Warehousing & Distribution Centers Archives - Distribution Strategy Group https://distributionstrategy.com/category/operations/warehousing-distribution-centers/ Thought Leadership and Software for Wholesale Change Agents Fri, 11 Sep 2026 14:43:29 +0000 en-US hourly 1 https://wordpress.org/?v=7.1 https://distributionstrategy.com/wp-content/uploads/2026/03/cropped-Iconmark-Small-1-32x32.png Warehousing & Distribution Centers Archives - Distribution Strategy Group https://distributionstrategy.com/category/operations/warehousing-distribution-centers/ 32 32 Winsupply Adds Ohio Facility as 1.6 Million Square Foot Distribution Expansion Advances https://distributionstrategy.com/2026/09/winsupply-adds-ohio-facility-as-1-6-million-square-foot-distribution-expansion-advances/ Fri, 04 Sep 2026 14:48:03 +0000 https://distributionstrategy.com/?p=13290 The acquisition comes as Winsupply advances a broader distribution expansion announced in March. The company plans to add 1.6 million square feet of capacity over two years through projects in Ohio, Oklahoma and Georgia.

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Why This Matters to Distributors: Winsupply has acquired another facility next to its Dayton distribution center as the $8.4 billion distributor moves ahead with one of the largest expansions of its distribution infrastructure in company history.

Winsupply has acquired a 48,000 square foot facility next to its Dayton, Ohio, distribution center as the distributor moves ahead with a 1.6 million square foot expansion of its national distribution network.

The company said Sept. 3 that it closed this week on the purchase of the former Planes Moving & Storage facility at 9370 Byers Road in Miami Township. The building sits next to Winsupply’s existing distribution center, where the company is adding approximately 200,000 square feet.

Winsupply said the newly acquired building is intended for future use. The company did not disclose the purchase price or provide details on how the facility ultimately will be used.

The acquisition comes as Winsupply advances a broader distribution expansion announced in March. The company plans to add 1.6 million square feet of capacity over two years through projects in Ohio, Oklahoma and Georgia.

The largest is a 1.17 million square foot distribution center Winsupply purchased in Atlanta. The facility will become the company’s eighth distribution center.

Winsupply also is adding 254,000 square feet to its existing Oklahoma City distribution center and approximately 200,000 square feet to its Dayton operation.

The Dayton expansion is expected to be the last of the three major projects completed, with work scheduled to finish around fall 2027.

“The additional space in Dayton will enable Winsupply to increase our product breadth and depth and provide the products to Local Companies so they can serve their customers,” Winsupply president Jeff Dice said.

Winsupply said the Dayton project has required extensive site preparation, with more than 20,000 truckloads of dirt removed as of June.

The company has positioned the three distribution projects as a way to increase product availability and inventory depth across its network of more than 680 locally operated wholesale companies.

Winsupply Inc. holds majority equity stakes in those businesses, known as Winsupply Local Companies. They distribute construction and industrial products across markets including plumbing, heating, ventilation and air conditioning, electrical, waterworks, pipes, valves and fittings, pumps and maintenance, repair and operations.

The additional distribution capacity is designed to give those local businesses access to broader product assortments and deeper inventory while centralizing more of the infrastructure required to support their growth.

Winsupply described the 1.6 million square foot program in March as one of the most significant periods of infrastructure growth in the company’s history.

The company reported $8.4 billion in sales for the fiscal year ended Jan. 31, 2026, which Winsupply described in April as a record fiscal year. The Winsupply family of companies employs more than 9,500 people nationwide.

The latest property purchase extends Winsupply’s investment around its Dayton distribution operation while the larger network expansion moves forward. In Dayton alone, the company is adding approximately 200,000 square feet to its existing distribution center and now has another 48,000 square foot building available for future use.

For distributors, the broader investment illustrates how Winsupply is putting more warehouse capacity behind its decentralized wholesale model. Rather than changing the local ownership structure at the center of its business, the company is expanding the distribution infrastructure those businesses can use to increase product availability and assortment as they grow.

