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Organic Garage Finalizes Its Transition to a Decentralized Distribution Model; Anticipates Savings of $1M Annually
April 27, 2021 GMT
Organic Garage Ltd. (“
Organic Garage ” or the “
Company ”) (TSXV: OG; FRA: 9CW1; OTCQX: OGGFF), one of Canada’s leading independent organic grocers, announced today that it has finalized the closing of its distribution and warehouse facility and has moved to a fully decentralized distribution model. Cost savings from the transition are anticipated to exceed $1 million annually.
Organic Garage had originally adopted a hub-and-spoke model where the centralized distribution facility was to service its group of stores with the intent of being able to exercise greater control over its supply chain, albeit at substantial expense. After analyzing the costs of continuing to run the centralized distribution model, it was determined that the savings w
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