An Ace Retail Support Center (RSC) in Prescott, Arizona.
What challenges and positives do you expect along the way as you implement these investments?
Bossmann: “Opening new RSCs and implementing technology and automation always come with some risk. We plan these projects to the most minuscular detail and have contingency plans for each of these initiatives.
“We recognize the magnitude of the change, train employees extensively, and even move volume, where possible, to give employees and management sufficient time to learn new technologies and processes.”
Will the amount of investment be split across the three segments evenly, or do you expect more in, say, RSCs? How does that get shaped and decided?
Bossmann: “The majority of Ace’s supply chain investment will be in new RSCs and the automation to run these RSCs.
“We plan capacity in five-year increments, identify where our space constraints may be, and review our investment requirements with executive management and the board of directors on an annual basis.”
Can you pass along any tips to readers who are maybe deciding to plan supply chain investments?
Bossmann: “First, any supply chain investment requires a deep understanding of the business and where growth is projected to materialize.
“Second, capital investments should be made for long term, sustainable growth. Any short term or seasonal growth should be matched with short term strategies and investments.
“Third, technology investments are an enabler and not the sole driver of quality, safety or productivity improvements. It takes strong leadership and change management to implement new technologies and to gain the benefits that are promised when a technology decision is being made.”
Anything else you'd like to add about Ace supply chain investments in the coming five years?
Bossmann: “Ace will invest over $800 million in the next five years to make sure we can serve our retailers and consumers with higher fill rates, more deliveries and improved accuracy. These investments are key to our digital strategy and our ability to compete and deliver on changing consumer expectations.”