Skechers California warehouse thinks big
What if your warehouse could improve its energy efficiency, consolidate floor space and improve its capabilities?
That’s what Skechers is trying to do in Southern California, as the company’s new warehouse will open in Moreno Valley in October.
The building will be one of California’s largest at 1.6 million square feet, and will consolidate the operations taking place in six other warehouses. The new warehouse will serve as the distribution hub for the United States and Canada.
AN INSIDE LOOK AT THE NEW SKECHERS WAREHOUSE
“This is the next generation of automation in logistics,” Iddo Benzeevi, president and CEO of Highland Fairview Properties, the project’s developer, told the National Real Estate Investor. “This building has the most advanced building-automation robotics coupled with being the largest green building of its kind in the United States, and probably in the world.”
SEE OTHER TOP WAREHOUSE STORIES IN THE SUPPLY CHAIN DIGITAL CONTENT NETWORK
Skechers is the second largest footwear brand in the United States, and its new $250 million warehouse building is a testament to the brand’s growth. The building stretches more than a half-mile at 2,900 feet long, and is 700 feet wide.
Energy efficiency is put at a premium in the building, as the warehouse uses a fresh-air climate control system instead of a traditional mechanical air conditioning unit.
The warehouse is built to meet the Green Building Council’s Leadership in Energy and Environmental Design Gold (LEED Gold) criteria. The warehouse would be the largest LEED-certified building in the nation if approved.
“It would be an unbelievable achievement to do a building of this size and even get LEED Silver,” says Benzeevi. “Smaller buildings are easier to build green, but when you’re doing something that can encompass 40 football fields inside, it’s not that easy.”
The Skechers warehouse will also take advantage of robotic inventory management, as the automated system from Japan-based Daifuku Co. will allow the company to move 20,000 pairs of shoes per hour.
Currently, Skechers is able to move about a third of that total, as the company processes 7,000 shoes per hour.
Biden establishes Supply Chain Disruptions Task Force
The US government is to establish a new body with the express purpose of addressing imbalances and other supply chain concerns highlighted in a review of the sector, ordered by President Joe Biden shortly after his inauguration.
The Supply Chain Disruptions Task Force will “focus on areas where a mismatch between supply and demand has been evident,” the White House said. The division will be headed up by the Secretaries of Commerce, Transportation, and Agriculture, and will focus on housing construction, transportation, agriculture and food, and semiconductors - a drastic shortage of which has hit some of the US economy’s biggest industries in consumer technology and vehicle manufacturing.
“The Task Force will bring the full capacity of the federal government to address near-term supply/demand mismatches. It will convene stakeholders to diagnose problems and surface solutions - large and small, public or private - that could help alleviate bottlenecks and supply constraints,” the White House said.
In late February, President Biden ordered a 100 day review of the supply chain across the key areas of medicine, raw materials and agriculture, the findings of which were released this week. While the COVID-19 health crisis had a deleterious effect on the nation’s supply chain, the published assessment of findings says the root cause runs much deeper. The review concludes that “decades of underinvestment”, alongside public policy choices that favour quarterly results and short-term solutions, have left the system “fragile”.
In response, the administration aims to address four key issues head on, strengthening its position in health and medicine, sustainable and alternative energy, critical mineral mining and processing, and computer chips.
Support domestic production of critical medicines
- A syndicate of public and private entities will jointly work towards manufacturing and onshoring of essential medical suppliers, beginning with a list of 50-100 “critical drugs” defined by the Food and Drug Administration.
- The consortium will be led by the Department of Health and Human Services, which will commit an initial $60m towards the development of a “novel platform technologies to increase domestic manufacturing capacity for API”.
- The aim is to increase domestic production and reduce the reliance upon global supply chains, particularly with regards to medications in short supply.
Secure an end-to-end domestic supply chain for advanced batteries
- The Department of Energy will publish a ‘National Blueprint for Lithium Batteries’, beginning a 10 year plan to "develop a domestic lithium battery supply chain that combats the climate crisis by creating good-paying clean energy jobs across America”.
- The effort will leverage billions in funding “to finance key strategic areas of development and fill deficits in the domestic supply chain capacity”.
Invest in sustainable domestic and international production and processing of critical minerals
- An interdepartmental group will be established by the Department of Interior to identify sites where critical minerals can be produced and processed within US borders. It will collaborate with businesses, states, tribal nations and stockholders to “expand sustainable, responsible critical minerals production and processing in the United States”.
- The group will also identify where regulations may need to be updated to ensure new mining and processing “meets strong standards”.
Partner with industry, allies, and partners to address semiconductor shortages
- The Department of Commerce will increase its partnership with industry to support further investment in R&D and production of semiconductor chips. The White House says its aim will be to “facilitate information flow between semiconductor producers and suppliers and end-users”, improving transparency and data sharing.
- Enhanced relationships with foreign allies, including Japan and South Korea will also be strengthened with the express proposed of increasing chip output, promoting further investment in the sector and “to promote fair semiconductor chip allocations”.