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Arvato SCM Solutions opens new distribution center in Louisville

Published 27 April 2017

Arvato SCM Solutions has opened a new 650,000-square-foot distribution center in the Louisville area following its latest growth and expansion.

The center is located within 10 miles of the company's original 160,000-square-foot multi-client and multi-industry distribution center, which was opened in 2005. With the new site, the international logistics and fulfillment specialist quadruples its local logistics capacities.

"We are excited to add this new distribution center in Louisville. Louisville is an anchor location for Arvato SCM's presence in the United States. Expanding our footprint in this centrally located logistics hub will allow us to continue our growth by servicing clients with multi-channel distribution and fulfillment services," says Dominik Dittrich, EVP of Supply Chain Management & e-Commerce, North America & Brazil - Arvato SCM Solutions.

As of today, the new location is expected to hire approximately 225 employees in its first year.

To speed up logistics processes, the new distribution center is equipped with 100 dock doors for inbound and outbound goods, 30,000 pallet locations and a conveyor system, enabling processing of up to 50,000 parcels a day. Arvato SCM Solutions will initially take over logistics and fulfillment services for a customer in the high-tech industry. The provided services include domestic and international distribution to customer-owned stores, large retailers and distributors; the handling of e-commerce business including returns management, postponement and kitting; and value-added services.

Louisville was chosen due to its advantageous geographical location and great infrastructure for air and ground shipping. Major carrier investments are ongoing in Louisville, in response to increased e-commerce and traditional retail package volume. The new distribution center is in close proximity to different hubs, allowing for late cutoff times. "The site came out as the best location following a center of gravity analysis, where we analyzed customer data for servicing the East Coast and part of the central United States," explains Dittrich.

In addition to the growth Arvato SCM Solutions is currently experiencing in Louisville, the company is also in the process of opening up a 550,000-square-foot distribution center in Ontario, California.

"The expansion of our supply chain network in the United States by investing in distribution centers in key geographies is part of our overall strategy to grow our e-commerce and supply chain offerings in the United States," says Dittrich.

The company also operates multi-client and multi-industry distribution centers in Pleasant Prairie, Wisconsin, and Valencia, California.

Source: Company Press Release