A 20% increase in backlist SKUs over the last two years, to around 20,000 (about half of which are part of the 'Star System'), is behind Diamond's recent addition of a new 47,000 square foot facility to its Memphis, Tennessee operation for the specific purpose of packing new products. That will free up the full 270,000 square feet of the existing location to handle backlist products.
Reorders are continuing to grow as a percentage of Diamond's overall sales, according to Diamond VP--Sales and Marketing Roger Fletcher. The leasing of a second warehouse dedicated to increasing the company's backlist capability will enable the company to better service the rising popularity of longer-lived SKUs such as graphic novels.
The new facility will mean no large-scale staffing changes--the same crews will pack the same books.
Diamond Memphis Distribution Center Regional Manager Shawn Hamrick will continue to oversee operations at the main Memphis facility, while Memphis Distribution Center Regional Manager Debby Salvatore will be in charge of the new facility, which opened September 26th. Hamrick and Salvatore will oversee a workforce of 250, which has grown by 25% over the past couple of years.