Daisytek To Break Ground On New Regional Distribution Centers

The expansion includes new distribution centers in Albany, N.Y., and Bakersfield, Calif., and a reconfiguration of Daisytek's existing Memphis, Tenn., warehouse. The three centers should begin processing orders from the company's first full-line computer and office products catalog on Jan. 2, 2003, said Jim Powell, president and CEO of the $2 billion Allen-based distributor.

The system will allow Daisytek to use more cost-effective ground transportation and other shipping options by FedEx and UPS, according to the company.

The new centers have shipped hundreds of orders already, but they won't be fully utilized until the office products catalog launches next month. The Albany and Bakersfield facilities are 325,000 and 350,000 square feet, respectively, and the existing Memphis warehouse is 400,000 square feet.

A new warehouse management system in Memphis is currently running parallel to an existing system. More than 6,500 SKUs have been moved into the new environment, and about 300 per day will be transferred until the end of December.

"Daisytek has very loyal customers in the supplies and media area, but having one warehouse in Memphis doesn't really cut it," said Bicky Singh, CEO of Future Computing Solutions, a Yorba Linda, Calif.-based solution provider. "Other distributors have started going aggressively into the area where Daisytek plays. They have huge warehouses on the West and East coasts."

The regional system should improve the cutoff times to place orders for next-day delivery, Singh said. "Now the West Coast [warehouse can be open to 8 p.m. [EST. That's a great advantage for East Coast resellers," he said.

In addition, the new warehouse system uses radio frequency devices to help improve order accuracy and efficiency, and computer supplies and traditional office products can be stocked side-by-side in one warehouse, allowing Daisytek to better serve solution providers ordering both types of products.

Traditionally, Daisytek offered next-business-day service by air. Now the company can offer ground delivery, which will lower costs to solution providers, according to the company. The new system also allows the distributor to carry traditional office products that were previously cost-prohibitive to ship from Memphis because of the "heavy weight/low value" nature of the products, executives said.