Dive Brief:
- Alimentation Couche-Tard, parent company of c-store chain Circle K, has partnered with McLane Company to receive third-party logistics services from the distributor, according to a Tuesday announcement.
- Through the agreement, McLane will operate three distribution centers in the Midwest dedicated to supporting operations in 1,600 Circle K and Holiday c-stores in 14 states.
- This announcement comes less than a week after McLane announced it was expanding its partnership with Wawa to support the retailer’s Midwestern growth.
Dive Insight:
Couche-Tard and McLane’s partnership is intended to “enhance control and efficiency within its merchandise supply chain,” according to the announcement. It will help Couche-Tard’s stores be more agile, ensure deliveries arrive on time and make inventory management more efficient.
The new distribution centers — which Couche-Tard agreed in December to lease — are located in Otsego, Minnesota; Lockbourne, Ohio; and Hazelwood, Missouri. They will supply items including national brand and private label snacks, candy and beverages.
“This partnership with McLane allows us to streamline our supply chain operations and improve overall service to our stores,” said Trey Powell, senior vice president of global merchandising for Circle K. “By tapping into McLane’s extensive logistics network and expertise, we’re enhancing our ability to serve our customers with the right products at the right time, in the most efficient way possible.”
With the three new sites, Couche-Tard will have five hybrid distribution centers supplying more than 2,600 company-owned c-stores in the U.S. The other two are not managed by McLane, a spokesperson for the distributor confirmed.
Supply chains are in the spotlight thanks to growing uncertainty around proposed and implemented tariffs on imports from a number of countries. McLane noted that in addition to services like transportation and marketing, it can also offer support for warehousing and tariff management for retailers of all sizes.
Circle K has been working on network and logistics updates across its global network in recent months. In addition to the McLane agreement, it also partnered with Quorso earlier in April to deploy the tech company’s Intelligent Management Platform in Circle K locations in 12 European countries.
