Strategically positioned in Midrand, Gauteng, the Riverfields DC is a first step to consolidate 13 sub-scale distribution centres, enhancing efficiency and responsiveness. This enables TFG to adopt global fashion supply chain best practices by keeping inventory further back in the chain with a “pull model” to optimise stock management and boost gross margins.
TFG's CEO, Anthony Thunström, said, "We are pleased to open and launch phase 1 of our Riverfields distribution centre, which is a key strategic investment for TFG and a game-changer for our business. This facility will not only enhance our operational efficiency and scalability, but also enable us to deliver a superior customer experience across all our channels. The launch of Riverfields is another milestone in delivering on our vision of creating remarkable omnichannel experiences for our customers."
Riverfields will enable TFG to optimise its omni-channel fulfillment by bringing online distribution and fulfilment in-house, as well as reducing in-store picking, eliminating the need for expensive outsourcing. The target is to process 70% of all e-commerce orders through the new DC, which will significantly reduce fulfillment costs and improve the profitability of TFG's online business.
The new DC will also ensure faster and more reliable delivery for customers, better stock availability, and improved product quality.
“The Riverfields Distribution Centre is an example of TFG's commitment to driving greater innovation and efficiency. With TFG’s continued strategic expansions plans, Riverfields ensures we are well-equipped to meet the evolving demands of our growing customer base,” said Thunström.
TFG plans to complete the ramp-up of throughput at Riverfields by the end of 2023 and expects to see the benefits of the new DC from the 2024 financial year.