Distributor Ingram Micro is expanding its South Auckland distribution centre, increasing its footprint by more than a third and nearly doubling capacity for goods handling.
With a spike in demand for IT products and solutions, the upgrade not only caters for the company’s established technology distribution business but provides headroom for its commerce and lifecycle services division (CLS) which offers contract third party distribution, logistics and value-added services.
Managing director Jason Langley said that in expanding the company’s warehouse area by just 35 per cent, it has achieved an 85 per cent increase in useable space.
“By covering the breezeway where vehicles enter the building, we have more space to move around regardless of the weather, allowing for faster goods handling as it is processed in the driveway," he said.
"Furthermore, we have introduced new shelving and racking solutions which stack higher; the vertical expansion substantially increases warehouse capacity.”
Langley, who last week outlined an array of new partner services, said the COVID-19 lockdown demonstrated the lasting value of holding inventory.
While modern distributors have optimised supply chains with "just in time" logistics, including direct shipping from manufacturer to end user where possible, the pandemic had shown that those who have inventory will move it.
"The unexpected pressure which came with lockdowns both locally and internationally reinforced the classic value proposition of the distributor – which is to have inventory available for resellers when and where they need it," Langley said.
Internationally, Ingram Micro distributes and supports products and solutions for 1700 suppliers.
Langley said Ingram Micro had partnered with or is in the process of forging relationships with multiple additional vendors locally, so the expanded capacity of the warehouse provided ample capacity for these new products and solutions.
“With CLS, we are expecting increased demand on our infrastructure as new clients in multiple industries look to partner with a market leader in moving, supporting and managing the product lifecycle from manufacture, to sales, returns and end-of-life," Langley said.
"The expanded premises provides the necessary capacity, backed by our expertise and proven capabilities in bringing vendors closer to customers.”
Langley said while it had been a tough time for many industries, Ingram Micro was seeing considerable demand for mobility, work-from-home and other solutions, which was likely to persist.