Chewy to open a new automated fulfillment center in Nashville
The American online pet retailer confirmed to GlobalPETS that it plans to launch a second facility within the next 15 months to cut freight costs.
Chewy says the automated fulfillment center network is processing an ever-larger percentage of its outbound shipping volume at lower costs.
To further reduce expenses, increase efficiencies, streamline operations, and improve customer experience, the company is investing in opening several automated fulfillment centers in 2023 and 2024.
“We look forward to opening 2 new automated fulfillment centers within the next 15 months. The next location will be opening near Nashville, TN, in 2023,” Diane Pelkey, Chewy’s Head of Communications & PR, told GlobalPETS.
Cheaper and quicker
In the third quarter of 2022, Chewy dispersed approximately 30% of its volume from its automated fulfillment center networks. This is up 10% compared to the same period in 2021.
In a recent letter to shareholders, Chewy stated that technology and planning capabilities had bettered its “in-stock levels across the network,” and average shipping distances have been slashed by 25% in comparison to the same period to 2021.
Additionally, its import-routing facilities are set to increase inventory distribution across the fulfillment center network and decrease inbound shipping expenses.
The online pet retailer posted net sales of $2.5 billion in the third quarter ending 30 October 2022. Earlier in the year, the company cut its outlook revenue prediction for the rest of the year.
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