That was me posting about DC consolidation programs. I have experienced many and they are difficult to manage. Adairs had a few problems early on and to alleviate the impact they left open one of the smaller DC’s to ensure sales orders were processed and delivered to customers.
From the good sales numbers it seems the decision to leave the smaller DC open was very smart. The even better news is that I understand the new DC is now operating to its expected metrics. So I would anticipate when they close the smaller DC that those cost savings will flow back into EBIT.
Cheers……D
ADH Price at posting:
$3.81 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)