The Friday Report Blog: April 14th, 2023

Quick wrap up of a few hot topic newsworthy stories in the supply chain logistics industry

Toyota Distributor to Increase Capacity at Jaxport

Southeast Toyota Distributors (SET) recently signed a $210 million lease to consolidate operations at the Jacksonville Port Authority. This will enable to company to increase capacity so that it can accommodate more vehicles as well as strengthen operational efficiencies.

SET currently utilizes a 50-acre facility at the ports Talleyrand Marine Terminal and a 23-acre private facility for its operations. However, the partnership will enable the company the relocate to an 88-acre facility at Blount Island Marine Terminal. This terminal is expected to be completed in 2024.

As part of the lease agreement, the Florida Department of Transportation will provide a $16.5 million grant to assist with the development of the terminal. Upgrades include a berth expansion that will enable the terminal to accommodate two vehicle ships instead of one. Additionally, SET will provide $16.5 million to upgrade two processing buildings and build new on-site rail connection and truck loading areas.

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Walmart To Spend More on Robots and E-Commerce

During Walmart’s annual investors meeting, the company announced that it expects that nearly 90% of its capital expenditures will go towards investment in e-commerce and automated order fulfillment technology. In the meeting, the company also shared that within three years, 55% of its fulfilment center volume will be handled by automated facilities. In addition, the company predicts that 65% of its stores will be partially or fully automated.

These announcements come as the retail giant stakes it growth in its massive brick-and-mortar network that includes over 5,300 locations around the world. Walmart feels that this is beneficial to its growth, particularly in the U.S. because the company uses its stores to fulfill e-commerce orders. Currently, Walmart’s inventory is positioned within 10 miles of 90% of the U.S. population. With 4,700 points of distribution across the nation, Walmart can speed order fulfillment, shorten the last mile, and lower delivery times for e-commerce consumers.

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7-Eleven Supplier Plans $81.5 million Ohio Plant

Warabeya Nichiyo Holdings, a 7-Eleven supplier that provides the company with ready-to-eat foods has announced that it will open another production facility in the United States. The 140,000 square foot, $81.5 million Ohio plant will be the company’s third U.S. facility, joining locations in Hawaii and Texas.

The new facility is expected to open in December 2024 and will provide 2,500 7-Eleven and Speedway stores across the Midwest with pre-packaged food items such as burritos, sandwiches, light meals, and bread products. The company hopes that the new locations will shorten the supply chain, enabling quicker and cheaper services to its Midwest stores.

7-Eleven has over 79,000 stores across 20 countries, with 20,00 located in Japan and 13,000 across the U.S.

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