Daisytek Unveils Lower-Cost Distribution Plan

Daisytek International

The computer supplies and office products distributor has signed leases for two new distribution centers in Tejon Ranch, Calif., and Albany, N.Y., slated to become operational by June and September, respectively, said Jim Powell, Daisytek CEO.

The company announced the new leases as part of an overall distribution network expansion plan that will put orders in customers' hands more quickly and cost-effectively, he said.

Daisytek currently operates a hub-and-spoke distribution model, and the new regional distribution centers will complement operations at the company's distribution superhub in Memphis, Tenn., Powell said.

Daisytek is in negotiations to add three new distribution centers--in Chicago, Dallas-Forth Worth and Florida--before the end of the year, he said.

After maintaining a centralized distribution operation for the past decade, Daisytek is moving to regionalize operations to take advantage of ground freight advancements made by Federal Express, Powell said. Once the California and New York facilities are online, Daisytek will be able to reach 60 percent of the United States with next-day ground freight deliveries for a considerable cost savings, he noted. The distributor previously used air freight.

The new distribution model also supports Daisytek's expansion into the office products market, enabling the distributor to deliver a larger product line more efficiently, Powell said. "Our supply chain initiatives are proceeding ahead of schedule and are on track to yield the expected savings," he said.