The first stage of the new 75,000-square-meter Riversands distribution center by the Foschini Group (TFG) has begun construction.
The Midrand, Gauteng-based distribution center, according to TFG, will enable it to revolutionize operating capacity, omni-channel capabilities, and fulfillment costs.
“We are happy to open and launch our Riverfields distribution center, which is a game-changer for our business and a key strategic for TFG,” stated TFG CEO Anthony Thunström.
“This facility will improve our scalability and operational efficiency while also allowing us to provide an exceptional customer experience across all of our channels.”
According to TFG, the new distribution center is the first phase in a plan to combine 13 sub-scale distribution centers to increase responsiveness and efficiency.
“By maintaining inventory further back in the chain with a ‘pull model,’ TFG is able to adopt global fashion supply chain best practices, maximizing stock management and increasing gross margins,” the statement continued.
Along with bringing online distribution and fulfillment in-house, the move will eliminate the need for costly outsourcing and in-store picking.
In an effort to lower fulfillment costs and boost the profitability of its online business, the company plans to process 70% of all online orders through the Riversands distribution center.
“We are confident that Riverfields is prepared to handle the changing needs of our expanding clientele thanks to TFG’s ongoing strategic expansion plans,” Thunström added.
By the end of 2023, TFG hopes to have completed the ramp-up of throughput at Riverfields, and it anticipates benefiting from the new DC starting in the 2024 fiscal year.
The images below show more views of TFG’s Riversand distribution center.