AMERICAN STORES PLANS TO BUILD DC ON LANCASTER, PA. SITE

SALT LAKE CITY -- American Stores here plans to construct a distribution facility on more than 160 acres it acquired in Lancaster, Pa., last month. Road work to provide access to the site began late last month.The retailer has retained the services of ISC Consulting, the consulting arm of Tibbett & Britten Group, Toronto, to conduct a study of its current and future supply-chain requirements.ISC Consulting

SALT LAKE CITY -- American Stores here plans to construct a distribution facility on more than 160 acres it acquired in Lancaster, Pa., last month. Road work to provide access to the site began late last month.

The retailer has retained the services of ISC Consulting, the consulting arm of Tibbett & Britten Group, Toronto, to conduct a study of its current and future supply-chain requirements.

ISC Consulting is assessing the whole flow of goods from suppliers to American's supermarkets, as well as which techniques from Europe might be applicable to American Stores' supply-chain operations. The purpose of the study is to identify best practices and will include a review of areas such as order cycle management, continuous replenishment, vendor-managed inventory and inbound and outbound consolidation of loads.

Mike Sprague, president of Tibbett & Britten Group, North America, noted that the study will help American Stores determine "what kind of distribution center makes sense for that location and what functions it should carry out."

American Stores' East Coast distribution centers include a 500,000-square-foot south Philadelphia warehouse and a 600,000-square-foot west Philadelphia distribution center, which supply Acme Markets, Malvern, Pa., a subsidiary of American Stores. The study, which should be completed this fall, will also include a 400,000-square-foot warehouse in Lancaster, Pa.