Question-and-Answer Session
Operator
(Operator Instruction) And we'll take our first question today from Jason Whitmer of Cleveland Research Company.
Jason Whitmer - Cleveland Research Company
Hi good morning, good quarter.
Rick Schnieders
Good morning, thank you.
Jason Whitmer - Cleveland Research Company
Rick, can you help us with maybe a review of your 45 strategic initiatives -- you obviously referred to them multiple times, or maybe with where you’re at within your own progress report, where you expect to be maybe within the next 12 months, 12 to 24 months? Maybe one of the most important leverage for your company going forward? Thanks
Rick Schnieders
Yeah, thank you Jason. In regard, and I will ask my colleagues to help me here, but in regard to the major initiatives, we certainly are pleased with the progress we have made with the RDC. We are at full ramp to the North East and operations there are going very well.
The construction in Alachua, Florida is also going along very well. So, we are pleased with the RDC and two other important parts of the National supply chain. Our DPR -- the Demand, Planning, Replenishment system which is been rolled out independently RDC to other operating companies -- that's going well.
And we are particularly pleased with the third piece of the national supply chain and that's TMS, the Transportation Management System, which is now in place for all operating companies across the system.
The second major initiative would be sourcing, and sourcing is going along very well. We are completing the second tranche, we had our first small kind of pilot in sourcing that represented about six product categories and $300 million of spent. We are now in the second tranche and we are very pleased with the progress we are making there. Still lots of work to do, we are still adjusted at the very beginning in that process also.
Integrated delivery, really kind of code name for optimizing our warehouse and delivery operations Ken alluded in his comments to the effort to reduce our miles driven, and that took a lot of work, but is going very well in the initial stages.
And finally, I would mention our demand, the work we are doing in demand around the customer and understanding better what our customers needs are and making sure that we have the service offerings that match up to those needs. So those are the major initiatives Jason.
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