WD‑40 Company is retooling its global supply chain strategy by optimizing its distribution center (DC) network to address rising delivery costs and bolster operational efficiency. According to a recent report by Supply Chain Dive, the move includes reassessing DC locations, leveraging outsourced third-party logistics (3PL) partners, and reevaluating sourcing strategies—all designed to enhance margins without heavy capital investment.
WD‑40’s leadership described the effort as part of a broader transformation aimed at reducing logistics complexity while improving service levels across its global footprint.
Outsourcing Provides Flexibility Without Asset Burden
By relying on 3PL providers to operate its distribution centers, WD‑40 gains agility without tying up capital in physical infrastructure. This model allows the company to shift logistics operations closer to demand centers or ports, shortening delivery times and reducing freight costs—particularly important in today’s volatile transportation market.
The company did not disclose how many distribution centers might be relocated or consolidated, but signaled that U.S. and international logistics operations are both under review.
Sourcing Optimization Also in Focus
Beyond DC placement, WD‑40 is scrutinizing its global sourcing practices to further reduce delivery and product costs. The company indicated it is considering changes in how it sources raw materials and finished goods, with an eye toward improving supply continuity and cost competitiveness.
These strategic adjustments come amid ongoing macroeconomic pressures, including higher labor and transportation costs. WD‑40 is proactively seeking supply chain savings to protect gross margins while maintaining product availability and service levels.
Distribution Strategy Tied to Broader Growth Goals
This distribution revamp supports WD‑40’s long-term financial objectives, particularly its focus on gross margin expansion and operational discipline. In a global environment where consumer demand remains steady but cost pressures persist, WD‑40 is looking to logistics efficiencies as a lever for profitable growth.
By optimizing both where and how it stores and ships its products, the company is positioning itself to better meet customer expectations across retail and industrial channels—while containing costs in a competitive environment.
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