Longs Announces Plans for a DC
Thursday, July 7 2005
Published on AllBusiness.com
WALNUT CREEK, CA — Longs Drug Stores Corporation announced its plans to build a new 800,000 sq. ft. distribution facility in Patterson, CA. The new distribution facility will support the company's previously stated goal to increase its self-distribution of front-end merchandise to approximately 80% from approximately 40% by 2007.
The company plans to invest approximately $50 to $55 million in the new distribution facility, which should be operational by the Fall of 2006. Patterson was selected based upon the optimal interstate access it provides for routing direct deliveries to Longs stores and its close proximity to an existing facility in Lathrop, California.
"We have made considerable progress in reducing our cost of goods and improving our inventory management in the last several years by centralizing our merchandising and improving our supply chain," said Warren F. Bryant, chairman, president and ceo. "Strengthening our direct links with consumer product manufacturers and distributors should contribute to the continued progress we plan to make on improving our profitability long term.
"We evaluated the economic impact of a number of alternatives and believe that building a larger facility designed for self-distribution from the ground up will be more cost effective and better aligned with our goals," Bryant said.
Once completed, the Patterson facility will eventually integrate the distribution of front-end merchandise currently distributed by Longs' 427,000 sq. ft. owned distribution facility located in Lathrop, California. Longs will continue to distribute front-end merchandise through its distribution facilities in Ontario, California and Honolulu, Hawaii. In addition, the distribution of pharmacy goods will not be affected by this change.
Longs Drug Stores Corporation operates 473 stores located in California, Hawaii, Washington, Nevada, Colorado and Oregon.
The company plans to invest approximately $50 to $55 million in the new distribution facility, which should be operational by the Fall of 2006. Patterson was selected based upon the optimal interstate access it provides for routing direct deliveries to Longs stores and its close proximity to an existing facility in Lathrop, California.
"We have made considerable progress in reducing our cost of goods and improving our inventory management in the last several years by centralizing our merchandising and improving our supply chain," said Warren F. Bryant, chairman, president and ceo. "Strengthening our direct links with consumer product manufacturers and distributors should contribute to the continued progress we plan to make on improving our profitability long term.
"We evaluated the economic impact of a number of alternatives and believe that building a larger facility designed for self-distribution from the ground up will be more cost effective and better aligned with our goals," Bryant said.
Once completed, the Patterson facility will eventually integrate the distribution of front-end merchandise currently distributed by Longs' 427,000 sq. ft. owned distribution facility located in Lathrop, California. Longs will continue to distribute front-end merchandise through its distribution facilities in Ontario, California and Honolulu, Hawaii. In addition, the distribution of pharmacy goods will not be affected by this change.
Longs Drug Stores Corporation operates 473 stores located in California, Hawaii, Washington, Nevada, Colorado and Oregon.