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BlueLinx Adds Trex Decking and Railing Across 11 Distribution Centers https://distributionstrategy.com/2026/09/bluelinx-adds-trex-decking-and-railing-across-11-distribution-centers/ Thu, 03 Sep 2026 16:45:11 +0000 https://distributionstrategy.com/?p=13257 The agreement expands BlueLinx’s specialty products portfolio as the building products distributor looks to increase its exposure to higher-value product categories.

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Why This Matters: The agreement expands BlueLinx’s specialty building products business across 11 distribution centers and gives the distributor a larger position in the outdoor living category across markets in 11 states.

BlueLinx Holdings Inc. is expanding its outdoor living business through a new distribution agreement with Trex Company Inc., adding the composite decking manufacturer’s products across 11 distribution centers in the Midwest and Southeast.

Atlanta-based BlueLinx said it will distribute Trex decking and railing products from distribution centers in Indianapolis; St. Louis; Cincinnati; Erwin and Nashville, Tennessee; Atlanta; Birmingham, Alabama; Memphis, Tennessee; Gulfport, Mississippi; Little Rock, Arkansas; and Monroe, Louisiana.

The distribution territory covers markets in Missouri, Illinois, Ohio, Kentucky, West Virginia, Tennessee, Arkansas, Louisiana, Mississippi, Alabama and Georgia.

The agreement expands BlueLinx’s specialty products portfolio as the building products distributor looks to increase its exposure to higher-value product categories. The company distributes lumber, panels, engineered wood, siding, millwork and industrial products, along with other branded and private-label building products.

Adding Trex also gives BlueLinx another major brand in its outdoor living portfolio and creates opportunities to sell complementary products to existing dealers and contractors.

BlueLinx CEO Shyam Reddy said the distributor is seeking to expand its portfolio with established brands that can increase value to customers and create additional growth opportunities.

Trex, based in Winchester, Virginia, manufactures composite decking and residential railing as well as other outdoor living products. The company sells its products through more than 6,700 retail outlets across six continents.

For Trex, the BlueLinx agreement adds distribution capacity across a sizable portion of the central and southeastern U.S.

BlueLinx serves customers in all 50 states through its distribution network. Its customers include national home centers, professional dealers, cooperatives, specialty distributors, regional and local dealers and industrial manufacturers.

The Trex agreement is the latest move by BlueLinx to put more emphasis on specialty products, which the company views as an avenue for expanding sales beyond more commodity-oriented building materials while increasing the amount of business it does with existing customers.

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Grainger Opens 550,000-Square-Foot Oregon Distribution Center https://distributionstrategy.com/2026/08/grainger-opens-550000-square-foot-oregon-distribution-center/ Thu, 20 Aug 2026 16:48:39 +0000 https://distributionstrategy.com/?p=12778 Grainger has made distribution capacity a central part of its North American strategy, investing in warehouses, automation, and inventory to support product availability and delivery times.

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Why This Matters to Distributors: Grainger has added 550,000 square feet of distribution capacity in the Pacific Northwest as part of its multiyear expansion of its North American supply chain. The Oregon facility adds about 150 jobs and gives Grainger more capacity to stock products closer to customers in the region.

W.W. Grainger Inc. has opened a 550,000-square-foot distribution center near Portland, Oregon, expanding its Pacific Northwest operations as the industrial distributor adds capacity to its North American network.

Grainger held a grand opening Aug. 19 for the Northwest Distribution Center in Gresham, about 16 miles east of Portland. The facility creates about 150 jobs and will serve businesses, government agencies, and institutions across the region.

The Lake Forest, Illinois-based distributor first announced plans for the facility in 2023. Grainger said at the time that the distribution center would carry more than 135,000 maintenance, repair and operating products, including tools, heating, ventilation and air conditioning equipment, fluid power products, lighting, power transmission equipment, and motors.

“The Northwest Distribution Center is an important addition to Grainger’s supply chain network, enabling us to provide customers across the Pacific Northwest with faster, more efficient access to the products and services they need to keep operations running,” said Kristi Braverman, group vice president of distribution operations.

Grainger has operated in Oregon since 1945 and employs about 240 people in the state.

The Gresham facility is part of a broader expansion of Grainger’s distribution network as the company adds warehouse capacity and positions more inventory closer to customers.

