Lowe's 1998 Annual Report Download - page 10

Low e’s Know sLow e’s Know s
As the competitive landscape of our industry continues
to change, Lowe’s logistics advantage becomes even more
powerful. Complementing our aggressive expansion, we
have invested more than $300 million over the past five
years in our five state-of-the-art regional distribution centers
(RDC’s) covering over four million square feet. As
“Lowesland” continues to expand, our distribution network
becomes more efficient as we leverage the costs of these
facilities.
The concept is simple: order large quantities and get
deep discounts. The value that is created for the customer is
two-fold. First, because Lowe’s places larger orders and
realizes discounts, we have a lower cost in the product —
resulting in a lower cost to the customer. Second, the
centrally located RDC’s reduce the lead time needed for store
ordering and shipping; rather than maintaining unnecessary
stock, stores can use their valuable shelf space to carry a
wider selection of products for our customers.
As our expansion continues, we’ll be building additional
RDC’s to support our growing store base. In 1999, we’ll open
80 to 85 new stores and continue to build upon Lowe’s
traditions of unbeatable value and superior customer
service. We look forward to serving each customer as the
most important customer of the day.
Logistics and Distribution
“ Keeping our stores in
stock is priority #1.”
— Billy Reynolds, Shipping Operations
Manager, Low e’s Regional Distribution
Center, Statesville, NC
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