout out to Carly, Erica, Amanda and Elaina. They have a great relationship with the folks at Reflexis. They're on the phone with them probably weekly. I can't say enough about what they do because without them I wouldn't have the opportunity to sit here and talk to you today. So, Kevin? Tapscott: Great, thanks so much, Tom. That was awesome. I got to say, being a car guy and a car guy that's... I'm not a total gear head but I do have an older car that I love and coddle and keep it tip top to the extent that I can. I'm always impressed at how well AutoZone executes. I've lived all over the country and from coast to coast, how well AutoZone executes. So, hats off to you. Newbern: Thank you. Tapscott: You're welcome. Let's review the results of the poll that we did right before Tom's section. The question was, was software solutions do you feel are most important to improving store operations? The results show that advanced labor scheduling leads the pack way ahead. Followed by time and attendance, task management, service options, and then site auditing and compliance. So advanced labor scheduling as you might imagine given the subject of today's webinar, is leading the pack. So we appreciate everybody's responses and answers. Thank you so much. So, let's move on. Tom and I are going to have a conversation about a couple things revolved around going the extra mile for the customer. This email that is up on the screen, shared by a customer to AutoZone as the Extra Mile Story is solid gold for a retailer. Tom's corporate and field teams work hard in planning and training, but at the end of the day it's executing on that brand promise on the front lines that keeps your existing customers happy and grows your customer base by word of mouth. Word of mouth with stories like this. So in a minute, we're going to talk about safety. We're also going to talk about how Reflexis can help retailers retain employees, but before we go there I want to talk about what it takes to have a customer send an email like this. So this story from a customer is an example of AutoZone as a high touch, small box retailer, and the importance of having the right AutoZoner in the right place at the right time. I wondered Tom, if you could talk a little bit about how the Reflexis solution... and I know you've talked about this briefly, but maybe add some more color around how the Reflexis solution helps AutoZone ensure that the right AutoZoner at the right place at the right time, becomes reality in-store? Newbern: Sure, and of course, there are a lot of reasons. There's a lot of rust, a lot that you have to go through to get to the answer but primarily, it really comes down to the ability to schedule activity in 15-minute increments. If you can forecast, not just schedule first and foremost, you have to forecast 200 different activities into a 15-minute increment. That really ensures that we've got the right AutoZoner at the right place at the right time. As I said, there are many other things that go into that but it starts there. Again, it's just a great forecasting engine for those of you who have tried it. For those of you who have it. I'm giving another shout out to our team, they forecasted over $10 billion in sales several years back and they were able to forecast within $1 million, three months ahead. So over a 15-month window, and they were within a $1 million. So forecasting works great as well. Tapscott: Awesome, thanks for that, Tom. Well, I mentioned we would be talking about safety for both customers and AutoZoners. So let's do that for a minute. It's obviously a critical part of retailing in the current environment, safety is. AutoZone was designated as an essential retailer. So you were open, Tom, throughout the entire pandemic. Retailers including AutoZone, have worked hard throughout the pandemic to provide outstanding service, in many cases with new services, while being mindful to keep employees, AutoZoners, and customers safe. So from adding new services like curbside pickup to changing the store hours which you talked about, I think you said at least four times, doing so to better protect your employees and customers. Clearly making those changes quickly and accurately is critical. Could you speak a little bit about how Reflexis workforce helped schedule or helped you with these new processes and circumstances to keep AutoZoners and customers safe? Newbern: Sure, and again Kevin, it goes back to our labor model itself. The activities that changed, and any activity that changed as a result of COVID was fairly significant. Going in, we did not have a curbside pickup, for example. Nothing like you would see at a Kroger. Customers would walk in the door, go to the counter and be waited on. Significantly more time required for a customer to call and give the same information and then delivery the product to this customer at the curb and take their money or credit or cash, either way. So that changed the amount of time that was required with the customer interaction. The team was able to put together essentially using our buy online, pick up at store, and integrate that into a curbside effort. With Reflexis, we were able to change that activity in the amount of time required, and introduce that within a week. So again, speed and flexibility. Tapscott: I would imagine given the circumstances, you have your eye on upcoming, perhaps, changes or new activities to further improve your customer service and keeping your employees safe? Newbern: