Dollar General Streamlines Supply Chain with Focus on Owned Distribution Centers

Executive Summary:

Dollar General is scaling back its use of temporary warehouse facilities to improve supply chain efficiency and reduce costs. In Q3 2024, the company exited four temporary sites, marking a total of 15 closures over the past year. By next year, the retailer plans to shut down its final three temporary warehouses, according to CEO Todd Vasos.

This strategic shift aligns with Dollar General rsquo;s ongoing efforts to optimize its supply chain. The company has expanded its owned distribution network, adding new centers in Colorado and Arkansas, while integrating automation technologies to improve operational performance. These upgrades have reduced delivery distances (stem miles) by 4% and significantly improved on-time and in-full delivery rates year over year.

Further enhancements include modernizing sorting processes in distribution centers for the first time since 2017, streamlining shelf-stocking for stores and supporting sales growth. Overall, Dollar General rsquo;s investments in self-owned facilities and automation reflect its commitment to improving efficiency, lowering costs, and enhancing customer service.