UPS plans to close hundreds of facilities this year. How will OKC's new UPS center fare?
The shine hasn't worn off of UPS's new distribution center in Oklahoma City yet the logistics giant plans to close facilities in favor of automation. UPS plans to close around 200 U.S. facilities this year as it shifts more shipping through automated package hubs in an effort to reduce the reliance on manual labor and save $3 billion by 2020. The company's new distribution center in Oklahoma City was fully automated when it opened late last year, making it more efficient by a third than older UPS facilities. UPS plans to more than triple the number of automated buildings in its network to 400 by the end of 2028, with the large majority of these projects completed in existing buildings and 10 from newly built locations. The move is part of the 'Network of the Future' initiative, which aims to reduce UPS’ reliance upon manual labor in its package sortation operations.
Publicados : um mês atrás por Richard Mize, The Oklahoman no Business
Oklahoma City's still-new UPS distribution center came fully automated when it opened late last year, so it probably will survive coming closings as the logistics giant shifts more shipping through automated package hubs, the company said.
Service from the new warehouse at 8825 N Interstate 35 extends north and east and complements the UPS Customer Center hub at 901 S Portland Ave., the Shawnee Center and Stillwater Center.
"We have not announced any sort closures at facilities in Oklahoma," spokesman Becky Biciolis-Pace said. "We could be evaluating, but the (communications) team has not been notified yet.
"At UPS, we’re constantly evaluating the market to ensure we are well positioned for continued and future growth as we strive to create an even stronger company. Our new facility (in) Oklahoma City is a part of that strategy."
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UPS heralds 'Network of the Future' as it turns more to automation
UPS intends to close around 200 U.S. facilities as its reliance on automation grows, including 40 sort facilities this year, up from 30 last year, the company revealed during a recent investor and analyst conference, according to industry publication Supply Chain Dive.
"The company is consolidating locations as part of its 'Network of the Future' initiative, which aims to reduce UPS’ reliance on manual labor in its package sortation operations and save $3 billion by the end of 2028," Supply Chain Dive reported.
Network of the Future "is targeting all activities for automation within our four walls,” said Nando Cesarone, UPS executive vice president and president of U.S. operations.
UPS warehouse in north OKC 'more efficient by a third' than old centers
UPS opened the new OKC center in October employing 120 permanent workers in developer Gardner Tanenbaum's Britton Commerce Park. UPS employs about 2,000 people in OKC, Biciolis-Pace said.
The $39.6 million, 180,000-square-foot distribution center is fully automated and "more efficient by a third than older UPS facilities in the area, enabling the movement of 10,000 packages an hour," Biciolis-Pace said at the time. The daily dispatch includes 128 delivery drivers and 19 tractor-trailers, she said.
UPS plans to "more than triple the number of automated buildings in its network by the end of 2028, growing to 400 facilities," Supply Chain Dive reported. "The large majority of automation projects will be completed in existing buildings, while 10 will come from newly built locations.
"Automation currently being deployed in the company’s network includes robotic systems to help unload trailers and pick-and-place technologies that automate package movement onto conveyor belts."
Senior Business Writer Richard Mize has covered housing, construction, commercial real estate and related topics for the newspaper and Oklahoman.com since 1999. Contact him at [email protected]. Sign up for his weekly newsletter, Real Estate with Richard Mize. You can support Richard's work, and that of his colleagues, by purchasing a digital subscription to The Oklahoman. Right now, you can get 6 months of subscriber-only access for $1.
This article originally appeared on Oklahoman: Oklahoma watches as UPS turns to automation in closing facilities