"After completing a review of our distribution network, we have made the very difficult decision to close our North Haven distribution center," said Mark Smith, Stop & Shop president and CEO.
"Unfortunately, the location, size and age of this facility limit our ability to service our stores in the most logistically effective way and our markets that are experiencing growth cannot be supported by it."
Smith said that Freetown is well positioned to serve the company's distribution needs in New England.
Closing the North Haven distribution center will affect approximately 850 union and non-union Stop & Shop associates. The company will offer employees a separation package including comprehensive career center assistance. For union associates, this package will be based on discussions with their union leadership.
RFID Producing Huge Benefits For Germany's METRO Group
he METRO Group stands to save about $10 million (or 8.5 million euros) as a result of its use of radio frequency identification (RFID) and electronic data interchange (EDI), according to a new study that the German retailer presented at the National Retail Federation's annual convention and expo in New York last month.
The study, conducted in cooperation with Minneapolis-based Procter & Gamble and IBM, involved warehouses and stores of METRO's Cash & Carry and Real divisions, as well as a Procter & Gamble warehouse.
"The research results confirm our optimism about RFID technology," says Dr. Gerd Wolfram, managing director of METRO Group Information Technology GmbH. "Thanks to RFID, we're able to significantly accelerate time-consuming standard processes in the incoming goods area."
The study also found that in order-picking and at the outgoing goods portal, 16 seconds per pallet can be saved. This is complemented by reduced logistics costs as the faster handling of incoming goods processes shortens waiting times for delivery trucks.
The METRO Group has been introducing RFID in stages along its entire supply chain since November 2004, and has been working with international committees such as EPCglobal and GS1, both headquartered in Brussels, Belgium, to further the development of universal standards for RFID use.
During the course of this year, the METRO Group will be introducing Generation 2 RFID tags throughout it network. Comprehensive tests on the latest chip technology have already produced convincing results, such as improved reading precision.