UPS expands capacity in three North America-based locations


By ·

UPS said last week it has made significant facility enhancements in three North American markets, which it said was spurred on by strong demand in the retail, manufacturing, and healthcare sectors.

The facilities UPS is expanding are in Calgary, Alberta, Hebron, Ky., and Mira Loma, Calif. UPS officials said that investments into these facilities will add roughly 478,000 square-feet to the UPS global supply chain solutions network, which is made up of 528 facilities and about 31 million square-feet. These facilities provide various services for shippers, including: warehousing and fulfillment, inventory, transportation and returns management, custom kitting and packaging, and store-ready displays.

UPS Vice President of North American Distribution Stephen Hydrick told LM that its customers in the retail, manufacturing, and healthcare sectors were seeking flexible warehousing and distribution space in strategic locations for their businesses.

“Our customers are seeking the flexibility to scale their businesses up and down as the market requires,” he said. “The occasional spikes in demand related to new product launches, seasonality and less predictable events has driven demand for contracted space for these industries in recent years.”

And he added that the main benefit of these expansions for shippers is location in that these facilities more customers with access to strategic warehousing/fulfillment locations.

When asked how long these respective expansions had been planned, Hydrick said that UPS opened its first building in Hebron in 1997 and has been expanding ever since. Mira Loma came later and the single client facility in Calgary was added in 4Q13.

“We’re really not targeting an end date for the build outs,” he said. “For example, we finished our addition to Hebron in 3Q13 before expanding again in Q4. We’ll expand our campuses as needed to ensure we’re keeping pace with our customers’ growth.”

Hydrick also shared some shipper benefits for each location UPS is expanding:
Mira Loma, Calif.: This location is one hour from the two largest seaports in the U.S., five minutes from the LA/Ontario Airport and UPS regional package/freight air hub, within eight miles of four major freeways, and only fifteen minutes from transcontinental rail connections. Additionally, this location provides shippers with access to Southern California’s growing population base for fulfillment and employment;
Hebron, Ky.: This location offers customers access to 62 percent of the U.S. population within two days via UPS Ground service and 64% of the U.S. population within two days via UPS Freight. It is within 600 miles of 30 major metro markets, five miles of the Cincinnati airport, falls within a region served by three major railroad systems and is intersected by three interstate highways, including I-75 - one of the busiest trucking routes in North America; and
Calgary, Alberta: This location specifically meets the need of customers in the healthcare space, offering a 2-8 degrees Celsius cooler (160 sq. ft.) The healthcare-specific capabilities will enable access into the area for healthcare companies looking to expand their business here.


About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

UPS · All Topics
Latest Whitepaper
Six Ways Cloud ERP Supports Rapid Innovation
Kenandy is a new approach to ERP that lets you and your team focus on driving innovation, creating new product lines, and expanding your customer base even as you improve your business operations.
Download Today!
From the November 2016 Issue
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL) provider that could successfully combine transportation services and technology capabilities under one roof.
Warehouse & DC Operations Survey: Ready to confront complexity
2016 Quest for Quality Awards Dinner
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Best Practices: How to Efficiently Leverage APIs to Increase Your Net Income
Both legacy and modern technology leaders agree that leveraging API connectivity is critical in keeping up with the pace of a world that demands not only speed and agility, but also a deep level of visibility. During this session a panel of technology and industry experts discuss impact APIs can have on annual net income and market capitalization.
Register Today!
EDITORS' PICKS
Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...
Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...

Motor Carrier Regulations Update: Caught in a Trap
The fed is hitting truckers with a barrage of costly regulations in an era of scant profits....
25th Annual Masters of Logistics
Indecision revolving around three complex supply chain elements—transportation, technology and...