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ground breakers: who's building a new DC?

  • Frozen Food Express Industries Inc. has opened a new temperature-controlled service center in Burlington, N.J. The 80,000-square-foot warehousing and distribution center includes freezer, cooler, and dry storage space.
  • Smith Drug Co. has opened a $15 million, 109,000- square-foot distribution center in Valdosta, Ga. The new center, which will employ 35 to 40 full-time workers, will serve customers in Georgia and Florida.
  • Kansas City Southern and Wallenius Wilhelmsen Logistics (WWL) have agreed to establish a finished-vehicle distribution center for Nissan in Houston, Texas. The new facility will allow WWL to provide new-vehicle distribution service to Texas, Louisiana, and Oklahoma from a single site.
  • ProLogis has signed two new lease agreements for distribution space at ProLogis Parc Zama I in Japan. The transactions, totaling 200,000 square feet, include leases with SEI Logistics Network Co., a major Japanese third-party logistics service provider, and Kawataki Co., a Japanese household goods company.
  • Nexus Distribution, a third-party logistics service provider, has expanded its presence in Bedford Park., Ill., by opening its third distribution center in that community. The new facility, which occupies 306,552 square feet of space, features direct access to the adjacent CSX intermodal yard. It is also directly accessible to the recently constructed Chicago Land Bridge, a half-mile-long private roadway that can be used to transport heavy containers from the Nexus facilities to the CSX yard.

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Logistics economy picked up speed in January

Logistics Managers' Index

Logistics economy picked up speed in January

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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German 3PL Arvato acquires two U.S. logistics firms

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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Supply chain pros are wary of inflation and labor woes

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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