Circle K Boosts Supply Chain Efforts
Circle K is giving its supply chain efforts a boost as the convenience store chain has signed lease agreements with three distribution centers.
The facilities are located in Otsego, Minn.; Lockbourne, Ohio; and Hazelwood, Mo., with each averaging approximately 266,000 square feet of space. The trio of DCs will supply products to some 1,600 Circle K and Holiday stores in 14 states with national and private brand packaged snacks, candy, beverages, tobacco/nicotine, and other convenience items not normally supported through Direct Store Delivery.
News of the lease agreements was reported by Store Brands’ sister publication Convenience Store News.
The agreements are part of Circle K’s strategy to contact out all warehouse and distribution operations at these sites to third-party logistics (3PL) providers that have expertise in supporting convenience stores and other small-format retailers.
Trey Power, senior vice president of global merchandising for Circle K, said expanding its hybrid distribution model into the Midwest will provide the retailer with better control over key parts of the supply chain and improve inventory management processes and capabilities.
"We have a long, successful history of operating dedicated warehouse and distribution centers in Texas and Arizona, with the support of strong and capable 3PL partners,” he said.
When the new distribution centers come online, Circle K will have five 3PL distribution centers that supply more than 2,600 stores in the U.S. The retailer’s existing facilities are located in San Antonio and Phoenix and supply stores in parts of Texas as well as Arizona and Nevada.
