WD-40 eyes distribution center optimization to cut delivery costs

Group 1 - The company has established a strategic framework aimed at achieving operational excellence in its supply chain, which has been crucial for expanding gross margins through cost-reduction initiatives [3] - In the first quarter, the company achieved a global on-time performance rate of 97.6% while increasing production capacity to support key business objectives [4] - The company is re-evaluating its sourcing strategies globally, particularly for steel cans, and is currently assessing the sourcing of its raw materials [4][5] Group 2 - The supply chain team is focused on engaging key suppliers and advancing responsible sourcing, with the first sustainability assessment among Tier 1 suppliers conducted in 2024 [5] - The company has decentralized its supply chain to offset tariffs and has strengthened global partnerships with key suppliers, leading to improved efficiencies and cost savings [6] - The company is evaluating the locations of its distribution centers to reduce delivery miles, which will involve structural changes but will not significantly impact capital expenses due to outsourcing to third-party logistics providers [8]