UNFI announced plans to optimize its distribution center network in the Pacific Northwest. It will consolidate five distribution centers into a new 1.2 million square foot facility in Centralia, Washington and a newly expanded facility of 800,000 square feet in Ridgefield.
The company has entered into an agreement with a developer in Centralia to construct the 1.2 million square-foot facility on approximately 77 acres.
With the distribution center consolidation, the company plans to enhance customer product offerings, create more efficient inventory management, streamline operations and incorporate best in class technology to deliver a better customer experience, according to a press release.
“The construction of Centralia and expansion of our Ridgefield facility represents the first significant step in our optimization of UNFI’s DC network following the acquisition of Supervalu, allowing us to better serve all our customers throughout the Pacific Northwest,” said Steve Spinner, UNFI Chairman and CEO.
The Centralia distribution center at 4002 Galvin Road, is in close proximity to two existing UNFI DCs in Tacoma and Portland.
Once construction of the new Centralia DC is complete and the expansion of the Ridgefield DC is finished, UNFI plans to close its Tacoma, Portland and Auburn warehouses, as well as reduce its dependency on outside storage and third-party logistics services.
UNFI will expand its Ridgefield, Wash. facility by 541,000 square feet (to a total of nearly 800,000 square feet) to provide capacity for its growing customer base in the natural, organic and specialty channel. This facility will deploy a warehouse automation solution that supports the company’s slow-moving SKU portfolio.
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The optimization of the Pacific Northwest distribution network will also help deliver meaningful synergies contemplated in the acquisition of Supervalu in October 2018.
“These are two tremendous facilities that, once complete, will provide a great working environment for our associates, an improved and efficient layout for inventory management, optimized logistics route planning, and an ability to help us deliver on the long-term synergy goals we outlined as a part of the Supervalu acquisition,” said Spinner.
Today, UNFI operates five distribution centers in the Pacific Northwest, a 944,000 square-foot facility in Tacoma, Wash., a 323,000 square-foot warehouse in Auburn, Wash., 220,000 square-foot and 30,000 square-foot warehouses in Ridgefield, Wash., and a 923,000 square-foot warehouse in Portland, Ore.
Both the Centralia and Ridgefield facilities are expected to be fully operational in the second half of 2019 with customer transition completed in early 2020.