Ferguson, a major plumbing and heating materials distributor, is ramping up its delivery capabilities with plans to add three smaller distribution centers across North America in the next two years. This move comes as competition in the construction-supplies sector intensifies, with CEO Kevin Murphy noting to WSJ the contractors' growing demand for fast shipping, influenced by their experiences in the consumer realm.
The restructuring of Ferguson's supply chain involves opening smaller, highly automated warehouses closer to population centers to fulfill orders with tighter turnarounds. These new market distribution centers aim to bridge the gap between the company's physical stores and larger regional warehouses, catering to contractors' needs for rapid access to materials.
The trend towards speedy delivery in the construction industry reflects broader consumer expectations set by retail giants like Amazon and Walmart. Ferguson's initiative aligns with this shift, as it seeks to meet the evolving demands of its industrial customers while optimizing its supply chain efficiency.
Additionally, competitors in the construction materials sector are also making strategic moves to capture market share. Home Depot's acquisition of roofing distributor SRS Distribution underscore the industry's focus on targeting professionals in construction and remodeling.
