Proving the Business Case for the Internet of Things

High tech growth fuels UPS North American expansion

Steve Rogerson
December 17, 2014
Growth in the high-tech, industrial manufacturing and retail industries has led to UPS adding three more buildings and expanding another four in North America. This has boosted its supply chain network size by about 100,000 square metres.

The new or expanded facilities are in: Mira Loma, California; Hebron, Kentucky; Louisville, Kentucky; and Toronto, Ontario, Canada. This is the second time in 2014 that the Mira Loma and Hebron campuses have increased in size.

"These investments are needed to not only support our existing customers and their growth but to also create capacity to support our new business expansion," said Stephen Hydrick, UPS vice president of North American distribution. "As our customers grow, we will continue to find and invest in solutions."

The company’s global supply chain network includes 596 facilities and about three million square metres. Services and capabilities offered at supply chain facilities include: warehousing and fulfilment; inventory, transportation and returns management; custom kitting and packaging; and store-ready displays. These modern facilities are critical for customers as 99 per cent of the US population is within a two-day time-in-transit of inventory.

After increasing the southern California campus by 28,700 square metres in April, the latest building in Fontana added an additional 21,000 square metres. The campus is one hour from the two largest seaports in the USA. It is also just five minutes from Los Angeles Airport, a UPS regional air hub. Total campus size of Mira Loma is now nearly 150,000 square metres.

The Hebron campus – considered a key logistics operation serving the retail industry – has access to 62 per cent of the US population within two days via UPS Ground and 64 per cent using UPS Freight. The campus increased in size in April, and added an additional 25,000 square metres with this investment. The campus is minutes from the Greater Cincinnati Airport.

The Shepherdsville, Kentucky, location increased by 56,000 square metres. The building is within 20 minutes of Louisville-based UPS Worldport, the largest fully automated package handling facility in the world.

The expansion also added 5700 square metres to the Mississauga-based facility, which is located less than ten minutes from Toronto's Pearson International Airport.