Remington Arms Company
Remington Arms Company designs, produces, and sells sporting goods products for the hunting and shooting sports markets as well as for the military, government, and law enforcement. Headquartered in Madison, North Carolina, it distributes its products throughout the U.S. and in more than 55 countries. Founded in 1816 in upstate New York, the company is one of the nation’s oldest continuously operating manufacturers.
The Challenge
At the time, Remington had three different warehouses distributing to major retailers like Wal-Mart and Kmart and specialty retailers like Academy Sports, Bass Pro Shops, Cabela’s Dick’s Sporting Goods, and Gander Mountain. Customers were receiving multiple shipments from these different warehouses each week. Not only was this overlap inefficient, customers – especially the large retailers – did not want multiple deliveries.
Our Strategy
To solve this problem, Remington decided to consolidate its distribution into one central facility with one third-party provider. With the lack of adequate space on the market, Remington hired us to construct a modern state- of-the-art facility for their new centralized distribution center.
Results
We executed the site selection process, identified the site and negotiated significant economic incentives for Remington. We designed and built the facility, engineered the facility layout and sourced all material handling equipment. We negotiated a sale/leaseback arrangement for the facility, further reducing occupancy costs. In addition to the economic incentives and shared facility sale revenues, Remington reduced space requirements by 50,000 square feet and overall costs by $500 million in the first year alone. These savings resulted in a 5% decrease in the distribution cost per unit.