Grainger has previously said projects underway or planned would add about 3.5 million square feet to its distribution network, increasing its warehouse space by more than 35%.

Those investments include a 1.2 million-square-foot distribution center under development in Hockley, Texas, northwest of Houston. Grainger has said the facility is expected to employ about 400 people and eventually stock as many as 300,000 products.

The company has also been adding bulk warehouse capacity and automation to support a larger product assortment and reduce the distance inventory must travel to reach customers.

When Grainger announced the Oregon project, it said the facility would support its goal of providing next-day delivery to 99% of the U.S. market.

The additional capacity comes as Grainger’s sales continue to increase.

Grainger reported second-quarter 2026 sales of $5.02 billion, up 10.3% from a year earlier. Net income increased 18.3% to $570 million.

The company generated $17.9 billion in sales in 2025 and serves more than 4.6 million customers worldwide, with operations primarily in North America and Japan.

Grainger has made distribution capacity a central part of its North American strategy, investing in warehouses, automation, and inventory to support product availability and delivery times.

The Gresham center gives the company additional inventory and fulfillment capacity specifically for the Pacific Northwest rather than relying as heavily on distribution centers farther from customers in the region.

For other distributors, the opening illustrates the amount of physical infrastructure Grainger continues to put behind its service model. The company is adding warehouse space, inventory, and automation as it works to increase product availability and maintain next-day delivery across most of the U.S.

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Medline Adds Customers, Distribution Capacity as Sales Rise 11.6% https://distributionstrategy.com/2026/08/medline-adds-customers-distribution-capacity-as-sales-rise-11-6/ Fri, 14 Aug 2026 16:35:22 +0000 https://distributionstrategy.com/?p=12596 Medline secured more than $650 million in new customer signings during the first half, more than 65% of its $1 billion full-year goal.

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Why This Matters to Distributors: Medline has signed more than $650 million in new customer business this year and is adding distribution centers, automation, and workers to manage growth. At the same time, a fire at its Tracy, California, distribution center is testing the resilience of the network and accelerating a major expansion of its California capacity.

Medline is accelerating investments in distribution capacity and automation as new customer wins drive double-digit sales growth, while the medical-surgical distributor rebuilds its Northern California network following a June distribution center fire.

Second-quarter sales increased 11.6% to $7.685 billion from $6.886 billion a year earlier. Net income fell 58.3% to $139 million from $333 million, largely because of $336 million in losses related to the fire at Medline’s Tracy, California, distribution center before expected insurance recoveries.

For the first six months of 2026, sales increased 11.1% to $15.037 billion from $13.530 billion. Net income declined 42.3% to $378 million from $655 million, also reflecting the Tracy fire, along with higher operating and product costs.

Behind the sales growth is a broader business development push. Medline secured more than $650 million in new customer signings during the first half, more than 65% of its $1 billion full-year goal. The agreements span acute care, physician offices, laboratories, skilled nursing, senior living, home health, and hospice.

CEO Jim Boyle said Medline expects to exceed the $1 billion target.

“We’re ahead of pace to achieve the $1 billion, and we’re confident that we’re going to hit the $1 billion plus,” Boyle told analysts.

Unlike the previous year, when several large agreements helped produce $2.4 billion in new business, Boyle said this year’s gains have come from a larger collection of smaller contracts.

That strategy is producing particularly robust growth in Medline’s distribution operation. Supply Chain Solutions sales increased 16.3% to $4.145 billion in the second quarter from $3.564 billion a year earlier. First-half sales increased 15.7% to $8.032 billion from $6.944 billion.

Medline’s strategy is to use those supply chain relationships as an entry point for broader customer growth. Winning a prime vendor agreement puts the distributor in a position to expand into additional healthcare settings and convert more of the customer’s purchases to Medline-branded products.

The company estimates it has about $5 billion in potential Medline Brand conversion opportunities within its existing business.

One of Medline’s recent wins is an expanded prime vendor agreement with Allina Health in the Upper Midwest. The agreement broadens an existing relationship across acute care, physician offices, and other operations.

Boyle called Allina a “sizable deal” but did not disclose its value. He said the agreement went live in July.

