From 40,000 sq. ft. to 8,000: How an International Supplier Streamlined Canadian Operations

Reducing Excess Warehouse Space and Simplifying Logistics Without Disrupting Service

Project Overview

An international plumbing supply company was operating in Canada with a large warehouse footprint. After losing one of its largest clients, the business was left with excess capacity and rising operational costs.

McKenna Logistics Centres partnered with the company to transition its Canadian operations into a more efficient model—reducing required warehouse space, simplifying labour, and maintaining service across dealers, installers, and direct customers.

Key Takeaways

✓ Reduced warehouse space from 40,000 sq. ft. to approximately 8,000 sq. ft.
✓ Transition completed within one month of contract signing
✓ Eliminated need for a dedicated Canadian warehouse lease
✓ Removed requirement for internal operations staff in Canada
✓ Maintained service across dealer, installer, and direct customer channels

Looking for similar results? See how our warehousing and distribution solutions adapt to your business needs.

The Challenge

Excess Capacity Following Loss of a Major Client

The company had been operating out of a 40,000 sq. ft. facility in Canada. When a significant portion of its business was lost, that footprint quickly became a liability.

They were left managing:

• Substantial unused warehouse space
• Ongoing lease and labour costs
• A fragmented operation that no longer reflected current demand 

Despite the reduction in volume, the operational requirements remained:

The question wasn’t whether to change. It was how to do it without disrupting business.

McKenna Logistics Centres’ Approach

A Practical Transition to a Leaner Operating Model

McKenna Logistics Centres worked closely with the client to understand inventory, workflows, and customer requirements. The focus was straightforward: remove inefficiencies without compromising service.

Right-Sizing the Operation

McKenna Logistics Centres identified what actually needed to be in-market:

• Active SKUs
• Essential parts tied to ongoing sales and warranty support

By transitioning only what was required, the operation was consolidated into approximately 8,000 sq. ft., a significant reduction that better aligned with current demand.

See how McKenna Logistics Centres helps improve inventory visibility and control.

Executing a Tight Transition Timeline

Speed mattered. The client needed continuity without a prolonged overlap of costs. Within a month, the operation was fully up and running under McKenna Logistics’ management.

Replacing Fixed Infrastructure with a Managed Model

McKenna Logistics Centres provided:

• • Dedicated warehouse space
  • Dedicated labour

This gave the client a stable operating environment without the burden of managing a facility or staffing an internal team.

Costs became more predictable. Billing became simpler. Operational oversight shifted to third-party logistics (3PL) experts.

Bringing Structure Through Systems

Technology played a key role in maintaining control and visibility. These systems ensured the client retained visibility without needing to manage the process themselves.

Better visibility starts with better data. Explore how our data solutions provide real-time insight into inventory and shipping.

Supporting Day-to-Day Operations

McKenna Logistics Centres took on full operational responsibility, including:

•  Streamlining pickup processes between company staff, customers and local dealers
• Order fulfillment and shipping
• Freight coordination
• Annual physical inventory counts delivered with minimal variances

As the client’s business evolved, storage space and labour were adjusted to match, avoiding the rigidity of a fixed setup.

The Outcome

A Simpler, More Efficient Canadian Operation

Over the past eight years, the partnership between the international plumbing supplier and McKenna Logistics Centres has evolved into an efficient, cost-effective approach to managing Canadian operations.

What began as a response to excess capacity has become a more flexible, efficient, and sustainable operating model, supported by McKenna Logistics Centres’ attention to detail, operational discipline, and reliable systems.

Client Perspective

“Working with McKenna has been a key factor in maintaining an efficient and reliable operation for our Canadian business. When we needed to transition away from managing our own facility, McKenna provided a flexible and well-organized solution that allowed us to streamline our inventory and logistics processes. Their team has consistently demonstrated strong operational discipline, attention to detail, and excellent customer service for both our internal team and our dealer network. 

Over the past eight years, the partnership has allowed us to simplify our operations and focus our resources on growing our sales in the Canadian market. McKenna’s flexibility, transparency in reporting, and commitment to operational excellence have made them a trusted and valued partner.”

– Eric C. Director of Sales

Why This Matters for Canadian Operations

This case reflects a common operational challenge: when demand shifts, warehouse space and cost structures don’t adjust as quickly.

By consolidating inventory, outsourcing operations, and introducing flexibility, businesses can continue to serve their customers while reducing unnecessary overhead.

Rethinking Your Warehouse Strategy?

Move to a more efficient, flexible logistics

If your current warehouse setup no longer reflects your business needs, it may be time to rethink your strategy.

McKenna Logistics Centres can help you transition to scalable, cost-effective logistics that fits where your business is today.

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