HSN’s Distribution Center Consolidation Will Speed Up Delivery Times

HSN’s plan to consolidate its Roanoke, VA distribution center with its DC in Piney Flats, TN, will lead to faster delivery times for its customers, CEO Mindy Grossman said during the company’s second-quarter earnings call earlier this month.

HSN’s company-owned newly automated facility in Tennessee is expected to increase speed of delivery to HSN’s customers and generate labor and transportation savings beginning in the back half of 2016. Grossman said HSN plans to ultimately use much of these savings to remain competitive in the marketplace and drive sales demand, as appropriate, including to fund additional shipping and handling initiatives.

“The reason why the delivery time will be shorter is because we’ll be able to get the packages out much faster because the facility will be highly automated,” Grossman said. “So we’ll be able to ship out the packages much faster versus what the current time is today.”

Grossman added that HSN’s existing Roanoke facility is antiquated. So by being able to consolidate that, HSN will be able to pick, pack and ship customers’ orders on a much quicker methodology.

HSN announced the consolidation plans, which will result in he loss of 350 Roanoke-based jobs, in June. HSN said in a statement that the current Roanoke facility cannot accommodate the expanding needs of its distribution network, our plans for fulfillment automation and the resulting and necessary equipment and upgrades.

HSN also has distribution centers in Fontana, CA, and Ronkonkoma, NY.

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