Medline is also expanding relationships beyond traditional hospital supply contracts. The company said new business in physician offices and laboratories has come from both existing acute-care customers and organizations where Medline previously did not serve as the prime vendor.

That creates an opportunity to move in both directions: from hospital supply into physician offices, laboratories, and surgery centers, or from an initial laboratory relationship into a broader prime vendor agreement.

“It is a part of our playbook” to win new business and expand sales within existing customer networks, Boyle said.

U.S. acute-care sales increased 15% to $5.4 billion in the second quarter, while non-acute sales increased 4% to $1.7 billion. International sales increased 9% to $533 million.

The customer gains are forcing Medline to invest before all the new sales reach its distribution network.

The company is adding workers, distribution centers, and automation to accommodate new contracts and growth from existing customers. Medline said it has been bringing about $2.4 billion in previously signed business onto its network.

Boyle said labor sometimes must be added three to six months before the corresponding customer volume begins moving through Medline’s facilities.

Medline is also installing AutoStore automation in facilities where rising volumes have created labor inefficiencies. The company is adding distribution capacity in Texas and California and is considering two additional distribution centers in the Midwest.

“As we add new distribution centers, as we add automation, we expect to see those inefficiencies subside and ultimately see some savings in our business,” chief financial officer Mike Drazin said.

The spending reflects a longstanding strategy of putting capacity in place before expected demand arrives.

“We’ve been intentional for many, many years of investing in our business for growth ahead of the growth,” Drazin said.

That expansion strategy took on greater urgency after the mid-June fire at Medline’s Tracy distribution center.

The company used inventory elsewhere in its network, other distribution centers, and its MedTrans transportation fleet to continue serving customers after the fire.

Within a month, Medline secured 1.6 million square feet across two distribution centers, increasing its customer-facing Northern California footprint by 45%.

Medline has already taken occupancy of a replacement Tracy distribution center and expects it to begin serving customers during the fourth quarter. A new Stockton facility is scheduled for occupancy in January 2027.

The company separately plans to open a 1 million-square-foot Southern California distribution center. Together, the projects are expected to bring Medline’s California footprint to 5 million square feet by mid-2027. The facilities are expected to use automation technologies deployed elsewhere in Medline’s network.

“This is about more than scale,” Boyle said. “It reinforces resiliency and redundancy across our network.”

The fire had a significant effect on Medline’s reported earnings. The company recorded $336 million in losses related to inventory, fixed assets, and other costs during the second quarter. Medline said it believes it has sufficient insurance coverage and expects future recoveries.

Medline expects another $50 million to $100 million in fire-related costs during the second half, including cleanup, product rerouting, airfreight, leases, and labor inefficiencies as replacement operations come online.

The combination of customer wins and the California disruption is accelerating a broader buildout of Medline’s distribution network.

The company spent $207 million on capital projects during the first half, primarily on distribution center improvements and automation and expansion of its kitting manufacturing operations.

Medline also raised its full-year sales growth expectation to 9% to 10% from 8.5% to 9.5%, citing demand from new and existing customers.

For distributors, the more consequential development is where Medline is putting capacity.

The company is using prime vendor wins to expand across customer locations and care settings, then investing in distribution centers, automation, and labor before all that volume arrives. At the same time, the Tracy fire has led Medline to build additional redundancy into a California network that is expected to approach 5 million square feet by mid-2027.

The strategy links business development directly to distribution infrastructure: win the customer, expand the relationship across its network, and put enough capacity in place to manage the resulting volume.

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UNFI Expands Electric Truck Fleet at California Distribution Center https://distributionstrategy.com/2026/08/unfi-expands-electric-truck-fleet-at-california-distribution-center/ Fri, 07 Aug 2026 21:25:27 +0000 https://distributionstrategy.com/?p=12287 The battery system will capture excess electricity generated by the solar array for use at other times, allowing UNFI to better manage demand on the electrical grid and the power requirements of its growing electric truck fleet.

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Why This Matters to Distributors: UNFI is pairing electric trucks with onsite solar generation and battery storage at its Gilroy, California, distribution center, using energy infrastructure as part of a broader effort to improve fleet efficiency and supply chain resilience.

United Natural Foods Inc. is expanding its use of electric trucks with a new fleet and energy infrastructure project at its Gilroy, California, distribution center.

