True Value invests in its supply chain
The US wholesaler True Value is putting massive investment into its
supply chain, with a sum of USD 150 mio being quoted in a report by the
industry information service CSA. Its aim is to serve the different
business models of associated independent retailers better and, in
particular, to improve their competitiveness in e-commerce.
Part of the new strategy is a so-called hub and spoke distribution
model, under which all inventory SKUs are stored at regional
distribution centres; stores only carry the fastest-moving articles.
True Value has introduced demand planning and fulfilment technology from
JDA Software in connection with this.
For the first time in 30 years the company is also building a new
regional distribution centre in Pennsylvania. The logistics facility,
which is around 140 000 m2 in size and will service 1 000 stores in the
north-east region, is scheduled to be commissioned in the autumn. The
company currently operates 13 distribution centres.
What is behind the investment is last year’s changeover by True Value,
after more than 70 years as a cooperative, to a privately held company.
In the last year 300 more stores have joined the network, which includes
over 4 500 stores in the USA and other countries.