VF Corp. Opens Massive California Distribution Center to Handle Vans & The North Face Orders
VF Corp. has officially launched operations at its new distribution center in Ontario, Calif.
According to the Denver-based company, the new 1.2 million-square-foot facility is the “largest and most efficient” within VF’s global network of 46 distribution centers and employs roughly 550 people during peak periods.
More from Footwear News
Why Vans Exec Marissa Pardini Is Confident the Brand Can Pull Off a Turnaround
Altra President Jen McLaren on How She Intends to Lead the Fast-Growing Running Shoe Brand
The facility’s state-of-the-art automation and capabilities, implemented in partnership with Vanderlande Industries, will enable VF to provide more-efficient distribution services for its owned retail stores, wholesale customers and owned e-commerce orders, the company said.
The center’s 76-million-unit annual shipping capacity will initially service Vans and The North Face, with the capability to add more VF brands. With a digital-first design, the center has the ability to ship 485,000 units per day — twice the processing capacity and efficiency of a traditional distribution center — and provide next-day e-commerce fulfillment for consumers in California, Nevada, Arizona and southern Utah.
As for the facility’s design, VF said it included several features and systems that help reduce the impact on the environment in order to support the company’s sustainability commitments. These measures include an estimated 56 percent in annual energy cost savings through energy-efficient lighting, controls and submetering, a total of 48 percent recycled content in building materials, diversion of 98 percent of construction waste from the landfill, and designing for daylight and views in the regularly occupied areas of the building.
VF also noted that the building design and construction has achieved LEED Gold certification. LEED, or Leadership in Energy and Environmental Design, was created by the U.S. Green Building Council (USGBC) and is the world’s most widely used green building rating system. VF noted that the building is also on track to receive WELL Gold certification, a performance-based standard that focuses on enhancing health and wellness, managed and administered by the International WELL Building Institute (IWBI).
Other features of the building include EV chargers, both indoor and outdoor restorative areas and features a robust fitness facility on site to encourage health and wellness.
Cameron Bailey, EVP of global supply chain said in a statement that the company is “proud” to introduce VF’s largest and most efficient distribution center to date. “Servicing our consumers and customers is our number one focus and this facility allows us to get our product to our consumer faster using technologically advanced equipment, which results in reduced lead times and increased efficiency in meeting consumer demands,” Bailey said.
This move comes just weeks after VF reported revenues slipped 3 percent in the fourth quarter to $2.7 billion from $2.8 billion. A continued sales decline at Vans is one of the reasons for VF’s most recent performance.
But, according to Benno Dorer, the former Clorox Co. chief who’s been steering VF as interim CEO since Steve Rendle left abruptly in December, Vans is expected to return to growth during the second half of the company’s new fiscal year.
On the company’s Q4 earnings call last month, Dorer told analysts that Vans will begin to see profit gains before revenue growth, aided by cost savings and SKU simplification. “The Vans team is operating with a great sense of urgency, and projects are on track,” Dorer said. “We continue to strengthen our team.”
Best of Footwear News
With Minimum Wage on the Rise, These Are Some of the Highest Paid Retail Jobs
What Is Nike's Return Policy? Before You Shop at Nike, Know These Hacks
Sign up for FN's Newsletter. For the latest news, follow us on Facebook, Twitter, and Instagram.
