True Value invests in its supply chain

The US wholesaler True Value is putting massive investment into itssupply chain, with a sum of USD 150 mio being quoted in a report by theindustry information service CSA. Its aim is to serve the differentbusiness models of associated independent retailers better and, inparticular, to improve their competitiveness in e-commerce.Part of the new strategy is a so-called hub and spoke distributionmodel, under which all inventory SKUs are stored at regionaldistribution centres; stores only carry the fastest-moving articles.True Value has introduced demand planning and fulfilment technology fromJDA Software in connection with this.For the first time in 30 years the company is also building a newregional distribution centre in Pennsylvania. The logistics facility,which is around 140 000 m2 in size and will service 1 000 stores in thenorth-east region, is scheduled to be commissioned in the autumn. Thecompany currently operates 13 distribution centres.What is behind the investment is last year's changeover by True Value,after more than 70 years as a cooperative, to a privately held company.In the last year 300 more stores have joined the network, which includesover 4 500 stores in the USA and other countries.