Dive Brief:
- United Natural Foods Inc. is increasing its network capacity in the mid-Atlantic region with a leased distribution center in Manchester, Pennsylvania.
- The 1.3-million-square-foot, temperature-controlled facility is currently under construction and is expected to be operational in the next 15 months, according to a March 30 news release.
- “Similar to several other UNFI facilities, this new distribution center will implement technology and automation solutions designed to enable greater network capacity, scalability, and profitability,” COO Erin Horvath said in a statement.
Dive Insight:
UNFI says expanding and further automating its distribution network will both improve the customer experience and strengthen its overall network.
“Leasing this facility allows us to best utilize our capital and manage Company resources all while delivering on our transformation program, to enhance our distribution network by enabling our multi-echelon re-distribution strategy to effectively support our customer growth,” Horvath said.
UNFI has also been looking to strengthen its labor force. Through the Manchester facility, the company hopes to improve retention, employee engagement and overall work experience through a lifestyle center and “associate-friendly workplace,” according to the release.
The Manchester distribution center is the latest addition to UNFI’s portfolio of facilities in Pennsylvania.
The grocery wholesaler also has a York facility, located less than 15 minutes away from its Manchester location, that has “felt the impact of both new and existing customer growth we’ve experienced in this region over the last 12-18 months,” Horvath said.
The investment in Manchester follows UNFI’s announcement last month that it would implement AI and software automation-powered robots and scanning technology in its Centralia, Washington, distribution center. The company plans to deploy Symbotic’s AI technology in five of its distribution warehouses over the next four years, per a September announcement.