LESCO Moves Forward with Hub-and-Spoke

LESCO enters the second phase of its new distribution logistics strategy.

CLEVELAND – LESCO announced it has completed Phase I of its “Hub and Spoke” logistics network with the retrofitting of its existing distribution centers. Additionally, LESCO has launched Phase II of the network, which will include the opening of at least four new distribution facilities over the next 18 months.

“One of the keys to the LESCO model creating value is efficient, cost effective product distribution,” stated Michael DiMino, president and chief executive officer. “We designed Phase I of our ‘Hub and Spoke’ network to support our current service centers and customers. Phase II will support our future service center expansion and continued sales growth.” 

The company has completed the retrofitting of its regional logistics hubs in New Jersey, Massachusetts, Ohio and Florida. This retrofitting included the re-engineering of operational processes, space planning and the reorganizing of distribution routes to service centers and customers for the optimization of delivery times and costs. LESCO Service Centers will be replenished during off-hours and direct shipments to customers will be managed regionally to provide the highest serviceability to its customers.

LESCO will open regional hubs in Georgia, Texas, Illinois and California during the next 12 to 18 months. When Phase II is completed, more than 95 percent of LESCO’s customer base will be within a one-day transit time from a regional hub.