Absolutely. Our team goes through and does time studies on each of those activities or new activities, as we introduce new processes to the stores. They do that several times a year and then update the model with the new times. Tapscott: Excellent, that's how you do it. That's how you get letters like we just saw. Let's move onto the next topic here and just spend a second on labor scheduling and AutoZoner retention. Retailers schedule their employees a number of different ways, from pen and paper to Excel spreadsheets, to Reflexis. So I would be interested for those that aren't using Reflexis to hear what aspects of the AutoZone labor processes help you keep your AutoZoners happy? What role do we play or does Reflexis play in that? Newbern: Again, I think that there's several pieces of that and several pieces to the answer, Kevin. First and foremost is, people, they want to know when they're going to work. We have our schedules, our forecast goes down on a Monday, the schedules hit the store on Tuesday. About 89% of our schedules are completed by Thursday. So AutoZoners know when they're going to work next week, and that's incredibly important, if you've worked retail, not knowing when you're going to work on Monday until Sunday doesn't allow for much quality of life or family planning, for example. The other thing is that we have the flexibility now to do predicted scheduling. We were forced to do it in several states. Oregon, Washington, I think Chicago, New York, now requires schedules to be out two weeks in advance. That makes it much more difficult to be accurate on your forecasts. So again, we're very pleased with where we are and the forecast engine we've got embedded in workforce management. We're able to get the schedules out and still have a reliable accuracy on what we think our sales are going to do, therefore, activity needs to be for two weeks out. I think that's going to go a long way to keeping retail AutoZoners happy. Tapscott: Very good. One just follow-up question, you mentioned earlier in the future plans about a new mobile UI for ESS. I wondered if you... our existing customers, and there's millions of employees using ESS today but they use it to advertise a shift they'd like for somebody else to pick up or they use it to swap a shift. They might use it to view their schedule or perhaps, understand if they're needed in another store. We have a lot of customers who are now sharing employees across store. They can even clock in and clock out with geo-fencing on their own device, which eliminates the amount of touching and so forth. The circumstances that we're in, that's important. I wondered if you might comment on some of the... listing all those aspects, if you might comment on some of the things that AutoZone might consider going forward, in terms of the ESS functions, those that might be most important to AutoZone. Newbern: We think that the biggest opportunity is going to be in shift sharing or working an alternate work location. As I said 6,000 stores, our store density is fairly dense, particularly in the larger cities. So the ability to share AutoZoners between neighbor stores, make sure that everybody sees what shifts would be available in a store down the street. We think it's going to help us eliminate a lot of overtime and hopefully we'll also find additional efficiencies. I suspect that it'll change the requirements that you have for part-time workers as well. In other words, I can have a full-timer that works multiple stores, as opposed to having to force a part-timer in Tapscott: Yeah, we see that as well. That's a major lever for retailers and multi-site businesses that have, as you said, the density within market to allow for sharing. If a store has an open shift that needs to be filled and an employee wants to work more hours and earn more money, you need software to match those two things up, and we do that well. So that's great, that's great to hear about. Thanks for that, Tom. Super, email, love just having been a former retailer, I love getting information like that from our customer and I appreciate your insights throughout this discussion. Denman: Hey guys, great presentation. Really enjoyed it, we got a lot of great questions here. If anyone in the audience has any questions, we encourage you to send them in, but we'll get to as many as we can. The first one here, Tom, I think this one would be for you. How did the managers and AutoZoners handle the implementation and the philosophy change of the new scheduling system? Newbern: So far so good. Anytime you have change, you expect there would be a certain percentage of the population that just won't like the fact that their chaise has been moved, but the UI is so intuitive that we were very, I don't want to say surprised, but we were very pleased that through all our user testing that everybody, which didn't make many changes. Didn't request many changes, and it's been fairly intuitive and fairly easy for the majority of the folks that are using it right now. Denman: Oh, good to hear. This next question, it looks like it's probably a fit for Kevin. One of the poll answer choices was service options such as customer appointment scheduling. Does Reflexis have these capacities, and if they do, can you tell us a little bit more about it? Tapscott: Sure, I'd love to, Tim. We sure do, it's called Reflexis Appointment. It provides a number of services for our customer to, in the face of what everybody's working with in a pandemic, to