How Metro Supply Chain helped a leading specialty retailer build a more scalable, efficient supply chain

Author: Emily O'Gorman, Marketing Manager, Metro Supply Chain 

Date updated: November 10, 2026

Key takeaways:

• Metro Supply Chain helped a leading specialty retailer transition from a fragmented Direct Store Delivery (DSD) model to a centralized Distribution Centre Managed (DCM) network built for scale
• Reduced weekly store deliveries from more than 10 to three or four, simplifying store operations and labour planning
• Achieved 99% on-time delivery performance, improving service reliability across the Canadian network
• Implemented voice-pick technology, reducing cost per unit by 35%
• Supported the retailer in more than tripling its Canadian store count while maintaining strong peak performance and hitting all customer SLA targets

The challenge

A leading North American specialty retailer had outgrown its Canadian supply chain model. Its legacy Direct Store Delivery approach created too many weekly store deliveries, uneven labour planning and limited visibility into inbound shipments. These issues reduced store productivity, increased complexity and made it harder to support growth.

The retailer needed a partner that could simplify operations, improve control and build a supply chain designed to scale. Metro Supply Chain helped the retailer move from a DSD model to a Distribution Centre Managed model, creating a national network that was more efficient and predictable and better able to support store growth, product complexity and changing customer expectations.

The solution:

Building a scalable logistics foundation

Metro Supply Chain initially supported the retailer through a transportation cross-dock solution that consolidated cross-border shipments from the customer’s distribution centre into efficient store delivery schedules across Eastern Canada.

As volumes and requirements increased, the model evolved into a combination of cross-dock and warehousing operations. Approximately 50,000 sq. ft. of warehouse space was established across two distribution centres in Central and Western Canada, providing national coverage while supporting a limited initial SKU assortment.

Metro Supply Chain also redesigned inbound transportation to reduce variability, improve visibility and create a more controlled cost structure. This included consolidating inbound vendors across Canada through Metro Supply Chain’s national transportation network, introducing clear communication protocols, negotiating cartage allowances and establishing scheduled pickups.

Additionally, Metro Supply Chain allocated network operating costs back to vendor purchase orders to support more accurate cost of goods sold calculations. This created a stronger transportation foundation, with better visibility, more consistent execution and a clearer understanding of total landed costs.

Centralizing distribution to support retail growth

To support long-term growth in Canada, Metro Supply Chain implemented a multi-year strategy to centralize distribution, expand capacity and improve inventory control. This included integrating full Electronic Data Interchange (EDI)/Advanced Shipping Notice (ASN) processes to enable multi-drop store runs and improve inventory accuracy and launching two state-of-the-art 300,000 sq. ft. brownfield distribution centres (DCs) in Central and Western Canada.

The result was a centralized network that could support a broader SKU mix, improve service consistency and keep pace with the retailer’s growth. The shift from DSD to DCM also reduced weekly store deliveries from more than 10 to three or four, helping simplify store operations and improve labour planning.

Driving efficiency through continuous improvement

As the network matured, Metro Supply Chain continued to identify opportunities to improve performance and reduce operating costs. One key improvement was the implementation of voice-pick technology, which helped reduce cost per unit by 35% while supporting higher productivity and more consistent execution.

Through ongoing optimization, Metro Supply Chain expanded the DC’s SKU profile, supported strong peak performance and maintained 99% on-time delivery performance across the Canadian network.

The results

How Metro Supply Chain supported long-term growth

Over more than 15 years, Metro Supply Chain has helped this major specialty retailer transform a fragmented DSD network into a centralized, high-performing supply chain. The partnership helped the retailer more than triple its Canadian store count while maintaining strong service levels and hitting all customer SLA targets.

The partnership shows how the right logistics strategy can improve service, reduce complexity and create the capacity needed for long-term retail growth.