ODW Logistics has expanded its Central Ohio footprint with a new retail distribution center in Lockbourne.
The third-party logistics provider, one of the region's largest privately held companies, is leasing a 540,000-square-foot facility at 1533 Rohr Road near Rickenbacker International Airport. With the expansion, Columbus-based ODW now has more than 4 million square feet of warehouse space in Central Ohio.
ODW describes the facility as a "retail consolidation center" where multiple shippers can combine freight shipments in one location. Consolidating operations cuts transportation expenses by reducing the number of shipments and truckloads, which creates a value proposition for clients, ODW CEO John Ness said.
“The intent is to bring the freight efficiencies associated with full truckload shipping and make them available for clients with (less-than-truckload) and partial truckload orders," Ness said. "This improves service and lowers our clients' overall cost.”
By combining freight with other shippers, Ness said clients can better scale their businesses. He added the value proposition this creates helps set ODW a part from other businesses in the logistics space.
"This is something we've been working on for many years, so we're really excited about what this facility will bring to the marketplace," he said. "Retail consolidation itself isn't a new endeavor, however, the advancement in technology has made it much more readily available for (third-party logistics providers) like us that have the capacity to execute it."
Ness declined to share exact cost figures, but he said ODW "invested heavily" in the technology required to perform this work at the new facility. The company also invested in interior renovations to the building to prepare it for retail consolidation work.
The facility employs 100 people, which Ness said is a combination of new and existing workers. As operations ramp up, Ness said ODW will look to hire additional employees at the center.
ODW is stocking the building with inventory and plans to start shipments in November. Though the facility isn't fully operational, Ness said the company is already making plans to open a second retail consolidation center.
The Lockbourne site will ship personal care items for customers such as Walmart, Target and Dollar General. The second center ODW is planning will focus on food shipments. Ness said plans for that center haven't been finalized, but it will be located in Central Ohio.
Beyond its 4-million-plus square feet of distribution space in the Columbus area, ODW has operations in Toledo and Dayton, as well as Los Angeles, Chicago, Atlanta, Memphis and Milwaukee. In total, the company operates 31 distribution centers that measure a combined 8 million square feet and employ 2,100 people.
In Central Ohio alone, ODW has 14 distribution centers and employs more than 1,100 people, making it one of the region's largest employers. The company's 2022 revenue was $367 million, which ranks it among the 25 largest private companies in Central Ohio, according to research by Columbus Business First.
Source: Columbus Business First
https://www.bizjournals.com/columbus/news/2023/10/12/odw-logistics-retail-distribution-center.html