Dollar Tree Logistics
17 Pages Posted: 21 Oct 2008
This case explores the decision of a fast-growing company to expand its distribution network. Financial information is provided in it so students can understand the basic distribution network design covering inbound transportation, outbound transportation, distribution-center operations, and inventory.
Rev. Feb. 18, 2013
DOLLAR TREE LOGISTICS
On a chilly morning in January 2005, Stephen White, chief logistics officer of Dollar Tree Stores, Incorporated (Dollar Tree), sat in his unpretentious office, which was decorated with framed pictures of Dollar Tree distribution centers (DCs) on the walls. White reflected upon the past year's logistics performance for the Chesapeake, Virginia-based discount-retail company. It was easy but mind-bending to calculate the total throughput of DCs that priced everything at exactly one dollar. With $ 3.2 billion in revenue, the year 2004 had been a busy one for the company. Furthermore, in 2004, Dollar Tree logistics had opened two new distribution centers: a 660 thousand square foot, manual facility in Ridgewood, Washington, and a fully automated operation with 1.2 million square feet in Joliet, Illinois.
White looked at the logistics Mission Statement also hanging on his office wall that said, “Logistics is committed to provide exceptional service to our stores through continual improvements in operating costs, quality, and safety. By providing solid leadership, superior execution of processes, acting with integrity, and demonstrating teamwork in all that we do, our mission will be accomplished through our most valued asset, our associate.” Then he pondered the new challenges that 2005 would present to the logistics system that he and his colleagues had designed, and how his team would continue fulfilling their mission.
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Keywords: Logistics strategy, distribution network, retail strategy, supply chain management
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Dollar Tree Logistics
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