Retailers struggling with last-mile delivery efficiency, inventory turnover, and rising return rates may find new hope in a strategic move by Averitt Express. The prominent freight and logistics service provider has officially launched a dedicated retail distribution business unit—Averitt Retail Distribution Services—to address complex supply chain challenges.
Strategic Market Focus: Southern Stronghold With National Ambitions
The new division will initially concentrate on key Southern U.S. markets including Atlanta (Georgia), Charlotte (North Carolina), Miami and Lakeland (Florida), along with Houston and Dallas (Texas). These strategically selected retail hubs feature robust consumer bases and dynamic market demands.
Averitt plans to establish specialized retail distribution centers in these regions, equipped with advanced conveyor systems and scanning technologies to deliver premium distribution services. Notably, these facilities will operate independently from Averitt's existing less-than-truckload (LTL) cross-dock centers, allowing exclusive focus on retail distribution needs.
Addressing Market Gaps Through Specialization
Greg LaPlant, Averitt Express Communications Coordinator, explained the strategic rationale: "While we've successfully served retail clients for years through our transportation services, certain retail distribution models fell outside our core capabilities. This dedicated unit allows us to combine our retail expertise with specialized distribution knowledge to serve this market segment properly."
LaPlant noted that Averitt had previously declined some retail opportunities because their requirements didn't align with existing LTL, truckload, or standard supply chain operations. "We've spent months designing this new division specifically to bridge that gap," he added.
Comprehensive Service Offerings for Retail Optimization
Averitt Retail Distribution Services targets retailers lacking regional distribution centers but seeking to enhance multiple supply chain metrics:
- Speed-to-shelf: Accelerating product movement from suppliers to store displays
- Product availability: Ensuring consistent stock availability to prevent out-of-stock situations
- Inventory turnover/store replenishment: Optimizing stock rotation and minimizing excess inventory
- Shipment integrity: Maintaining product condition throughout the delivery process
- Vendor-to-store management: Streamlining logistics between suppliers and retail locations
- Order-to-cash cycle: Reducing delays between order processing and payment collection
- Chargeback reduction/MABD compliance: Minimizing penalties for late deliveries
Technology-Driven Distribution Network
The new unit will leverage cutting-edge technologies including:
- High-efficiency conveyor systems to minimize manual handling
- Advanced scanning technology for real-time inventory tracking
- Data analytics platforms for supply chain optimization
Competitive Differentiation
Averitt's retail distribution service stands apart through:
- Customizable solutions tailored to specific retailer requirements
- Specialized teams with deep retail supply chain expertise
- An established transportation network across Southern markets
This strategic expansion positions Averitt to become a leader in retail distribution services, helping retailers navigate today's complex supply chain challenges while preparing for future industry demands.