Circle K in third-party logistics agreement for Midwest distribution
Circle K is enhancing supply chain support for 1,600 stores in the Midwest.
The convenience retailer, a subsidiary of Alimentation Couche-Tard, is following through with plans to contract out all warehouse and distribution operations at three new distribution centers in the Midwest.
[READ MORE: Circle K to open three Midwest distribution centers]
Circle K is entering a new third-party logistics (3PL) partnership with distributor McLane Company Inc. Through this collaboration, McLane will operate three dedicated distribution centers to support Circle K’s merchandise supply chain operations such as inventory management, while working to increase on-time deliveries and network agility.
“This partnership with McLane allows us to streamline our supply chain operations and improve overall service to our stores,” said Trey Powell, senior vice president of global merchandising for Circle K. “By tapping into McLane’s extensive logistics network and expertise, we’re enhancing our ability to serve our customers with the right products at the right time, in the most efficient way possible.”
The approximately 266,000-sq.-ft. distribution centers are located in Otsego, Minn.; Lockbourne, Ohio; and Hazelwood, Mo. and will supply approximately 1,600 Circle K and Holiday stores in 14 states with national and private brand packaged snacks, candy, beverages and other convenience items.
Circle K says the new distribution centers are opening as part of a strategic effort to optimize its merchandise supply chain. With the addition of these three facilities, Circle K has five 3PL distribution centers supplying more than 2,600 company-owned stores in the U.S.
The company’s other U.S. 3PL facilities are in the San Antonio and Phoenix areas and supply stores in parts of Texas as well as Arizona and Nevada. In addition, it operates and staffs a full distribution center in Laval, Quebec, supplying Couche-Tard and Circle K sites in Eastern Canada.
"McLane is constantly enhancing our supply chain capabilities to better serve our customers through traditional distribution services alongside innovative solutions like 3PL," said Chris Smith, president, McLane retail. "As Circle K’s 3PL partner, McLane will deliver a scalable, high-performing logistics solution that meets their evolving needs."
Operating more than 6,800 company-owned stores across the U.S., Circle K operates in 29 countries and territories.
