The Memphis, Tenn., metro is one of the logistical centers in the world, thanks to its location on the Mississippi River and its position as the corporate home of FedEx Corp.
The supply chain company continues to expand its presence in the Memphis metro.
As part of a $1.8 billion network expansion plan to nearly double average daily hub package volume capacity in North America, FedEx Ground, an operating unit of FedEx, chose a 93-acre site in Olive Branch, Miss., in the metro as the location for the fourth of nine new package distribution hubs to be constructed during the next six years.
The 330,000 square foot complex, which will be located in the DeSoto Distribution Center, will be the second major FedEx Ground sortation facility in the Memphis metro.
The hub will feature the latest automated material handling technology designed to process 22,500 packages per hour and will have a work force of nearly 500, including 60 full-time and more than 300 part-time employees. FedEx hopes to have the new facility in operation by April 2006.
“Enhancing our distribution capability in the Mid-South area is an important step in our ongoing efforts to increase the size, speed and efficiency of our network,” said Daniel J. Sullivan, president and CEO of FedEx Ground. “This facility will complement our existing Memphis operations to better serve a growing regional customer base and also will act as a gateway for shipments destined for other parts of the country.”
To further meet the needs of shippers in the region, the company’s current hub in the Memphis metro underwent a $23 million, 47,000 square foot expansion, which was completed last year.
The project included the installation of the most advanced material handling systems, increased the number of pickup and delivery van positions from 40 to 72, and brought the facility’s total size to 233,000 square feet.
The Olive Branch site was chosen because of its complementary distance from the expanded Memphis operation, its proximity to customers’ distribution centers and major highways, and a strong local labor pool.
Three additional FedEx Ground hubs are slated to open this year in the metro areas of Dallas, Cincinnati and Hagerstown, Md.
Site work for the Olive Branch facility is expected to begin in April.
FedEx Partners With University of Memphis
FedEx has also partnered with the University of Memphis in a public-private collaboration that aims to teach supply chain management (SCM) and other disciplines.
Two of the ten research-focused centers at the 92,000 square foot, state-of-the-art FedEx Institute of Technology are SCM-oriented — the FedEx Center for Supply Chain Management and the Center for New Generation Transportation.
The FedEx Center for Supply Chain Management will focus on certification programs for managers and executives, teaching them how to make SCM-relevant processes work better, faster and cheaper, said Jim Phillips, chairman and executive director of the FedEx Institute of Technology.
Undergraduate and graduate students in supply chain management will also use the Institute’s facilities, he added.
“Our program is focused on reducing cycle times through more intelligent distribution,” Phillips said, noting the importance of product aggregation and step-by-step procurement, manufacturing and distribution tracking through such technologies as radio frequency identification.
The Center for New Generation Transportation will partner with progressive companies to create a think tank that keeps innovation moving in trucking, aerospace and personal transportation.
The company expects the Institute of Technology to develop a highly skilled work force pool. FedEx will work with the institute’s research teams and other companies on business standards and new technologies.
— Ken Krizner, Managing Editor
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