be able to provide those services that customers now expect if they're going to shop there. So they can take their phone or go to their computer and make an appointment for an in-store session, and there's flexibility around that so it's configurable. They can select a certain individual, they can select certain services that are required for their visit. It could just be a shopping session or it could be a specific appointment for a specific service. All of that is again, handled both on mobile and desktop which is important. Most many of us are thinking as we're going throughout the day and want easy mobile access, and we provide that. The solution also allows for the curbside pickup capabilities that we've talked about today so that when a customer makes a purchase and expects to be able to pick it up, they can through their device communicate with the retailer. The retailer knows when the customer is onsite and streamlines that transactions, meeting a high level of expectation that's out there for the customer. So those transactions need to be in place and they need to be seamless, easy, and efficient. We feel like this application does a great job across a number of services in providing that efficiency. Denman: Thanks for that, Kevin. Tom, have you seen any impact in terms of reduced store manager time on the scheduling process before and after deploying the Reflexis solution? Newbern: Yes, and I would say probably cut in half the amount of time the managers were spending on the schedule prior to getting Reflexis workforce management solution. Easily cut in half. Denman: Great. Tom, we have a really nice question here and it's actually from a... he describes himself as a former AutoZoner. Knowing that you and the DNA of AutoZone, no surprise here that you are on this call. AutoZone has best-in-class employee training. How much of a factor is your training infrastructure in the $100 million in payroll savings you have been able to realize? Could you share any insight on the impact on the revenue side of the equation as a result of the implementation of this solution? It's a lot there. Newbern: Yeah, I think I can't give you a specific number on what we think it meant to revenue. Again, you're a former AutoZoner, you certainly understand the importance of having the right person at the right time. We certainly do that much better today than we did 10 years ago. So I don't have a specific number but I am confident that it certainly has led to that. As far as employee training goes, we do have a great deal of employee training. We think we provide our AutoZoners what they need to provide the service that our customers expect. Again, having the schedule right allows for those folks to go through the training. So it's integrated. Denman: Perfect. Kevin, we have a couple questions here I'm going to combine about the actual solution. One is about the shift swap, which I believe you spoke to. They're asking if you have it. I believe you spoke to that. Then someone wants to know, what exactly do you mean by task manager? Tapscott: Sure, I'll be happy to answer both of those. So shift swap which is a common occurrence for our customers that leverage employee self-service, is essential to our capability. It's also configurable. It allows employees to swap with either any other available and qualified employee or they could go to a specific employee and if that specific employee was qualified for the shift. So it's looking at, are they going to go into overtime? Do they have the right skillset? All of those types of factors are validated by the system before that swap can take place. But it's a great feature, it's something that employees can do from the convenience of the mobile device of their own or a store device, they can do it from their laptop computer. Having that flexibility to either advertise a shift because you want some free time, or swap a shift with someone else, all of those things are huge for our customers and employees. They can be truly an employer of choice by having those types of tools available to their employees. The other question, what is task management? Good question, it's what we are and have done for a long, long time. Many retailers, multi-site retailers follow a continuum of using email for communications and execution communications until they can't do it anymore, it's so hard. A very small store count, believe it or not, it's so hard to manage your communications through email. Manage your execution through email, you don't have visibility into who has done what. You're having to blast out blanket emails instead of targeting information to specific roles or specific locations. The bottom line is, it makes execution really hard. Task management replaces that, those types of communication tools. Provides intelligent workflows for the creators of those communications. By intelligent, I mean they may, depending on type, need to go to a reviewer or an approver within the corporate office before going down to perhaps a district or regional manager. Perhaps they need to go straight to the store, but what the store gets is all in one place, they know it's for them. It's pushed, it's prioritized, and it's easy to consume. On the other end you know who has opened it, who has read it, and who has done it. At the end of the say we see increases in execution self-measured by our customers from the mid-60s the mid- to high 90s, as a result of task management. So hopefully, those details help answer the