Strengthens National Distribution Network
Enhances Customer Service Levels and Same Day Shipping Capabilities
PORT WASHINGTON, NY / ACCESSWIRE / September 9, 2019 / Systemax Inc. (NYSE:SYX), today announced that Global Industrial, its value added industrial products distribution company, had opened its new distribution center in DeSoto, TX and has commenced full operations, including outbound shipments to customers. Located in the Dallas metro area, the distribution center will allow Global Industrial to significantly increase service levels to customers in the Southwest U.S. and provide additional capacity to support its continued growth.
Barry Litwin, Chief Executive Officer of Systemax, said, "We have generated strong organic growth that has generally outpaced most of our peers in the industry for several years and the additional capacity this distribution center provides will allow us to efficiently support our continued expansion, drive long term operating leverage and enhance customer satisfaction."
Ritesh Chaturbedi, Chief Operations Officer of Systemax, said, "This new facility is a key component of our differentiated customer experience strategy. It strengthens our national distribution network, allowing us to move closer to customers and significantly increases service levels by improving same day shipping and next day delivery to the Southwest U.S."
Global Industrial has an integrated and national footprint of seven distribution centers serving customers across the U.S. and Canada. The company's distribution centers encompass approximately 2.5 million square feet of distribution space and are located in Buford, GA, Robbinsville, NJ, Las Vegas, NV, Dallas, TX, Pleasant Prairie, WI, and in Calgary and Toronto, Canada. The Dallas distribution center is one of Systemax's largest, at almost 500,000 square feet, and most advanced with improved order flow and output capabilities.
About Systemax Inc.
Systemax Inc. (www.systemax.com), through its operating subsidiaries, is a value added distributor of industrial products in North America going to market through a system of branded e-Commerce websites and relationship marketers. The primary brand is Global Industrial.
This press release contains forward looking statements within the meaning of that term in the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). Additional written or oral forward-looking statements may be made by the Company from time to time in filings with the Securities and Exchange Commission or otherwise. Any such statements that are not historical facts are forward looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are based on management's estimates, assumptions and projections and are not guarantees of future performance. Forward-looking statements may include, but are not limited to statements regarding: i) projections or estimates of revenue, income or loss, exit costs, cash flow needs and capital expenditures; ii) fluctuations in general economic conditions; iii) future operations, such as, plans relating to new distribution facilities, plans for utilizing alternative sources of supply in response to government tariffs and trade actions, and plans for new products or services; iv) plans for acquisition or sale of businesses, including expansion or restructuring plans, such as our exit from and winding down of our North American Technology Group ('NATG') and European operations; v) financing needs, and compliance with financial covenants in loan agreements; vi) assessments of materiality; vii) predictions of future events and the effects of pending and possible litigation; and viii) assumptions relating to the foregoing. In addition, when used in this release, the words 'anticipates,' 'believes,' 'estimates,' 'expects,' 'intends,' and 'plans' and variations thereof and similar expressions are intended to identify forward looking statements.
Other factors that may affect our future results of operations and financial condition include, but are not limited to, unanticipated developments in any one or more of the following areas, as well as other factors which may be detailed from time to time in our Securities and Exchange Commission filings: general economic conditions, such as customer inventory levels, interest rates, borrowing ability and economic conditions in the manufacturing industry generally, will continue to impact our business; the imposition of tariffs and other trade barriers, as well as retaliatory trade measures, have caused us to raise the prices on certain of our products and seek alternate sources of supply, which could negatively impact our sales or disrupt our operations in the future; increases in freight and shipping costs have from time to time impacted our margins to the extent the increases could not be passed along to customers in a timely manner and may impact our margins again in the future, and factors affecting the shipping and distribution of products imported to the United States by us or our domestic vendors, such as global availability of shipping containers and fuel costs; our reliance on common carrier delivery services for shipping inventoried merchandise to customers; our reliance on drop ship deliveries directly to customers by our product vendors for products we do not hold in inventory; delays in the timely availability of products from our suppliers could delay receipt of needed product and result in lost sales; our ability to maintain available capacity in our distribution operations for stocked inventory and to enable on time shipment and deliveries, such as by timely implementing additional temporary or permanent distribution resources, whether in the form of additional facilities we operate or by outsourcing certain functions to third party distribution and logistics partners; we compete with other companies for recruiting, training, integrating and retaining talented and experienced employees, particularly in markets where we and they have central distribution facilities; this aspect of competition is aggravated by the current tight labor market in the U.S.; risks involved with e-commerce, including possible loss of business and customer dissatisfaction if outages or other computer-related problems should preclude customer access to our products and services; our information systems and other technology platforms supporting our sales, procurement and other operations are critical to our operations and disruptions or delays have occurred and could occur in the future, and if not timely addressed could have a material adverse effect on us; a data security breach due to our e-commerce, data storage or other information systems being hacked by those seeking to steal Company, vendor, employee or customer information, or due to employee error, resulting in disruption to our operations, litigation and/or loss of reputation or business; managing various inventory risks, such as being unable to profitably resell excess or obsolete inventory and/or the loss of product return rights from our vendors; meeting credit card industry compliance standards in order to maintain our ability to accept credit cards; rising interest rates, increased borrowing costs or limited credit availability, including our own ability to maintain satisfactory credit agreements and to renew credit facilities, could impact both our and our customers' ability to fund purchases and conduct operations in the ordinary course; pending or threatened litigation and investigations, as well as anti-dumping and other government trade and customs proceedings, could adversely affect our business and results of operations; sales tax laws or government enforcement priorities may be changed which could result in e-commerce and direct mail retailers having to collect sales taxes in states where the current laws and/or prior interpretations do not require us to do so; and extreme weather conditions could disrupt our product supply chain and our ability to ship or receive products, which would adversely impact sales.
The Plunkett Group
SOURCE: Systemax, Inc.
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