Maersk is expanding its relationship with PUMA by taking over the management of three highly automated U.S. distribution centers — all operating with AutoStore systems.
The three facilities, located in California, Arizona and Indiana, total approximately 2.3 million square feet and support PUMA’s wholesale customers, retail stores and e-commerce business.
According to Maersk, the company has now begun managing PUMA’s North American distribution network as part of a broader logistics partnership between the two companies. Maersk already provides PUMA with a range of services including transportation, air freight, customs, warehousing and distribution.
The three facilities are:
Torrance, California — approximately 672,000 sq. ft.
Phoenix, Arizona — approximately 1.02 million sq. ft.
Whitestown, Indiana — approximately 636,000 sq. ft.
All three facilities use AutoStore as part of their fulfillment operations.
Maersk Takes Over an Existing Automated Network
One of the more interesting aspects of the announcement is that Maersk is not moving into three conventional warehouses and introducing automation.
The automation is already there.
PUMA has been using AutoStore in its U.S. distribution network for a decade, beginning with its Torrance operation in 2016. The company subsequently expanded its AutoStore footprint as its U.S. business and fulfillment requirements grew.
Maersk is now taking responsibility for operating that existing automated infrastructure as part of the larger PUMA distribution network.
The objective is to improve the performance of the facilities, increase efficiency and reduce costs while supporting the different requirements of wholesale, retail and e-commerce fulfillment.
For Maersk, this means managing considerably more than warehouse space and labor.
Operating facilities of this scale requires the coordination of automation, software, inventory, people and transportation as one integrated fulfillment operation.
Torrance to Become a Multi-Client AutoStore Operation
Perhaps the most interesting part of the announcement is what Maersk plans to do with PUMA’s Torrance facility.
Beginning in 2027, Maersk plans to make available capacity at the facility accessible to other customers.
According to Maersk, Torrance will become the company’s first AutoStore deployment in North America supporting multi-client operations. The facility will be capable of handling approximately 20 million units of throughput annually.
That represents an interesting evolution for the facility.
The AutoStore system that has been supporting PUMA’s fulfillment operation can now potentially become part of a broader shared fulfillment platform operated by Maersk for additional brands.
For companies that require sophisticated automated fulfillment but may not have the volume, capital requirements or operational resources to justify their own dedicated automated facility, multi-client automation could become an increasingly interesting 3PL model.
Automation Is Changing the 3PL Business
Maersk operates more than 70 fulfillment facilities representing approximately 22.5 million square feet across North America, and more than 500 warehouses globally.
Taking responsibility for PUMA’s three AutoStore facilities illustrates how the requirements placed on large 3PL operators continue to evolve.
As more manufacturers and retailers install sophisticated warehouse automation, the companies eventually operating those facilities need to understand much more than traditional warehousing.
They increasingly need the operational and technical capabilities to manage robotics, warehouse software, automation controls, inventory flow, workstation performance and transportation as part of one connected operation.
That makes the PUMA agreement particularly interesting.
PUMA has already made substantial investments in its U.S. distribution infrastructure and AutoStore automation.
Maersk’s job now is to operate that infrastructure effectively, improve its utilization and find additional value within the capacity that already exists.
The planned multi-client AutoStore operation in Torrance may be one of the more interesting examples of where that strategy can lead.
DHL Supply Chain is now operating a fully-automated robot picking system at a logistics center in Staufenberg Germany