ScanSource to move distribution center, increase capacity 60%

Thursday, May 3, 2007

GREENVILLE, S.C.--ScanSource Inc., parent company of ScanSource Security Distribution and four other distribution businesses, announced this week it will relocate its North American distribution center from Memphis, Tenn., to Southaven, Miss. The move will be completed by the first quarter of 2008 and result in 240,000 extra square feet of space, with the option to add another 147,000 square feet as the company grows.
ScanSource operates with a different model than many distributors in the security space, as it has no retail locations and ships all products for all of its distribution businesses from a single location.
It's still unclear what portion of the new center will be devoted to the security division. Chief executive officer Mike Baur did point, however, to "record results" for the ScanSource Security division in a recent earnings report that saw a sales increase of 21 percent overall.
Melissa Andrews, public relations manager for ScanSource Inc., said dealers "won't notice a change" as the company moves to the new space, though the new location is closer to the airport and might result in slightly quicker delivery times.
The biggest positive change dealers will notice once the move is complete, she said, is that there will be "more space for integration," which will allow for an increased capacity to "put total solutions together and drop ship them directly to customers, or we can blind ship it right to the end user and make it seem like it's from the dealer."
ScanSource has signed a 10-year lease for the new space with Industrial Developments International. The lease is still subject to the approval of economic development incentives from the state of Mississippi, but Andrews said the company doesn't anticipate any hang-ups.