Ace Hardware 2015 Annual Report Download - page 9

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When people think of Ace,
the first thing they think of
is “helpful.” That helpful ideal extends to the
support we give our retailers. In order to be
the most helpful wholesaler, it’s crucial that
we have the most responsive supply chain
to meet retailer requirements.
Our Retail Support Centers have grown at
an incredible rate over the years as we’ve
experienced higher and higher volumes. This
phenomenal growth has led us to constantly
evaluate our RSCs, with an emphasis on how
to best utilize their capacity and technology.
In 2015, we enhanced our network planning
and design tools, which will help us determine
the best places to expand current facilities and
build new facilities in the future. We’ll also be
able to use these tools to pinpoint and prevent
capacity issues, maximize existing space and
improve inventory turnover.
Impressive new facilities,
cutting-edge technology,
and highly effective programs
helped deliver phenomenal
growth in 2015.
Ace opened two new RSCs in late 2014 and
by early 2015, they were both fully operational.
The new Wilmer, Texas, facility is now thriving
in its role as an additional link in our supply
chain. The new West Jefferson, Ohio, RSC
covers territory previously served by our
Toledo RSC, allowing us to reduce our costs
while delivering higher, more efficient levels of
service. In addition, we broke ground on the
expansion of our RSC in Wilton, N.Y., that will
take the square footage from 800,000 to 1.2
million when it’s complete.
Inside our RSCs, we implemented a hybrid
picking system that brought together the
best aspects of voice picking technology and
scanning product UPCs. This combination of
technology provides fast fulfillment of orders
while maintaining high-quality delivery to
retail. At the same time, we also introduced
a new behavior-based program to heighten
awareness of safe workplace practices and
help ensure employees get home safely at
the end of each day.
Impressive new facilities, cutting-edge
technology, and highly effective programs
helped deliver phenomenal growth in 2015.
For 2016 and beyond, we’ll be putting these
assets to work with a continued focus on
proven core processes to drive supply chain
performance to even greater heights.
RETAIL SUPPORT CENTERS
BOOST GROWTH BY
MAXIMIZING EFFICIENCY
7
SUPPLY CHAIN STORY