PPGL currently freights imported stock to Westport for onwards initial distribution to its Postie+ stores across New Zealand. The turnaround time has compounded competitive pressures.
"We have decided the situation can only be resolved by moving initial distribution activities to a specialist distribution centre operator using the latest technology which has been trialled successfully with the PGGL owned Arbuckles and Baby City chains. We will achieve rapid fresh stocking of our stores and our costs will reflect only the space we actually use month by month. Significant savings are likely to be generated from the 2008 year."
Mr Boskell was in Westport this morning to meet local management and the staff of the company's Schooltex business and distribution centre.
"The planned changes are not a reflection on our loyal Westport staff who have worked diligently for the company for many years, or on the town's leaders who have worked hard behind the scenes to promote the concept of a new modern distribution centre.
The company employs approximately 90 staff in Westport. Mr Boskell said he was not in a position to comment on the extent to which job numbers will reduce.
The third party operator is the Contract Logistics business jointly owned by New Zealand Post and DHL.
marketing@alchempro.com