The food distributor has started construction on infrastructure capable of charging as many as 30 electric trucks, which would make Gilroy home to UNFI’s largest electric vehicle fleet to date.

The project also includes a 1.5-megawatt onsite solar array and battery storage system. UNFI said the additions are expected to more than double the distribution center’s renewable energy generation capacity.

The Providence, Rhode Island-based distributor is integrating vehicle charging, solar generation and battery storage at the same facility rather than treating fleet electrification as a standalone transportation project. The company said the combination could help reduce exposure to changing energy costs while improving the reliability of its distribution operations.

The battery system will capture excess electricity generated by the solar array for use at other times, allowing UNFI to better manage demand on the electrical grid and the power requirements of its growing electric truck fleet.

“This project reflects how we’re continuing to strengthen our distribution network to better serve customers and suppliers, while building a more resilient and efficient supply chain,” Kevin Alavi, UNFI’s director of sustainable operations, said in a statement.

For food distributors, transportation is a critical operating expense and a major source of complexity. Large distribution networks depend on fleets that operate on tight delivery schedules, making vehicle availability, fuel, and energy costs, and charging infrastructure important considerations as companies evaluate electric trucks.

UNFI’s Gilroy project also shows how fleet investments increasingly are becoming part of broader distribution-center energy strategies. Onsite generation and battery storage can give operators greater control over when they draw electricity from the grid and how they manage periods of high energy demand.

The company is working with Trio, an energy and sustainability advisory firm; PowerFlex, which provides charging, solar and battery technology; and Zeem Solutions, which specializes in commercial electric fleets and charging infrastructure.

The California Energy Commission and Bay Area Air District also provided funding for the project. UNFI did not disclose the total cost of the investment or how much public funding it received.

The Gilroy project comes as distributors continue to invest in transportation, automation, and distribution-center technology to lower operating costs and improve the reliability of increasingly complex supply chains.

UNFI is one of North America’s largest grocery wholesalers, supplying conventional, natural, organic and specialty products to more than 30,000 customer locations in the U.S. and Canada.

For UNFI, the Gilroy investment puts fleet electrification alongside warehouse and energy infrastructure as another lever for improving distribution efficiency rather than simply an environmental initiative.

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InstaLILY Hires Former Association Executive to Lead Distribution Expansion https://distributionstrategy.com/2026/08/instalily-hires-former-association-executive-to-lead-distribution-expansion/ Thu, 06 Aug 2026 17:05:43 +0000 https://distributionstrategy.com/?p=12236 In his new role, Adam Isenberg will lead InstaLILY's engagement with distributors, deepen industry partnerships, and support the company's continued expansion across the wholesale distribution market.

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Why This Matters to Distributors: InstaLILY is expanding its wholesale distribution business by hiring a longtime National Association of Wholesaler-Distributors executive as it grows its AI platform for quote-to-order automation, sales prioritization, and other distributor workflows.

InstaLILY has hired Adam Isenberg as head of distribution, adding a National Association of Wholesaler-Distributors (NAW) executive to lead its work with wholesale distributors.

The New York-based artificial intelligence company announced the appointment Aug. 3. Isenberg spent more than 14 years at NAW, where he worked with executives and operators across the wholesale distribution industry.

In his new role, Isenberg will lead InstaLILY’s engagement with distributors, deepen industry partnerships, and support the company’s continued expansion across the wholesale distribution market.

InstaLILY said distributors already have demand flowing into their businesses through requests for quotes, purchase orders, product searches, customer conversations, and account history. Converting that demand into revenue, however, often requires employees to assemble information from enterprise resource planning (ERP) systems, customer relationship management (CRM) software, email, catalogs, and other business systems.

Adam Isenberg

The company said its Lily platform, which it describes as the first AI Forward Deployed Engineer, learns how a company prices, sells, approves, and serves customers before building software that operates within existing technology environments. The platform connects ERP systems, CRM software, email, company data, internal applications, and human approval workflows while allowing distributors to keep their existing systems in place.

According to the company, Lily can be deployed within days and integrates with systems commonly used by distributors, including Epicor Prophet 21, IBM AS/400 environments, Salesforce, SAP, Oracle, email, and internal applications.

