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ground breakers: who's building a new DC?

  • The home-improvement retail chain Lowe's will invest approximately $150 million to expand its distribution network. The company just broke ground on a new regional distribution center in Lebanon, Ore., that will feature five miles of conveyor and employ 400 workers within two years. Lowe's will also expand three existing facilities in Valdosta, Ga.; Statesville, N.C.; and North Vernon, Ind. Lowe's says the new projects will allow it to supply its growing store base nationwide as well as handle additional products, such as major appliances, more efficiently.
  • Lego, the well-known Danish toymaker, is closing a factory in Switzerland and five distribution centers in France, Germany and Denmark and moving all those operations to the Czech Republic. The company cited high costs in Switzerland as the main reason for transferring production and distribution to Eastern Europe. A new distribution center in Prague, scheduled to open in 2006, will be operated by DHL Solutions.
  • Bombardier Aerospace has opened a new 238,000-square-foot distribution center at O'Hare International Airport in Chicago. The facility will handle distribution for the company's aircraft parts and will house 120,000 SKUs. Its airport location allows fast service to planes needing immediate parts.
  • Cousins Properties Inc., a real estate developer based in Atlanta, has filed plans with the Georgia Department of Community Affairs to develop 110 acres off Highway 129 in Jackson County as an industrial and distribution park. The company also plans to develop an adjacent tract as a retail center.

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Economic activity in the logistics industry expanded in January, growing at its fastest clip in more than two years, according to the latest Logistics Managers’ Index (LMI) report, released this week.

The LMI jumped nearly five points from December to a reading of 62, reflecting continued steady growth in the U.S. economy along with faster-than-expected inventory growth across the sector as retailers, wholesalers, and manufacturers attempted to manage the uncertainty of tariffs and a changing regulatory environment. The January reading represented the fastest rate of expansion since June 2022, the LMI researchers said.

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Disrupting the furniture supply chain: An interview with Jay Rogers

Disrupting the furniture supply chain: An interview with Jay Rogers

As commodities go, furniture presents its share of manufacturing and distribution challenges. For one thing, it's bulky. Second, its main components—wood and cloth—are easily damaged in transit. Third, much of it is manufactured overseas, making for some very long supply chains with all the associated risks. And finally, completed pieces can sit on the showroom floor for weeks or months, tying up inventory dollars and valuable retail space.

In other words, the furniture market is ripe for disruption. And John "Jay" Rogers wants to be the catalyst. In 2022, he cofounded a company that takes a whole new approach to furniture manufacturing—one that leverages the power of 3D printing and robotics. Rogers serves as CEO of that company, Haddy, which essentially aims to transform how furniture—and all elements of the "built environment"—are designed, manufactured, distributed, and, ultimately, recycled.

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Gartner: GenAI tools create anxiety among employees

Generative AI (GenAI) is being deployed by 72% of supply chain organizations, but most are experiencing just middling results for productivity and ROI, according to a survey by Gartner, Inc.

That’s because productivity gains from the use of GenAI for individual, desk-based workers are not translating to greater team-level productivity. Additionally, the deployment of GenAI tools is increasing anxiety among many employees, providing a dampening effect on their productivity, Gartner found.

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The German third party logistics provider (3PL) Arvato this week acquired the U.S.-headquartered companies Carbel LLC and United Customs Services, saying the move would grow its client base, particularly in the fashion, beauty, and lifestyle segments.

According to Arvato, it made the move in order to better serve the U.S. e-commerce sector, which has experienced high growth rates in recent years and is expected to grow year-on-year by 5% within the next five years.

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The top worries that supply chain leaders hope to address with new innovations this year include inflationary concerns (68%) and labor shortages (50%), according to a survey on innovation from the third-party logistics provider (3PL) Kenco.

And many of them will have a budget to do it, since 51% of supply chain professionals with existing innovation budgets saw an increase earmarked for 2025, suggesting an even greater emphasis on investing in new technologies to meet rising demand, Kenco said in its “2025 Supply Chain Innovation” survey.

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