VOL. 128 | NO. 22 | Friday, February 1, 2013
New Breed Expands Memphis Footprint
By MICHAEL WADDELL
New Breed Logistics recently announced plans to expand its Memphis operations with an investment of $23 million that will create 468 warehouse and distribution jobs.
The privately held 3PL company helps businesses design and operate efficient supply chains. Its newest facility will consist of 404,000 square feet at 4585 Quality Drive, and the company will also significantly expand operations inside its facility at 4895 Citation Drive.
The expansion means New Breed, which is based in High Point, N.C., now has six facilities in the Memphis market.
“We are now the largest third-party logistics provider in Memphis, both for employee head count and overall square footage,” said New Breed vice president of marketing and communications Joe Hauck. “Memphis is obviously a very strategic location for us. We’ve been in Memphis since 2001, and we’ve built an infrastructure of management personnel and distribution center operations personnel.”
The $23 million will be used to ramp up the company’s local workforce and outfit the facilities with new technology and automation. The company’s area presence is now close to 3 million square feet, and once the expansion is complete New Breed will employ approximately 2,250 people in Memphis. Worldwide, the company manages warehouse space at more than 75 distribution centers and employs nearly 8,000 people.
“Memphis is obviously a very strategic location for us. We’ve been in Memphis since 2001.”
New Breed Logistics, vice president of marketing and communications
“This major expansion is prompted by a new contract we’ve gotten from an existing client,” Hauck said. “We are outfitting the inside of the facilities with various types of material handling equipment as well as the other types of automation and equipment needed for the operation.”
New Breed’s diverse client list in the Memphis area includes Siemens Medical, Avia, Logitech, Laerdal Medical and Boeing, and the company also handles all of Verizon Wireless’s handset returns at its facility in Fort Worth, Texas.
One of the highlights of the company’s history was working with the U.S. Postal Service to revamp its entire supply chain network during the 1990s, and at the time it was the largest government logistics contract that had ever been given out.
“The government accounting office said that we saved them more than $500 million by redesigning that supply chain for them,” Hauck said.
Over the past seven to eight years, New Breed has been experiencing double-digit growth each year.
“I would certainly expect that we will continue the growth rate in Memphis as well as in other parts of the country,” Hauck said.
New Breed’s services range from distribution center operations and transportation management to highly sophisticated, technology-enabled solutions for product assembly, reverse logistics and repair, lean manufacturing support, materials management, procurement and aftermarket services.
Hauck expects to see further expansion for New Breed in Memphis.
“I think it is likely that we will have more locations,” Hauck said. “Many of our clients come to us and continually ask us to do more for them because of the level of quality that drive into their operations and how we help them grow their business. So much of our business really comes from existing clients asking us to expand on their operations.”
Boeing is one example. New Breed has grown its business with Boeing over the past several years from one contract to now more than 20.
“We’ve really become a leader in the aerospace logistics business,” Hauck said.
Having later FedEx drop-off times in Memphis is a huge plus for New Breed’s business, since it means potentially an extra four hours to get products shipped out compared to East Coast locations, where the cutoff time is 9 p.m. compared to midnight here (plus the one hour time zone change).
“By gaining four hours over the East Coast, it means that so many orders can still be received that can still ship that night for delivery the next day,” Hauck said. “Nowhere else in the country can we get such a late cutoff, and that is very important to many of our clients.”
In addition to the city’s logistical prowess, he cites the area’s business environment, stable infrastructure and availability of a workforce with the right skills as primary factors for why Memphis is a great fit for New Breed.
“Memphis is the distribution capital of the U.S. As a result there is a very solid, experienced workforce in the area, and the availability of distribution operations people is much larger than anywhere else in the country,” Hauck said. “It is one of the ideal places to set up this type of operation.”