NASHVILLE, Tenn. (July 9, 2003) — Bridgestone/Firestone plans to close a warehouse in Dayton, Ohio—the last in its plan to whittle down its old distribution centers in favor of a better design.
Nelson Miller, director of physical distribution for BFS, said the Dayton facility will close by the end of September, and work will be shifted primarily to Lebanon, Tenn., with some also going to warehouses in Allentown, Pa., Chicago and Dallas. The 610,000-sq.-ft. Dallas facility recently held its grand opening. The Nashville-based tire maker also recently closed warehouses in Atlanta and Memphis, Tenn.
“Both were very smooth (transitions),” he said.
The closure is the last page in Bridgestone/Firestone's plan to phase out the old warehouses. A study conducted from 1992-94 looked at ways to better coordinate the tire maker's 18 facilities.
“We recommended that over a period of time we go from basically 18 relatively small warehouses to seven large (centers),” Mr. Miller said.
The first of the new warehouses was built in Chicago in 1995 with a design focused on throughput as much as storage. The company had expected 10-15 percent efficiency improvement, but it delivered more in the range of 35-40 percent, Mr. Miller said. Of the seven warehouses, six are new; the last-standing old facility is in Albany, Ga.