Arvato Supply Chain Solutions Opens New Location in Memphis

Arvato Supply Chain Solutions is expanding its network in the USA and will operate a new location in Memphis, Tennessee, for its healthcare business. The distribution center, expanded to approximately 30,000 square meters, was officially opened with the cutting of the ribbon. A new customer at the location is one of the world’s leading medical technology companies, for which Arvato will handle the complete logistics and distribution in the USA.

(Gütersloh/Memphis) “The project supports our growth strategy in the healthcare market and enables us to enter the US market with one of the leading companies in medical technology,” says Dr. Thorsten Winkelmann, Managing Director of Arvato Supply Chain Solutions Healthcare. The US market for medical devices is considered attractive with good growth opportunities, as it accounts for more than 40 percent of the global medical technology market. The new location is ideal for expanding the healthcare business and for the customer’s central warehouse strategy to ensure fast delivery. The FedEx World Hub and the Memphis International Airport, the second largest cargo airport in the world after Hong Kong, are in close proximity to the new distribution center. “With the centralization project that we have already implemented for this customer in Europe, the company can now rely on a global multi-warehouse solution – just as we offer to pharmaceutical companies in Europe,” explains Dr. Thorsten Winkelmann.

Consolidation of Two Previous Locations

In Memphis, Arvato is consolidating the logistics of medical products previously handled at two separate locations under one roof from the three business areas of the customer. After expanding the storage space from 20,000 to a total of approximately 30,000 square meters, the implementation of intralogistics followed. A modern AutoStore system with a capacity of 50,000 container spaces and 52 robots was installed as the centerpiece of warehouse automation – a system that Arvato is already using at other locations to increase process efficiency in the warehouse. “In the Memphis logistics region, however, our AutoStore is the first automation solution of its kind and generates corresponding interest in the market,” says Stephan Hackert, Vice President and responsible for the healthcare sector of Arvato in the USA. The products of the medical technology customer are very well suited for the container storage of the AutoStore system, which meets all requirements for a flexible automatic storage and picking solution. Additionally, it is expandable, features productive and easy-to-use goods-to-person stations, and operates extremely energy-efficiently. “With the implementation of this project and the official opening, we have succeeded in creating several hundred new jobs,” explains Stephan Hackert.

Opened the new location in Memphis (from left to right): Thorsten Winkelmann, Ted Townsend, Keith Oteri, Mitat Aydindag, Stephan Hackert

Flagship Project with Radiance

The commissioning of the state-of-the-art distribution center was simultaneously a flagship project for Arvato with radiance for other companies. Memphis is considered a hotspot where numerous companies from the medical technology sector have settled. Several research and development facilities, production and sales sites of Arvato customers are also located there and in the surrounding area – from the healthcare industry as well as from the consumer products and tech sectors. Mitat Aydindag, Managing Director of Arvato Supply Chain Solutions USA: “These are good conditions to further drive and secure the organic growth of Arvato Supply Chain Solutions in the USA.” Arvato is not only focusing on taking over warehousing and transport. Dr. Thorsten Winkelmann: “In the USA, we also want to offer our end-to-end supply chain solutions, such as the management of orthopedic rental devices. The goal is also to become active in other segments of healthcare, such as dietary supplements, and to serve new channels – with a particular focus on direct delivery to patients.”

Photos: © Arvato Supply Chain Solutions