VSE Corporation has announced the opening of its new distribution and e-commerce fulfillment center of excellence in the greater Memphis, Tennessee area.
The new 450,000 square-foot distribution center more than doubles the existing warehouse footprint of VSE’s Fleet segment, providing its Wheeler Fleet Solutions subsidiary the capacity required to meet growing demand for aftermarket products across its e-commerce fulfillment and commercial fleet customers.
The new center of excellence will support faster, same-day order-to-delivery times; allow for additional shipping carrier options; and continue to ensure the highest level of service for aftermarket parts distribution. The facility features a new warehouse management system (WMS) and automation technology to increase capacity and productivity, while ensuring customer order accuracy. Once fully operational, the center will stock more than 175,000 SKUs.
The Memphis, Tennessee area is one of the largest logistics hubs in the United States. Wheeler Fleet Solutions will remain headquartered in Somerset, Pennsylvania, a central distribution center supporting its other fleet and United States Postal Service (USPS) customers.
“The addition of our new distribution center is an important strategic milestone for our Wheeler Fleet Solutions subsidiary, one of the leading fleet-focused parts and services companies serving heavy, medium and light duty vehicles in the United States,” stated John Cuomo, president and CEO of VSE Corporation. “During the last four years, our commercial fleet sales have grown from approximately 10% to 40% of Fleet Segment revenue, driven by share gains across both commercial fleet and e-commerce fulfillment channels. Looking ahead, we anticipate this distribution center will contribute more than $50 million in new, incremental sales to our Fleet segment in 2023.”
“Demand remains high for our industry-leading aftermarket parts and services,” stated Chad Wheeler, Fleet Segment president. “This investment demonstrates our long-term commitment to e-commerce fulfillment, one that will help to ensure faster response and delivery times by bringing parts closer to our end-users, while positioning us to capitalize on sustained growth in market demand.”