Newell Rubbermaid Consolidates Distribution Network

1/16/2008

Newell Rubbermaid is continuing to reduce costs and improve efficiency in its global distribution network with the planned opening of a fifth new multi-branded distribution facility. The 800,000 square-foot distribution center in metro Atlanta, which will have 300 employees in two shifts, is part of Newell Rubbermaid's ongoing strategy to convert many single-brand distribution centers to select multi-brand distribution centers that are located more centrally. "This new distribution center further supports our global objective to achieve operational excellence and best total cost across our strong portfolio of brands," says Mark Ketchum, president and chief executive officer of Newell Rubbermaid. "We are continuing to make solid progress in eliminating redundancies and reducing our operational footprint, while increasing efficiency and delivering improved customer service." The new facility continues Newell Rubbermaid's progress in rationalizing its global distribution network, while reducing transportation costs and improving shipping efficiency. The company's global distribution facility footprint has been reduced from 96 facilities to fewer than 80, with a goal of decreasing to approximately 50 over the next two years. This global initiative is expected to yield significant increases in the utilization rates for each facility while driving anticipated cost savings of $30 million and improved customer service.