From our distribution center, we deliver 90% of the products we sell,
supply most of the paper and cleaning items we use, and provide
nearly all of our advertising signage. Economies of scale allow us
to lower unit costs by buying products in mass quantities. We offer
nearly 60% of our inventory in individual packages rather than by
the case. This option reduces carrying costs and outdated products
and lets store managers replenish stock with exactly what they need.
We can quantify our results. Over the last fiscal year, we saved
.3 cents per gallon when we delivered gasoline in Casey’s
transports, operated the distribution center for less than 2%
of sales, and averaged just over $3 million in sales per full-time
warehouse employee. The industry average for convenience
store suppliers was just under $1.5 million.
We added 100,000 square feet of warehouse space and 20,000
square feet of office space to our distribution center, giving us
the capacity to serve at least 1,000 more stores. The distinctive
addition is a visible mark of our commitment to continuing
growth and increasing the advantages of our vertical integration.
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