Borders Closes U.K. Distribution Center to Save "Book Miles"
March 11, 2008 - Borders CEO Philip Downer says the company closed its
Cornwall, U.K., distribution center in a bid to reduce the number of
miles books must travel between publisher and retail store,
theBookseller reports.
Borders' American-style distribution system is ill-suited to the U.K.'s more concentrated layout, according to Downer. "We have been running on a U.S. model for the past ten years, which had an integral reliance on the distribution center. It was built to service a U.S. environment and it was more than our business needs," he says. Using the Cornwall location as a waystation was causing books to "[travel] more than they should."
Downer is hoping the closure of the Cornwall facility will encourage publishers and wholesalers to ship direct to retail stores, a move which could save "several million book miles per
year." Downer says that, in addition to any green benefits, the more direct system will help speed up the shipping process, minimizing the amount of surplus stock retailers must keep on hand in case suppliers run low.
Borders is currently in talks with publishers to develop a new system for supplying British retailers.
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