Jul 05, 2023
J&J Snack Foods enhances distribution with Texas cold
The 117,000-square-foot storage facility in Terrell will store and ship the food manufacturer’s Superpretzel, Icee, Luigi’s Real Italian Ice products and more. The food manufacturer is focused on
The 117,000-square-foot storage facility in Terrell will store and ship the food manufacturer’s Superpretzel, Icee, Luigi’s Real Italian Ice products and more.
The food manufacturer is focused on revamping how it manages products in its warehouses.
"The way we operate today is we have the majority of our stock shipping out of 3PL partners — meaning freezers we do not own," Montgomery told Supply Chain Dive
Through it’s Texas self-owned warehouse, J&J is focused on consolidating multiple shipping and storage operations into fewer larger sites, the VP said. “When we do that, we can consolidate all of our stock in these buildings instead of having it spread out across more than a dozen different buildings across the nation.”
The food manufacturer strategically selected locations for its new cold storage facilities. J&J Snack Foods surveyed where most of its business is centered, and determined where it was optimal to add a distribution center on each coast — Texas being at the center.
"These initiatives will simplify our logistics network by moving from over 30 warehouse locations to less than 10, resulting in improved customer service and lower distribution cost," President and CEO Dan Fachner said in an earnings statement.
The maker of ICEE and Dippin’ Dots has targeted cost-cutting in operations and logistics following excessive losses from a failed ERP implementation and higher distribution expenses developed during Q2 of last year.