TFG launches massive distribution centre in Joburg
The Foschini Group (TFG) has launched the first phase of its new 75,000-square-metre Riverfields distribution centre.
Located in Midrand, Gauteng, TFG says the distribution centre will help it revolutionise fulfilment costs, operating capacity, and omni-channel capabilities.
“We are pleased to open and launch phase 1 of our Riverfields distribution centre, which is a key strategic investment for TFG and a game-changer for our business,” said Anthony Thunström, TFG CEO.
“This facility will not only enhance our operational efficiency and scalability, but also enable us to deliver a superior customer experience across all our channels.”
TFG says the new distribution centre is its first step to consolidate 13 sub-scale distribution centres, with aims to improve efficiency and responsiveness.
“This enables TFG to adopt global fashion supply chain best practice by keeping inventory further back in the chain with a ‘pull model’ to optimise stock management and boost gross margins,” it added.
The move will also bring its online distribution and fulfilment in-house while reducing in-store picking and the need for expensive outsourcing.
The company wants to process 70% of all online orders through the Riverfields distribution centre, which it says will reduce fulfilment costs and improve its online business’ profitability.
“With TFG’s continued strategic expansion plans, Riverfields ensures we are well-equipped to meet the evolving demands of our growing customer base,” said Thunström.
TFG plans to complete the ramp-up of throughput at Riverfields by the end of 2023 and expects to see the benefits of the new DC from the 2024 financial year.
More photos of TFG’s Riverfields distribution centre are included below.
TFG Riverfields distribution centre
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