REI: Walks it like it talks it

I find it inspiring when our System Report focuses on an organization that “walks it like it talks it,” especially when its aspirational mission is truly reflected in its actions, its operations, and its overall business strategy.

Starting on page 18, executive editor Bob Trebilcock takes us inside and around the grounds of outdoor retailer REI’s 393,000-square-foot, $73-million distribution center in Goodyear, Ariz., a facility that neatly embodies not only its commitment to the environment and the residents in the surrounding community, but is also keenly focused on keeping the company’s operations and bottom line strong and viable.

“I first learned about REI’s new facility a couple of years ago from someone on the design team, who said: ‘It’s unlike anything I’ve ever worked on,’” says Trebilcock. “Having talked to a number of individuals involved in making REI’s concept a reality, I had to agree.”

Knowing full well they needed to expand their supply chain capacity to meet increasing direct-to-consumer orders, REI completed an exhaustive network study that suggested a new DC in the Southwest would improve same-day and two-day service in the region—as well as help them leverage ground services to protect their carbon footprint. Goodyear, just west of Phoenix, was the ideal location.

The supply chain and operations team stuck to four design principles: The facility had to connect to the REI brand; help build on the REI culture/values; differentiate in the community through stewardship; and be built to the highest, currently achievable standard of sustainability.

After reading through Trebilcock’s deft description of the trails that lead from the parking lot to the facility, the indoor environs that reflect the local setting, and the rooftop solar array that provides the power, it’s clear that REI had done a notable job adhering to its sustainability-base principles.

“In fact, the building is the first distribution facility in the United States to earn LEED Platinum certification and Net Zero Energy,” says Trebilcock. “Yet, as the REI executives made clear, they weren’t just hugging trees—there was ROI associated with the choices they made.”

In fact, it could be said that REI’s order fulfillment process is at the forefront of a trend we’ve been tracking in omni-channel operations. “It’s similar to what Destination Maternity is doing, in that the design allows the facility to fill store, wholesale and e-commerce orders with very different profiles from one workstation,” says Trebilcock. “But what makes REI unique is the way they brought together pick-to-tote processes with a pocket sorter at one workstation.”

This innovative application of cutting-edge materials handling certainly matches REI’s level of commitment to it’s sustainable mission—and clearly sets a new bar for other companies to whom sustainability is part of their brand.

“Think about it,” adds Trebilcock. “They brought together brand recognition, sustainability, employee and community engagement, and leading edge materials handling technology in one facility. It’s a story as unique as the building, and one certainly worth telling.”