InstaLILY said the platform automates quote-to-order workflows by processing customer inquiries received through email, PDF or fax, matching them with customer records, products, inventory, pricing and approval rules before preparing quotes, routing approvals, processing purchase orders and writing completed transactions back into the ERP. The platform also identifies accounts most likely to buy and provides sales teams with customer, product, pricing, and cross-sell information.

For manufacturers and original equipment manufacturers, the company said the platform connects information across dealer and distributor networks to provide visibility into inventory, demand, sales activity, and competitive exposure.

InstaLILY said customers include SRS Distribution, ITW, Harrington, Radwell International, National Nail, Novae, Copper State Bolt & Nut and Parts Town.

The appointment follows InstaLILY’s July 14 announcement that it raised $60 million in funding led by Energize Capital, with participation from Insight Partners, Home Depot Ventures, and United Rentals. The company said the financing increased its total funding to $100 million and will support continued product development, workforce expansion, and growth into additional industries.

Founded in 2023 by Amit Shah and Sumantro Das, InstaLILY is headquartered in New York with offices in San Francisco, London, and Toronto. The company said it serves customers through construction, industrial distribution, logistics, healthcare, and other operationally intensive industries.

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White Cap Opens Pennsylvania Distribution Center to Expand Northeast Supply Chain https://distributionstrategy.com/2026/08/white-cap-opens-pennsylvania-distribution-center-to-expand-northeast-supply-chain/ Thu, 06 Aug 2026 16:09:27 +0000 https://distributionstrategy.com/?p=12214 The new facility is part of White Cap's continuing investment in its North American distribution network as the company expands capacity to support faster fulfillment and improve supply chain efficiency.

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Why This Matters to Distributors: White Cap’s investment reflects a broader shift among distributors toward larger regional fulfillment centers that improve inventory availability, accelerate delivery and support large-scale construction projects. As contractors demand faster fulfillment and broader product assortments, distribution network investments are becoming an increasingly important competitive differentiator.

White Cap has opened a 480,940-square-foot enterprise distribution center in Bethlehem, Pennsylvania, expanding its distribution network and strengthening its ability to serve construction customers across the Northeastern United States.

The Bethlehem facility is White Cap’s second enterprise distribution center and its first in the Eastern United States. The company said the facility will supply 67 branches across 13 states, serving major construction markets including New York City, Boston, Philadelphia, Baltimore, and Washington.

The distribution center currently employs 66 associates, with plans to expand its workforce to more than 70 as operations grow.

CEO Alan Sollenberger said the facility will place more inventory closer to customers, improving service in some of the country’s busiest construction markets.

“Our Bethlehem EDC puts more of our broad product assortment closer to our customers’ job sites,” says Sollenberger.

Chief supply chain officer Tracy Rosser notes the facility will increase inventory capacity, shorten order turnaround times, and improve delivery capabilities while supporting major commercial and infrastructure projects throughout the Northeast.

The new facility is part of White Cap’s continuing investment in its North American distribution network as the company expands capacity to support faster fulfillment and improve supply chain efficiency. Larger regional distribution centers are becoming increasingly common across wholesale distribution as companies seek to improve inventory deployment, reduce delivery times, and support customers managing complex construction projects.

White Cap distributes specialty construction supplies, safety products, tools, equipment, fasteners, concrete accessories and chemicals, building materials, waterproofing products, and erosion control products. The company operates approximately 575 branches across North America, employs more than 12,000 people, and serves about 200,000 customers.

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AlarMax Expands Logistics, Training Capabilities with New Fulfillment Center and Innovation Lab https://distributionstrategy.com/2026/08/alarmax-expands-logistics-training-capabilities-with-new-fulfillment-center-and-innovation-lab/ Mon, 03 Aug 2026 16:57:40 +0000 https://distributionstrategy.com/?p=12108 The investments reflect a broader shift in specialty distribution as security, access control, networking and audiovisual systems become more integrated and technically complex.

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Why This Matters to Distributors: Specialty distributors are increasingly competing on technical expertise, customer training and supply chain performance rather than product availability alone. AlarMax’s latest investments reflect a broader industry shift toward value-added services that deepen customer relationships and support more complex technology deployments.

