Texcel said the warehouse stocks industrial hose, hydraulic hose and flat goods inventory and will support one- to two-day delivery times for customers throughout much of the western United States.
The additions include Ingram Micro, one of the world’s largest technology distributors; Vertosoft, which specializes in public-sector technology sales; Liquid PC, a reseller-focused distributor; and QBS Software, a United Kingdom-based distributor of cybersecurity and enterprise software.
Tracy fire officials, Medline representatives, structural engineers and other specialists are assessing site conditions and developing plans that would allow employees to safely retrieve vehicles left at the facility during the evacuation.
The company said products previously distributed through the Tracy facility have been reassigned to other distribution centers and that most affected order lines have already been rerouted through its regional network.
While Medline has not disclosed the volume of lost inventory or provided a timeline for rebuilding the facility, the company’s ability to shift operations to secondary and tertiary facilities may limit customer disruptions.
As Amazon continues opening its logistics infrastructure to outside businesses, distributors and manufacturers are gaining access to one of the largest transportation networks in North America.
Distribution center productivity increased more than 7% during the quarter, the company reported.
Uline said economic conditions contributed to the company’s decision and noted that it had extended leases at facilities in Pleasant Prairie, Wis.
The report suggests wholesalers are becoming increasingly confident in replenishing inventories after several years marked by supply chain disruptions, excess inventory corrections, and economic uncertainty.
For distributors, that means transportation costs are likely to remain under pressure even if freight demand softens during the second half of the year.