Minneapolis-based retail group Supervalu has announced that it is to consolidate its distribution centres in the eastern US.
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The company said it plans to merge its three units in Easton, Pennsylvania, Harrisburg, Pennsylvania, and Perryman, Maryland, into its facility in Lancaster, Pennsylvania.
The company also said that it had identified the Lancaster site as the newest location for automated technology. By consolidating warehouse volume and incorporating automation technology into the 1.4m square foot warehouse, Supervalu said it would be positioned “to optimise its distribution network and leverage technology for improved efficiencies”.
“Our overall vision is to deliver the best supply chain services to our corporate and independent retailers. This project enhances our commitment toward that vision. Leveraging the efficiencies of the combined company is one of the inherent benefits of our expanded network,” said Janel Haugarth, president and chief operating officer of the company’s Supply Chain Services group.
As a result of this consolidation, the company expects to incur total after-tax charges over three years in the range of US$30m to $35m. Supervalu expects the project will take around three years to complete.
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By GlobalData