AlarMax is expanding its logistics and customer support capabilities with the opening of a national fulfillment center and an innovation lab, investments aimed at strengthening inventory availability, technical training and supplier collaboration as demand grows for integrated security and low-voltage systems.

The wholesale distributor announced Monday that it has opened a 40,000-square-foot National Fulfillment Center in Cranberry Township, Pennsylvania, and the AlarMax Product Experience (APEX) Innovation Lab at its Pittsburgh headquarters.

The fulfillment center expands the company’s inventory capacity and serves as a centralized distribution hub for its nationwide branch network. AlarMax said the facility is designed to improve order fulfillment, increase product availability and strengthen supply chain efficiency as the company expands.

The APEX Innovation Lab provides a hands-on environment where customers, suppliers and employees can evaluate integrated security technologies, participate in technical training and certification programs, and test products in real-world applications. The facility features solutions from 15 supplier partners and includes dedicated classroom space for customer education and product demonstrations.

“Today’s customers expect more than product availability : they expect expertise, education and trusted partners who can help them design complete solutions,” CEO Scott Shelander said.

The investments reflect a broader shift in specialty distribution as security, access control, networking and audiovisual systems become more integrated and technically complex. Distributors increasingly are differentiating themselves by offering engineering support, technical training and solution design alongside traditional inventory management and fulfillment services.

“Distribution continues to evolve beyond simply moving products,” Chairman Bill Teitelbaum said in a statement. “Customers rely on trusted partners for inventory availability, technical expertise, education and operational support.”

The expansion follows a series of investments by AlarMax in technology, supply chain operations and executive leadership as the company pursues a long-term growth strategy. Earlier this year, the distributor appointed Steve Teitelbaum as chief technology officer to lead artificial intelligence initiatives and promoted Matt Ehrman to senior vice president of supply chain.

AlarMax plans to officially open both facilities during an Aug. 25 customer event featuring supplier exhibits, product demonstrations and facility tours.

The announcement underscores a growing trend among specialty distributors to invest in infrastructure that extends beyond warehousing. As products become more sophisticated and customers seek greater technical support, distributors are increasingly using training centers, demonstration labs and centralized fulfillment operations to differentiate themselves and strengthen long-term customer relationships.

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Chefs’ Warehouse Delivers Double-Digit Sales Growth as Restaurant Demand Remains Strong https://distributionstrategy.com/2026/07/chefs-warehouse-delivers-double-digit-sales-growth-as-restaurant-demand-remains-strong/ Wed, 29 Jul 2026 16:03:38 +0000 https://distributionstrategy.com/?p=12033 Chefs' Warehouse reaffirmed its full-year outlook, projecting 2026 sales of $4.50 billion to $4.60 billion and gross profit of $1.10 billion to $1.13 billion, reflecting continued confidence in demand from independent restaurants and other foodservice customers.

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Why This Matters to Distributors: Chefs’ Warehouse’s results point to continued strength in foodservice distribution despite an uneven economy. Growth in customer accounts, product volume and market share suggests independent restaurants and hospitality customers continue to invest, creating opportunities for specialty food distributors.

The Chefs’ Warehouse Inc. reported double-digit growth in second-quarter sales and net income, driven by higher order volumes, new customer wins, and continued gains in market share across its North American business.

The Ridgefield, Connecticut-based specialty food distributor said second-quarter sales increased 12.9% to $1.17 billion, up from $1.03 billion a year earlier. Net income increased 59.0% to $33.8 million, compared with $21.2 million in the second quarter of 2025.

For the first six months of 2026, sales increased 12.2% to $2.23 billion, up from $1.99 billion in the same period last year. Year-to-date net income rose 62.2% to $51.1 million, compared with $31.5 million in the first half of 2025.

The company said all its growth came from existing operations rather than acquisitions. Organic sales increased 12.2%, while acquisitions contributed $7.6 million, or 0.7%, to quarterly sales growth. Specialty product case volume increased 6.0%, the number of unique customers grew 3.6%, and product placements increased 7.2% from a year earlier. Volume in the company’s center-of-the-plate meat and seafood business increased 8.8%.

