Burnsville, Minnesota-based Johnson Plastics Plus, a distributor of rotary and laser engraving materials and supplies, announces upcoming changes to increase delivery speeds and reduce shipments from multiple warehouses. The company plans to create four new distribution centers, each warehousing a full assortment of products.
“Our current distribution footprint was created over time through growth, both organically and from acquisitions,” says Jim Ellward, Johnson Plastics Plus CEO. “As a result, we had multiple locations that didn’t stock a full assortment of our products.”
To determine how to improve operational efficiencies, the company launched an extensive study of the current customer experience and distribution footprint model. According to Ellward, the objective was consistent throughout the entire process: Strive for the best customer experience possible while taking care of employees and improving overall operations.
As a result of the study, the company decided on four strategically located distribution centers in Burnsville, Minnesota; Carrollton, Texas; Reno, Nevada; and Findlay, Ohio. The new locations provide Johnson Plastics Plus room to expand its current product offerings. According to the company, these specific locations were chosen as more than 98% of customers are within a one- to two-day shipping window from these distribution points.
“We’ve listened to our customers, and this expansion will provide a significant reduction in split shipments while increasing delivery speeds,” Ellward states. “We’ll have more products available and we’ll be able to get those products to our customers faster.”
Warehouse consolidation efforts have begun and will take place over the next several months. The distribution centers will be completed by the spring of 2020. Firm dates will become available as the distribution center expansions progress.
The company ensures that steps will be taken so there is no disruption to the inventory available or to their delivery service. “We’re committed to transitioning in a manner that will provide us the greatest flexibility to meet our customers’ needs and eliminate unnecessary impacts to the business,” Ellward says.