[#192] Supply Chain in Numbers - Aug 14, 2023
Kraft Heinz is opening a 775k sqft DC, DHL'ATL sorter can handle 20,000 pieces an hour, Simbe raised $28M, Supply chain theft is growing, Panama Canal delays are 15 to 19 days now
Welcome to “Supply Chain in Numbers.” This newsletter tracks significant digits from the world of the supply chain. Five prominent numbers are published every Monday. If you have any feedback, please send it to me.
775,000 sqft
Kraft Heinz has revealed a more than $400 million investment to build one of North America's largest automated CPG distribution centers. Located in DeKalb, Ill., the 775,000 square-foot national distribution facility will feature state-of-the-art automation technology and national railway access, enabling Kraft Heinz to drive greater supply chain efficiencies and distribute its products to retail and food service customers faster than ever. The facility is expected to open in 2025. The facility’s design includes a 24/7 automated storage and retrieval system that can drive twice the volume for Kraft Heinz customers, distributing more than 60% of the company’s food service business and approximately 30% of all dry goods. [Progressive Grocer]
20,000 pieces per hour
DHL Express opened a 100,000-square-foot automated hub at Hartsfield-Jackson Atlanta International Airport. The $84.5 million facility is equipped to sort up to 20,000 pieces per hour and features threat detection and security screening technologies. The hub currently provides connections between 19 cities, and DHL plans to add flight connections to Hong Kong (HKG), Mexico (GDL, NLU), the UK (EMA), and Puerto Rico (SJU) starting next year. [SC Dive]
$28 million Series B
Inventory robots are having a moment. Simbe’s inventory robots score $28 million in Series B funding. It follows the news that BJ’s Wholesale Club is rolling out Simbe’s Tally robotics to all its locations. Simbe differs from many firms in this space in its focus on front-of-store operations. It is designed to monitor shelves for missing items that may have been replaced or stolen. It’s a job that traditionally involves hours of human labor and store shutdowns (or overnight shifts). It’s also one for shelves generally a bit lower than one encounters in a warehouse. [Tech Crunch]
63% increase in theft
Lengthy supply chains have become fertile ground for multinational crime rings. Sportswear giant Nike is one of the companies coping with the hazards of sprawling manufacturing and distribution operations. It faces theft at almost every supply chain step, from distribution centers, rail yards, and trains to package delivery trucks. Target, Macy’s and BJ’s Wholesale Club are also facing a growing global trade problem. Theft prevention network CargoNet says reports of cargo theft across supply chains were up 63% in the first half of the year. Items such as Nike Air Jordan sneakers with high resale value highlight how long supply chains expose companies to theft. [WSJ]
15 to 19 days
Delays at the Panama Canal averaged about 15 to 19 days per vessel in the first week of August, with low water levels in the Gatun Lake restricting the number of fully-laden vessels able to make the transit. Affected by what it has described as an “unprecedented” drought, the Panama Canal Authority has shaved around 2 m off its maximum draft for its neopanamax locks and slashed the maximum amount of daily transits by 20% to just 32 voyages a day. [Splash247]