DHL Expands Distribution To Keep Pace With NH Liquor Outlet Sales

Press release from NHLC:

DHL Supply Chain broke ground on a 27,000-square-foot expansion of its distribution center in Bow, which houses products sold in New Hampshire’s 67 NH Liquor & Wine Outlet locations and by more than 6,200 licensees across the state. To keep pace with the New Hampshire Liquor Commission’s (NHLC) sales growth, the distribution center will increase its capacity by 200,000 cases, from 1.2 million cases to 1.4 million cases. The expansion of the DHL Supply Chain distribution center, which currently spans 244,000 square-feet, is expected to be completed by spring 2023. NHLC and DHL Supply Chain celebrated the expansion earlier today with a groundbreaking ceremony.

NHLC and DHL Supply Chain entered a 20-year warehousing and transportation contract in 2013 to better serve NHLC’s 12 million annual customers. The additional space will be primarily used to store the state’s most popular products, including Tito’s Handmade Vodka, Jameson Irish Whiskey and Josh Cellars Cabernet Sauvignon.

“Today’s groundbreaking marks an important day, not only for NHLC and DHL Supply Chain, but for the State of New Hampshire,” said NHLC Chairman Joseph Mollica. “This 27,000-square-foot expansion, designed to enable us to capitalize on our most popular products, will allow us to continue providing the best selection and value to the Granite State. We are extremely grateful for our partnership with DHL Supply Chain and couldn’t be more pleased construction on this project is underway.”

This expansion, along with the building’s recent innovative upgrades, will allow DHL Supply Chain to continually support NHLC’s sales growth by increasing efficiency within the DHL Distribution Center. Over the past five years, NHLC sales have grown by 8.2%, from $712.4 million to $771.1 million. In Fiscal Year 2021, NHLC surpassed $4 billion in total net revenue delivered to the state of New Hampshire, supporting essential state services.

In addition to this expansion project, DHL Supply Chain, which has invested more than $50 million into the building since partnering with NHLC in 2013, has also made several strategic improvements and enhancements to increase efficiency throughout the building. To better store the large quantity of product that comes into the warehouse each day, DHL Supply Chain recently added a new and improved racking system in multiple areas of the building, including above all inbound and outbound docking doors, overhead racking and pushback racking over its bulk area. This new racking system allows DHL Supply Chain and NHLC to store 65,000 more cases of product. In an effort to combat the daily issue of lack of space due to an influx of high SKU’s with a low case count, DHL Supply Chain also adjusted its layout and added more space for products in clearance sections.

Additionally, DHL Supply Chain recently upgraded its technology to improve efficiency within the warehouse, including its warehouse manager system, which controls the tracking of inventory. DHL Supply Chain upgraded the system to the latest version, meaning it now uses the newest technology in voice picking, Android radio frequency, and more. In the past year, DHL Supply Chain also began using DHL’s SmartOps platform, which tracks observations, productivity, and reporting in real-time.

"This expansion comes on the heels of completing our ninth year of partnering with NHLC, and since year one, we have been hyper-focused on improving our operations and efficiency. This success is also possible thanks to the relationship we have fostered with the New Hampshire Wine and Spirits Broker Association," said Patrick Kerns, General Manager, DHL Supply Chain. "Yesterday, after we packed our final order, inventory stood at 1.25 million cases, the most we've had in the building, so this expansion is not only needed but will provide an opportunity for our strategic partnership to reach new horizons."

In recent years, NHLC was recognized by StateWays Magazine for its innovative partnership with DHL Supply Chain. StateWays Magazine, a nationwide magazine devoted to issues and subjects impacting the Control State System, honored DHL Supply Chain’s state-of-the-art distribution center as “Best Warehouse Innovation,” recognizing its recent building improvements and upgrades.

Caption: DHL Supply Chain broke ground on a 27,000-square-foot expansion of its distribution center in Bow, which houses products sold in New Hampshire’s 67 NH Liquor & Wine Outlet locations and by more than 6,200 licensees across the state. NHLC and DHL Supply Chain celebrated the expansion earlier today with a groundbreaking ceremony. Pictured above (left to right) is M.S. Walker Sales Manager Annie Kenney, ARCO National Senior Project Manager John Dias, ARCO National Project Manager Cassie Norton, NHLC Chief Marketing Officer Lorrie Piper, Horizon Beverage President Joe LaRocca, NHLC Chairman Joseph Mollica, DHL Supply Chain General Manager Patrick Kerns, NHLC Deputy Commissioner Nicole Brassard-Jordan, DHL Supply Chain General Manager Greg Featherson, Martignetti Companies-Northern New England Executive Vice President D. Dean Williams, Southern Glazer’s Wine and Spirits of New England Vice President and General Manager Ryan DeVecchio, and Pine State Trading Co. Director of Sales and Marketing Joe Ricci.

This press release was produced by NHLC. The views expressed here are the author's own.