Associated Wholesale Grocers Planning New Distribution Hub

Associated Wholesale Grocers (AWG) has revealed plans to construct a new all-in-one distribution hub in Hernando, Mississippi, that will employ almost 600 people, according to a published report. Pending incentive approval, the facility is slated to be completed in 2023.

“We are excited to be able to significantly expand what we stock and ship to our member stores while becoming more efficient and cost-effective in our operations,” David Smith, CEO of Kansas City, Kansas-based AWG, said in a release quoted by the Memphis Business Journal. “This new facility will be a critical component in our plan to build a safer, better and more efficient supply chain.”

AWG has teamed with Witron, a German food warehouse automation and order-picking systems company, on the product. The company’s systems will be used throughout the facility, with the aim of boosting efficiencies and accuracy, and reduce damaged product.

The wholesaler is now in the midst of finalizing incentives with Mississippi leaders on the local and state level and wrapping up its due diligence on the land acquisition, according to the Journal, which noted that the size of the facility and its address had not yet been made public.

The company’s existing distribution centers in Memphis and in Southaven, Mississippi, would ultimately be consolidated into the new facility, the publication reported.

“In our process, we looked at the adjacent states in the region and found that Mississippi has just what we need,” explained Smith. “They have a great site, the critical infrastructure, very supportive governmental officials, and a fantastic workforce to grow with us.”

AWG serves 1,100 independent grocer member companies and 3,000-plus locations from eight wholesale divisions.