question. Of course, we'd love to talk to you further if we can go from there. Denman: Thanks, Kevin. Tom, this next one's for you: With your customer experience, how are you differentiating your experience compared to your competitors? Newbern: While I'd love to give Reflexis a lot of credit for that, we have an incredibly strong culture of service and commitment to our customers at AutoZone, but I will go back to, it's 70% of the people that walk through our doors are expecting assistance. It's not like they're out there with self-service. So making sure that we have the right AutoZoner with the right skillset on the counter waiting for the customer to come in is incredibly important. I would say that's the answer to the question. Denman: We got a real specific question here about billing. When you share talent from one location to another location, does it get auto billed to the other location? Tapscott: I can take that, Tim. Then if Tom wants to chime in. It could be the solution's designed to be flexible in that way. So if you're scheduled to work in a different location, it could automatically be those hours and that cost could automatically be applied to that other location, or you can configure it to always charge to the home location. Denman: I think this is a question for Tom but Kevin, you can chime in on this next one: In terms of getting the "right employee at the right time," are you saying that you characterize employees on their individual strengths? Are there any examples you can give of how you did that? Newbern: Yes, we do characterize employees on their individual strengths. It's really about experience and parts knowledge. Again, it's incredibly important for us to have AutoZoners on the counter that have the appropriate amount of parts knowledge. Yes, they're schedule based on that. Denman: Great, and another one for you: Is there anything that you learned once the solution was live in stores that you wish you knew during the implementation? Any advice to keep in mind during the implementation phase? Newbern: Geez, now you're trying to get me to answer a question that I'm not an expert. I would have to defer it to those great folks back in Memphis that are working on that. I really couldn't answer the question, I apologize. But believe me, what I do know is, I've got 80,000 people that work in my organization, if they weren't happy I would've known about it but I would have to defer to Carly and Amanda and that team. Denman: Kevin, question here that I think you could handle. We have two channels of business that utilize our retail stores. Phone sales and the web, as pickup in store. Does Reflexis help us scheduling those other channels of business, along with walk-in customers? Tapscott: That's a great question. So the application is designed to be able to forecast the data that's important to the retailer. That does mean data that goes beyond just historical store sales. So other channels can be forecasted, activities as Tom mentioned in his presentation, it's an activity-based model. So those activities, whether it's customer facing or picking and packing, those activities can be forecasted and schedule along with skills and capabilities, as we just talked about. So absolutely, we do it. We service a number of customers that have complex businesses and require that type of capability. Denman: Got you. Tom, how does AutoZone deal when multiple employees are asking for the same day off? Football rivalry weekend, as an example, and if no one wants to swap, excuse me, and they simply call out. We are dealing with people here. What does AutoZone do in those situations when there's a lot of demand for certain days off? Newbern: Run overtime. Unfortunately, we're not immune to that. We have our share of absenteeism. We actually think that the shift sharing is going to help with that because there's always going to be people that want to pick up more hours. So again, that's something we believe will be an efficiency we find in the future. Denman: We are getting close to the end of our time but we do have the time for a few more questions here. This one is certainly timely. Tom, what are your thoughts on the announcement of the Zebra acquisition of Reflexis? I understand you currently have invested in the Zebra mobile computing solutions. Do you see value it the two companies joining forces, allowing for a more robust collaborative workflow automation experience? Newbern: That's a great question. I guess first and foremost, congratulations to Prashanth and the Reflexis team. I think that is going to be a good relationship from a retail's perspective. We do have those devices in our stores. I think that if you're a retailer using the Zebra software or Zebra devices and you have task management, most of our tasks are done through that device. I've got to believe that there'll be some synergies there that will help us become more efficient. Denman: Kevin, do you have anything to share about the acquisition? Tapscott: Well, we're excited. There's not a whole lot I can say about it until it's all signed and dotted, but we're super excited about it. We think, as Tom alluded to, that there is a lot of low hanging fruit from a synergy standpoint and it's just a really smart, strategic move. We're really excited about it. Denman: Great, thanks. We are out of time, I believe we got to all of the questions. I want to thank Tom and Kevin for taking some time, and I want to thank Reflexis for sponsoring the webinar.