Two from the ground up
Gary R. Forger, Editorial Director -- Modern Materials Handling, 6/1/2002
Every company has its ups and downs. And they don't necessarily coincide with the general economic cycle or even that of a particular industry. Just ask the people over at GM's Cadillac and Big Lots.
Both have had a rough go lately. Big Lots, the country's largest closeout retailer, buys remainders from over 3,000 vendors, but found it increasingly less profitable to sell everything from paper towels to boats. Cadillac, meanwhile, has had troubles closing showroom sales on a number of models for some time.
The two might be in vastly different businesses, but they did find themselves suffering from the same malaise. "It takes years to get customers, but only minutes to lose them," as Michael Potter, Big Lots' chief executive, recently told Forbes.
Cadillac and Big Lots are now deep into their rebuilding, applying many different tactics to restore their bottom lines. But once again, they found themselves with something in common. Their supply chains needed help. Interestingly enough, both decided supply chain improvements start within the four walls of their own facilities.
Cadillac went out and built the first greenfield plant at GM since Saturn's Tennessee plant in the late 1980s. Eighteen production buildings in Lansing, Mich. were leveled so the $560 million plant could be built. See the Manufacturing Spotlight - (Cadillac moves to a new level ).
Not being a manufacturer of anything, Big Lots focused on its distribution centers.
The company's Tremont, Penn., DC, which is also new from the ground up, is well on its way to supplying 350 stores. See the Warehouse of the Month - (Big Lots and more ).
The fact that both are entirely new facilities should not be taken lightly. Not only is each a reflection of the company's commitment, but both decided they needed a clean slate within their facilities to be viable in the future.
As plant manager Bob Anderson explains, "We are not doing anything here that GM has not done before. We just have the luxury of doing it all from scratch." Anderson may call it a luxury, but GM is not known for spending on materials handling systems without a sharp eye for the expected return on investment.
Over at Big Lots, the new DC is quickly becoming the company's most efficient. "Tremont has already exceeded our expectations for the first year," says Hal Wilson, senior vp for distribution and transportation services. Not only that, but the facility will be the "cookie cutter building" for all future DCs at Big Lots.
In this time when greenfield facilities are the exception, the Cadillac and Big Lots stories are notable. Two companies, two fresh starts, two visions for the future.



















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