The Musicland Group has chosen Deluxe Media Services to provide warehousing, fulfillment, and returns processing to its 950 stores. Musicland will transition to the new set-up starting in April.

The Musicland Group has chosen Deluxe Media Services to provide warehousing, fulfillment, and returns processing to its 950 stores. Musicland, which is currently obtaining those services from its old warehouse in Franklin, Ind., will transition to the new set-up starting in April.

When Best Buy transferred ownership of Musicland to Sun Capital, it decided to keep the chain's warehouse to service its own stores.

Deluxe, owned by the Rank Organization in Europe, has a distribution center in Pleasant Prairie, Wis., located 30 minutes outside of Chicago.

Musicland chairman Eric Weisman says that in addition to achieving lower operating costs and better control of its supply chain, the chain chose Deluxe Media because of its ability to handle diverse product lines.

Musicland vice chairman Danny Yarbrough directed a senior-level executive team and retained Tompkins Associates, a leading supply chain consultancy, to conduct a search for a third-party logistics provider that would meet Musicland's service requirements.

Deluxe Media has experience with the entertainment software industry, says Yarbrough. "They have been a video distributor for some of the major studios and manufacturers and have the flexibility to adjust to other product areas that we are looking at as we look forward to where our business is going to be," he adds.

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