Saddle Creek to Build Cross-Dock Operation in Florida

Lakeland, Fla., Feb. 27, 2007 — Saddle Creek Corp. announced today that the company will expand its current campus operations in Lakeland, Fla. The company has started construction of a new 98,600-square-foot, high-volume cross-dock facility. The facility will be utilized to provide distribution services for one of Saddle Creek's key accounts as well as potential new business in the future.

The decision to design and build a comprehensive cross-dock facility is mainly due to a fresh product manufacturer's increased growth in volume and projected double-digit growth in the coming years. The manufacturer has been using an existing Saddle Creek facility to handle its products while determining specific requirements and the volume of activity expected at the new facility.

"We are uniquely positioned to provide our customer with a flexible solution that will not only meet their requirements today but also in the coming years," said Tom Patterson, senior vice president, warehouse operations. "Designing the facility exclusively as a true cross-dock tailored to meet the customer's requirements will result in labor productivity gains of approximately 15 to 20 percent. More importantly, it provides the ability to accommodate our customer's projected business growth."

The new facility is expected to be approximately 40 percent larger than the customer will need initially. As a 3PL, Saddle Creek has the ability to use the remaining portion of the cross-dock building for other business until this customer has need for additional space in the facility. "The market for industrial space in Lakeland is so tight and expensive that building some space of our own makes sense now," said Bruce Abels, president of Saddle Creek Corp.

Construction is projected to be complete in August, 2007. A team of 27 Saddle Creek associates will run the operation 24 hours a day, five days a week. Approximately 30 trucks will be required for delivery.

"During the past few years, we have seen an increased interest in the use of cross-dock operations - especially among Florida retail companies," said Abels. "According to our recent survey of food logistics industry executives*, nearly 43 percent of respondents have increased cross-docking practices in the past five years. This is due in large part to the change in hours of service within the transportation industry and rising LTL transportation rates for inbound moves to Florida. Building this new facility will allow us to grow with our current customers and offer an important service to others in the marketplace. It's one more example of how Saddle Creek does Whatever It Takes to create value for our customers."

* To download a copy of the 2007 Food Logistics Industry Report, go to http://www.saddlecrk.com/fl

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About Saddle Creek Corp.

Saddle Creek Corp., headquartered in Lakeland, Fla., provides integrated warehousing, transportation, and value-added services nationwide. For more information, visit www.saddlecrk.com.

 

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Contact:

Stephen G. Cook
Vice President,
Saddle Creek Corporation
Telephone: 863/668-4316
E-Mail: stephen.cook@saddlecrk.com

Brian Everett
Senior Partner,
MindShare Strategies, Inc.
Telephone: 952/442-5638, ext. 201
E-Mail: media@mindshare.bz


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