Dive Brief:
- Dollar Tree is preparing to launch streamlined delivery for stores serviced by its distribution center in Matthews, North Carolina, according to a Q3 earnings call.
- Starting this month, the retailer will begin using rotacarts and liftgate trailers at the North Carolina distribution center, CEO Rick Dreiling told analysts.
- Dollar Tree, which has been testing its rotacarts for some time, remains “on schedule for all of our distribution centers to be using rotacarts by the end of 2027,” the CEO added.
Dive Insight:
Dollar Tree’s beta tests of rotacarts are part of the company’s broader initiative to optimize its supply chain.
“Our supply chain initiatives include enhancing our distribution and transportation network, including investments in our trucking fleet, transportation management systems, a new co-bannered distribution center to improve efficiency, and a new rotacart delivery process to streamline the truck unloading and store delivery process,” the company said in its third quarter 10-Q.
Dollar Tree also implemented a new supply chain finance program during Q3, which is managed by a third-party financial institution, Dreiling said.
“Participation in this program is voluntary for our suppliers and provides them with additional flexibility to finance payments due from Dollar Tree,” the CEO explained.
In addition, earlier this year, Dollar Tree also implemented temperature controls at four distribution centers to help reduce cross-stocking expenses and increase flexibility when it comes to storing products. Having temperature control allows Dollar Tree to directly ship over-the-counter products to stores. The retailer expects to upgrade eight facilities by the end of the year, and complete the full rollout by the end of 2024.
Other retailers like Dollar Tree are also making supply chain upgrades to improve operating performance and store delivery processes. Beverage maker Southern Glazer’s Wine and Spirits and Walmart are similarly investing in distribution center technology to achieve those goals.
