True Value shakes up the supply chain
In the coming months, True Value is implementing changes across its distribution center network to better serve its independent retailers, according to the company.
True Value’s Wilkes-Barre, Pa., regional distribution center was built with the vision of being True Value’s Northeast distribution hub. Now, as a result, True Value is prepared to collapse its Northeast hub-and-spoke model, which entails ceasing operations at its Manchester, N.H., regional distribution center by the end of 2024.
Additionally, True Value is augmenting the mission and operation of its Denver regional distribution center. By November 1, 2024, the Denver center will no longer service retailers, and it will transition to “storing network inventory and facilitating inter-company transfers,” per the company.
The facility will remain open with a “streamlined staff” to support the center’s new activities and functionality. Retailers currently served by the Denver RDC will be serviced by one of four chosen distribution centers, based on what works best for that individual store.
Benefit analysis
True Value says its supply chain moves will result in:
- Deeper inventory and improved availability;
- Increased access to MVP items;
- Optimized delivery routes;
- Reduction in operational complexities in the hub and spoke networks; and
- Alignment with a competitive distribution footprint across the industry.
According to the company, True Value’s entire network is poised to benefit from these moves, as “inventory is balanced and as routes continue to be optimized.” While there will be minor changes to order and delivery days in specific geographies.
“These announcements represent years of continuous improvement, listening to your feedback and making changes to keep building a strong future for True Value’s success,” the company said in a statement.
Insight behind the supply chain shakeup
Jennifer McNeill, True Value’s senior vice president of supply chain operations, provided more context and insight regarding the moves.
Q: How will these moves improve efficiency or make things better for stores?
McNeill: Simplification is needed. These changes across the network – in Manchester and Denver – are about reducing complexity for our retailers and our supplier partners. The Wilkes-Barre distribution center will fulfill its intended purpose as the regional hub, which means optimized routes, deeper inventory and deeper product availability for our retailers. The transition to this facility enables the best customer experience through streamlined ordering and optimized inventory levels. Our retailers have provided detailed and relevant feedback on this topic.
Q: How many jobs will be impacted by these moves in Denver and Manchester?
McNeill: True Value is evaluating and offering relocation to team members where it makes sense. These changes will result in adding employees in four other distribution centers. While we can’t provide exact numbers at this time, as our teams are continuing to work through transition plans, we are committed to providing a smooth transition for impacted associates, including retention efforts, severance packages and job placement support services.
Q: What series of supply chain events led to these decisions, and what have been some of the toughest logistics challenges in recent times?
McNeill: We remain focused on improving our retailers’ experience every day while partnering with our vendor community to simplify daily interactions. The challenges in the global supply chain over the past few years have amplified our focus on optimal inventory levels and optimal customer delivery routes. Macroeconomic challenges and geopolitical risks will continue. By transforming the True Value supply chain, participating in the FLOW data sharing portal to monitor global supply chain capacity, and being an easy partner to do business with in our vendor community, we continue to do the things that support our retailers’ continued success in their communities.
