[#89] Supply Chain in Numbers - Aug 23, 2021
Aldi wants to hire 20K DC workers, Skechers has 5.1M sqft of DC space, Covariant raises $80M, Wendy plans 700 ghost kitchens, Amazon opened a $1.5 billion air cargo hub in Kentucky
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.
20,000 workers
The rush to recruit holiday labor is hitting earlier in labor-strapped distribution networks. Discount supermarket chain Aldi is the latest example and aims to hire more than 20,000 workers this year with pay for warehouse jobs at $19 an hour as employers compete in a tight U.S. labor market. Rival retailers cite challenges recruiting distribution and retail workers. Kroger has been trying to hire 10,000 people this summer, while Walmart is offering special bonuses and pay raises to retain warehouse staff through January as its networks field high volumes ahead of the seasonal peak. [WSJ]
5.1 million sqft
Skechers USA is doubling down on distribution. The footwear company is opening new warehouses in the U.K., China and beyond. to meet increased demand as more online shoppers seek out comfortable shoes during the pandemic. Skechers boosted its global distribution space to 5.1 million square feet at the end of last year, up from 4 million before Covid-19. The company is planning a roughly 43% expansion of an existing big-box warehouse in Southern California’s logistics-heavy Inland Empire region, and spent about $66 million this year to expand another facility in the state. It’s also splashing out on automation to speed up fulfillment, a move that helped comfy-shoe rival Crocs nearly triple its productivity. [WSJ]
$80 million
Robotics and artificial intelligence (AI) provider Covariant will accelerate its research and development (R&D) efforts and add employees globally after raising $80 million in a venture capital round. The company has deployed its “Covariant Brain” platform for robotic manipulation across a range of industries including fashion, health and beauty, industrial supply, pharmaceutical, grocery, parcel, and general merchandise. Existing customers include Obeta, Knapp, ABB, and Bastian. [DC Velocity]
700 ghost kitchens
Wendy’s announced it will open 700 ghost kitchens across the U.S., U.K. and Canada by 2025 through a partnership with start-up Reef Technology. Wendy’s CEO Todd Penegor said that the company is forecasting annual average sales of $500,000 to $1 million for a Reef ghost kitchen. It will allow the company to expand more into urban locations, and Reef is responsible for buying the kitchens and hiring workers, Penegor said. Penegor also said the program could be a great way to bring in new franchisees because of the lower cost of investment. [CNBC]
$1.5 billion
Amazon opened a $1.5 billion air cargo hub in Northern Kentucky. The Amazon Air Hub operations, located at the Cincinnati/Northern Kentucky International Airport, will be the center of its U.S. cargo network. The hub opened after more than four years of planning and construction. Amazon said the U.S. hub will eventually operate a dozen flights per day and process millions of packages every week. The hub is comprised of an 800,000-square-foot sortation building located on a 600-acre campus that includes seven buildings, a new ramp for aircraft parking, and a multistory vehicle parking structure. [Tech Crunch]