UNFI launches automated distribution center in Florida

Dive Brief:

• United Natural Foods, Inc. has opened a new distribution center in Sarasota, Florida, incorporating advanced automation technology to enhance order accuracy and efficiency, as announced on Tuesday.
• The newly implemented equipment aims to improve UNFI’s service capabilities for grocers, while simultaneously reducing operating costs and enhancing employee working conditions.
• Construction on the distribution center began in mid-2023, following the company’s commitment to revolutionizing its supply chain through investments in automation technology.

Dive Insight:

The facility spans 1 million square feet and is the first UNFI distribution center to utilize Pick-it-Easy robots from the logistics provider Knapp. These robots leverage artificial intelligence to assess the physical attributes of goods for efficient handling. The center also employs a Knapp system that delivers products straight to the workers.

In its announcement, UNFI highlighted additional automation enhancements across its other distribution locations, including Centralia, Washington, and Carlisle and Manchester in Pennsylvania.

Over the past two years, CEO Sandy Douglas has driven a “transformation agenda” at UNFI to address operational deficiencies that surfaced in 2023 and resulted in a significant drop in profitability.

Despite progress on improving its operations, the company faced costly challenges. In June, a cyberattack forced UNFI to temporarily shut down its online ordering systems, significantly hindering its ability to fulfill retail orders. This intrusion is anticipated to lead to at least $350 million in lost sales.

Furthermore, UNFI revealed in June that it had mutually agreed to terminate a multi-year distribution agreement with Key Food, which was projected to generate $10 billion in sales over ten years. This decision will similarly result in the closure of a distribution center in Allentown, Pennsylvania.

Key Information:

• UNFI opened a new 1-million-square-foot distribution center in Sarasota, Florida, featuring automation technology.
• The facility employs over 400 people and marks the debut of Pick-it-Easy robots by Knapp for UNFI.
• Recent operational challenges included significant profit declines and a cyberattack costing an estimated $350 million.
• UNFI is pursuing a transformation agenda aimed at improving supply chain capabilities and overall performance.