OKLAHOMA CITY -- Fleming Cos. here is expanding the primary distribution center in its Dallas general merchandise division while closing two secondary distribution centers within the division.
The $5.6 million expansion project, set to be completed early in 1996, involves the addition of 92,000 square feet to the existing 245,000-square-foot facility in Dallas. Plans call for a number of logistical changes, as well as docking and product handling improvements, the company said.
"The new facility will allow us to expand some product lines, increase our productivity [and] eliminate duplicate handling of product, which means it allows us to be more efficient and control our costs on product to the retailers," said Nancy Del Regno, corporate vice president of communications.
Two Texas distribution centers -- one in Dallas, the other in Fort Worth -- will be vacated as soon as the renovation is completed.
Used only for product overage during peak selling periods, the Fort Worth location will be sold. The other location, situated about a mile south of the primary Dallas site, is leased.
Fleming intends to incorporate a number of improvements in the remodeled Dallas warehouse, such as:
· Tripling the number of shipping docks. The exact number of docks currently in the facility was not available.
· Reconfiguring the facility's layout. "In the new facility, we will receive product at one end and ship from the other end and that helps with the flow of product," Del Regno said.
· Installing an automated sortation system. "Right now, our system allows us to direct boxes to eight different lanes for staging to load into trailers. We will have three times that with the new system," she said.
Down the road, Fleming is considering sourcing specialty food lines from the Dallas warehouse. Currently, a limited supply of dietary products is available at Fleming's Dallas operation; other specialty foods such as ethnic and gourmet items are shipped from different company warehouses.
