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With its new fulfillment center in Mt. Juliet, Wilson County, Chewy is taking its commitment to customers and the economy to a whole new level through the recent advancements in warehouse automation and warehouse Wi-Fi.
Chewy, Inc. is an online retailer of pet food and other petcare products. In May 2017, Chewy raised $300 million in its initial public offering, valuing the company at $3 billion.
Chewy has fulfillment centers across the United States and the new fulfillment center for Tennessee comes at an opportune time. With other retailers shutting down warehouses all across the country (Amazon, Walmart), Chewy is turning things around with a different approach to increasing productivity, and that’s via warehouse automation. This is exciting news for not only the pet-loving community of Middle Tennessee but also for the region’s economy as this center is projected to create roughly 1,200 jobs.
Ryan Cohen, Chewy’s co-founder and CEO, announced his excitement for the new expansion. This location will allow Chewy to serve customers better by getting their orders to them faster. The new center is located in Mt. Juliet at the intersection of Couchville Pike and Maddox Road.
Benefits of the New Fulfillment Center for Tennesseans
Chewy announced previously that it would set up at least two additional automated fulfillment centers. The goal is to decrease cost while being able to expand capacity. “When we think about the future of our fulfillment network, automation is at the center of that. It lowers the cost, it improves safety, it increases capacity,” said Chewy CFO Mario Marte.
Many companies have faced the challenges of the increased cost to labor within their warehouses. That is managing expectations of salary increases while also mitigating risk to floor staff in their day to day work.
Automation allows warehouses to expand and increase productivity due to the massive improvements in robotics within the past 5 years. These new robotics, such as the Locus Robotics AMRs also reduce risk to employees by reducing the need for repeated travel across the operating floor. Automation is here to stay and the growth opportunities are looking good. The revenue from robotics in warehouses is forecast to reach $51 billion by 2030.
Warehouse Wi-Fi
In order to facilitate the wireless operation of warehouse robotics and warehouse control systems (WCSs), there needs to be a proper Wi-Fi network in place that is robust enough for the equipment being used. This is not the standard home or small office type of wireless access points. Warehouse Wi-Fi aka industrial wireless communication (IWC), uses equipment capable of handling Industry 4.0. This allows for more predictable performance as well as better quality of service.
How Warehouse Wi-Fi and Automation is Growing the Economy of Middle Tennessee
The new center will allow Chewy to more efficiently fulfill orders to its customers in the Southeast region of the United States. In turn, this will lead to faster delivery times and cost savings for the company. Savings that can hopefully be passed on to the consumers.
The impact of Chewy’s new fulfillment center goes beyond just the company itself. The facility will also help to spur economic growth in this region by creating jobs in Middle Tennessee.
In addition, the new center will further solidify Tennessee as a key player in the logistics and transportation industries. With its central location and robust infrastructure, Wilson County is well-positioned to become a major hub for these industries.
The Petcare Industry is Expected to Grow
The new Chewy fulfillment center will help meet the rising demand for pet food and supplies from online shoppers. The company has seen significant growth in recent years, as the petcare industry continues to grow. The global petcare market size, previously valued at 150.67 billion in 2021 is expected to grow at a CAGR of 5% from 2022 to 2030. With its expansion into Tennessee, Chewy is positioned to continue serving pet owners across the country.
