CPI continues consolidation of warehouses

South Australia kicks starts CPI’s plans for rationalising its warehouses in each state.

As part of the plans, each state office will be reduced to only one warehouse, which the company believes will deliver greater efficiencies. According to Lachlan Duncan, chief operating officer and company secretary, the move will take place over a two-year period.

“This rationalisation from multiple to single warehouses per region is planned to occur as current leases expire over the next two years as suitable replacement premises are secured,” he explained.

The first step of the rationalisation program was completed in March this year in South Australia, where the total number of facilities was reduced from two main warehouses that were supported by third-party outside storage back to one main store.

The decision was first announced by managing director, Bernard Cassell, in February this year. “Further cost reductions are expected as the warehouse rationalisation program is continued over the next two years,” he said.

CPI has offices in South Australia, Western Australia, Queensland, Victoria and New South Wales. The plan is expected to be complete by 2011.