Streamlining Business Processes that Positively Impact the Environment and Our Bottom Line

December 2022

Nate

Vendor Contracting & Compliance

Altria Group Distribution Company

Altria Group Distribution Company’s (“AGDC”) Point of Sale warehouse is where all point of sale (“POS”) materials (think in-store signage and fixture headers) are stored for distribution to AGDC’s field sales force and ultimately to retailers across the nation. Annually, this warehouse ships over 650K packages directly to Sales Managers and retail stores representing more than 12 million individually picked items. AGDC’s distribution infrastructure is a crucial component of our value chain – responsibly and efficiently delivering our products to retailers and subsequently to our adult consumers.

As our merchandising strategy evolved and business needs changed, I worked cross-functionally to develop a business case for relocation of the facility and selection of a new operator. Shifts in long-standing operations and business relationships can be extremely challenging and risk disrupting normal operations. However, our team knew relocating this operation was important for AGDC’s future operational success.

 

In less than a year, our new fulfillment operation delivered reductions in operating costs.

 

I was intentional about identifying a new location and building to prioritize efficiency and sustainability. The centralized location of our new facility reduces travel distance to our distribution hubs, field sales force, and retailers. The warehouse facility is also brand new and has updated environmentally-focused features required for new warehouse buildings (motion activated LED lighting, ambient temperature controls, ceiling height for efficient product storage resulting in a smaller building footprint).

In less than a year, our new fulfillment operation delivered reductions in operating costs, enhancements in inventory management, and reduced transit time for delivery of POS materials. The new operation also positively impacts our environmental footprint as we drive efficiencies and reduce material waste across our shipping and distribution process. Related savings have already been reallocated towards developing future business process and technology enhancements for AGDC’s field sales force.

Protect the Environment

Read more about our efforts on Climate Change, Natural Resource Conservation and our responsibility to minimize the Environmental Impact of Products.

As an experienced hire, Marine Corps veteran, and a 23-year employee at Altria, I’ve had the privilege to support and lead many projects. However, I feel all that experience prepared me for this project. It was extremely challenging and exciting. While collaborating with my colleagues, I kept top of mind Altria’s commitment to stewardship and impact in the communities in which we operate. This is why I joined Altria and love what I do; I want every day to challenge me in new ways to be better than the day before.