“Second quarter 2026 displayed strong growth in both revenue and profitability,” says CEO Christopher Pappas said. “We are driving market share gains via growth in product penetration, case volume and unique customers, combined with ongoing improvement in operational efficiency.”

The company also reported improving performance in the Middle East, where sales during May and June reached approximately 94% of year-earlier levels despite seasonal slowing during the summer months.

Higher sales volume and pricing helped lift profitability during the quarter. Gross profit increased 15.2% to $292.9 million, up from $254.3 million a year earlier. Operating income climbed 45.8% to $58.6 million, compared with $40.2 million in the second quarter of 2025, as revenue growth more than offset higher labor, facility, and distribution costs.

Chefs’ Warehouse reaffirmed its full-year outlook, projecting 2026 sales of $4.50 billion to $4.60 billion and gross profit of $1.10 billion to $1.13 billion, reflecting continued confidence in demand from independent restaurants and other foodservice customers.

The company distributes more than 90,000 specialty food products to more than 55,000 customer locations, including independent restaurants, hotels, country clubs, caterers, bakeries, cruise lines and specialty food retailers across the United States, Canada, and the Middle East.

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Honeywell Completes Sale of Warehouse Automation Business to American Industrial Partners https://distributionstrategy.com/2026/07/honeywell-completes-sale-of-warehouse-automation-business-to-american-industrial-partners/ Tue, 28 Jul 2026 15:25:54 +0000 https://distributionstrategy.com/?p=11973 The divestiture is the latest step in Honeywell's restructuring strategy as the company narrows its focus to industrial automation, software, and autonomous operations.

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Why This Matters to Distributors: Honeywell’s sale of Intelligrated marks another major realignment in the warehouse automation market. For distributors investing in automated fulfillment, the business will now operate under an owner focused exclusively on industrial businesses, while Honeywell shifts its attention to industrial automation, software, and autonomous operations.

Honeywell Technologies has completed the sale of its Warehouse and Workflow Solutions business to private equity firm American Industrial Partners, ending its ownership of one of the largest warehouse automation suppliers serving distributors, manufacturers, and retailers.

The all-cash transaction includes the Intelligrated warehouse automation and Transnorm conveyor businesses. Terms were not disclosed.

The divestiture is the latest step in Honeywell’s restructuring strategy as the company narrows its focus to industrial automation, software, and autonomous operations.

“The completion of the WWS divestiture further sharpens Honeywell Technologies as a pure-play automation company,“ CEO Vimal Kapur said.

Warehouse and Workflow Solutions designs, builds and integrates automated distribution centers, including conveyor and sortation systems, robotics, warehouse execution software, and related services. Its technology is used by distributors, retailers, ecommerce companies, and parcel carriers to improve warehouse productivity and fulfillment efficiency.

The business will continue operating under the Intelligrated and Transnorm brands as part of American Industrial Partners, a New York-based private equity firm focused on industrial companies.

The transaction comes as distributors continue investing heavily in warehouse automation to address labor shortages, increase throughput and meet rising customer expectations for faster order fulfillment. Intelligrated has long been one of the industry’s largest providers of automated material handling systems for large distribution centers.

The sale also advances Honeywell’s broader portfolio transformation.

In June, the company completed the spin-off of its Aerospace Technologies business into the independent public company Honeywell Aerospace. That followed the October 2025 spin-off of its Advanced Materials business into Solstice Advanced Materials.

Honeywell also expects to complete the sale of its Productivity Solutions and Services business in early August.

At the same time, the company has expanded its automation portfolio through acquisitions. Since 2023, Honeywell has completed about $11.5 billion in acquisitions, including Compressor Controls Corp., SCADAfence, Carrier Global’s Access Solutions business, Air Products’ liquefied natural gas business, Sundyne, Li-ion Tamer and Johnson Matthey’s Catalyst Technologies business.

Following the divestiture, Honeywell said it will focus on automation technologies for buildings, industrial facilities, and process industries, supported by its Honeywell Forge software platform and Accelerator operating system.

American Industrial Partners has not announced any changes to the Warehouse and Workflow Solutions business following the acquisition. The company said Intelligrated and Transnorm will continue operating under their existing brands.

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