Diamond to Close Los Angeles Distribution Center in March, 2011

On December 7, Diamond Comic Distributors announced that, after much consideration, it will close its Los Angeles Distribution Center in March, 2011.

Los Angeles customers will receive the last shipments picked and packed from this facility on January 5, 2011. Beginning the following week – the first week of the new Day-Early Delivery program – shipments will originate from Diamond’s Olive Branch, Mississippi Distribution Center.

“This decision was not an easy one to make,” Diamond President & CEO Steve Geppi said, “and we recognize that change of this sort is potentially concerning to our customers. However, with our lease on the L.A. facility set to expire, and with our capacity for growth in Olive Branch, we determined the timing was right to consolidate operations. “


For more details on this change, please read the following information carefully:

PICK-UP CUSTOMERS

There will be minimal disruption to current pick-up activities and procedures. Customers who pick up their shipments at the Los Angeles facility will continue to do so through March. After that time, pick-up will be available at a nearby facility. (We will announce more details as to the pick-up point and its location in the near future.) At this time, we do not plan to charge pick-up customers for this service. Note that pick-up customers will begin receiving freight-prepaid ARS tags to return damages and overages to Olive Branch. Following the transition, customers should also send Authorized Returns to Olive Branch.

UPS CUSTOMERS

Customers currently serviced via UPS will continue to be serviced by UPS. Some shipments will be routed through its Los Angeles hub, while others will be routed through its Salt Lake City, UT, hub. Customers whose shipments are routed through Salt Lake City may experience a minimal decrease or increase in their freight charges. There are no plans to charge West Coast customers for transporting shipments from Olive Branch to the Los Angeles, or Salt Lake City UPS hubs.

TRUCK CUSTOMERS

Customers who receive their shipments via truck will experience no changes.

INTERNATIONAL CUSTOMERS

Shipments for international customers serviced by Los Angeles may be switched to fly out of Chicago O’Hare rather than LAX if Chicago provides more lift for the same price. We will be contacting international customers individually to discuss arrangements.

REORDERS

While Diamond will no longer maintain physical inventory on the West Coast, we will continue to offer both reship and direct ship reorder options, including 2-day delivery of qualifying orders at regular UPS ground rates. The cutoff time for placing reship (pre-packed) reorders with the Olive Branch Distribution Center is Thursday @ 6:00 p.m. ET, for delivery with new product shipments the week after next.

INVENTORY

Sale pricing will be offered on select Los Angeles inventory. Details will be announced soon.


To help oversee this transition, and to provide additional management expertise in Olive Branch, longtime Diamond Regional Manager James Nash will be moving to the Olive Branch facility. Additionally, Diamond plans to employ several long-time Los Angeles employees in L.A. through the first quarter of 2011, and the staff has been encouraged to apply for positions in Olive Branch.

Please Note: The hours and contact information for regular Diamond Customer Service Representatives at Diamond’s Home Office will be unchanged.


“We are very confident that our customers will continue to receive the high level of service they have come to expect from Diamond,” Geppi added. “As a point of note, based on our quality control monitoring of shortages, damages, and overages, the Olive Branch facility consistently scores on par with Los Angeles. The Olive Branch staff is dedicated to providing the best possible service to help our customers’ businesses prosper, and we look forward to delivering that service in the years ahead.”

Retailers with additional questions regarding this announcement should contact their Diamond Customer Service Representative.