Penguin Random House U.S. CEO Madeline McIntosh announced on November 4 that the publisher will be expanding its network of distribution and fulfillment centers by adding a location in Reno, Nevada. The publisher aims to significantly increase the reach, flexibility, and efficiency of its distribution supply chain across the country by expanding its capabilities to the western U.S.
PRH is assuming operation and management of the Reno-based fulfillment center that is currently leased to Baker & Taylor, which has discontinued its service to retail booksellers. The Reno location will be the third Penguin Random House distribution center in the U.S., joining the publisher's long-standing operations in Westminster, Maryland, and Crawfordsville, Indiana.
“We have discussed having a western fulfillment center for years, and now is the perfect time to make that happen,” said McIntosh. “Creating a western hub in the Penguin Random House supply chain expands our distribution reach from coast to coast, and gives us additional capacity to get more books to more readers even more quickly than we do now.”
In the multi-year agreement signed by PRH, B&T will continue to ship Penguin Random House and Penguin Random House Publisher Services (PRHPS) reorders during the transition of the Reno facility, and on January 1, 2020, Penguin Random House will assume sole operation of the facility.
The new center has 244,000 square feet of warehouse capacity and an established book-fulfillment infrastructure in place and will distribute Penguin Random House titles to a variety of retail customers; it will also distribute titles for Penguin Random House Publisher Services (PRHPS) clients.
Penguin Random House’s leadership team will be working with the local Baker & Taylor teams as the transition plays out. The process will be led by Annette Danek, PRH executive vice president, supply chain, who has overseen the growth and expansion of the Maryland and Indiana facilities.
“We anticipate a seamless changeover,” said Danek. “It is well-established that rapid replenishment is a key element of our customers’ profitability, and we are thrilled to be able to provide this important support through the crucial fall season and beyond without interruption. At the outset, we’ll be focusing on the western states currently serviced out of Reno. Over time, we hope to build capacity for greater flexibility and a wider range of services.”
Danek said her team will continue to assess the facility's hiring needs as the end of the year approaches.