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is packing up this summee at thediscount retailer’s headquarters and four other distribution facilitiexs after the merchant opte to not renew a logistics contracr that expires in July. The Pa.-based Penske said 186 workers, including 53 in could be affected when its contractwith Columbus-baser Big Lots (NYSE:BIG) expires July 31. Penske spokesmabn Randy Ryerson said the company has worked with the retailefsince 1991. The 1,300-store Big Lots has chosemn a new third-party logistics provider to continue the warehousing and distributiohn work that Penske performed atthe retailer’sz Phillipi Road headquarters and its distributiojn centers in Tremont, Pa; Montgomery, Ala.
; Rancho Cucamonga, and Durant, Okla. Timothy Johnson, Big vice president of strategic planning andinvestor relations, said more than a dozeb carriers bid for the He declined to disclose the company Big Lots selected to succeed Penske. Big Lots and Penske representativessaid they’re workin g with truck drivers looking to continue work under the new logisticsx provider. Johnson said the company met with workers over the weekendd to introduce the new In the event that some workersare cut, Ryerso n said privately held Penske will work with the state “to make sure employeeds are aware of different services.” Penske employs about 20,000 workers worldwide.
Asked why Big Lots opted to bid for a new contracto after thelatest five-year contracgt with Penske, Johnson said, “a lot has changed in transportationm in the past five years. We owed it to our associatesx and shareholders to take a freshg look at how we handlreoutbound transport.” The loss of the Big Lots contractf comes less than a year aftefr Penske was replaced at a warehouse in Chattanooga, Tenn.-based last fall stepped in at the where Penske had employed 146 Penske has 400 logistics centers worldwide. Its Central Ohio operationws include a number of distribution and warehousinfg facilities inthe region.
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