KC Distribution

KC DELIVERS: Optimizing Global Supply Chains from the Heartland

KC DELIVERS: Optimizing Global Supply Chains from the Heartland

Featured image courtesy of KC SmartPort.

Largest online wellness shopping club in North America to invest $35.5 million in KC

To better serve its customers and speed up delivery of its world-class health and wellness products, Melaleuca plans to open a 508,000-SF distribution center and warehouse at 11401 N. Congress Avenue in KC’s Northland.

As a manufacturer and online retailer of over 450 exclusive health and wellness products, Melaleuca will invest at least $35.5 million into the facility and create more than 200 jobs within its first year of operation. Melaleuca expects the facility to be ready in early 2022 after completing an extensive retrofit of the plant formerly owned by Harley Davidson.

Since it was founded in September 1985, Melaleuca has grown into one of America’s largest online retailers, offering wellness products in the categories of nutrition, personal care, home cleaning and cosmetics. Much like Amazon, Melaleuca customers order online, and products are shipped directly to the customer’s home.

“Our products are being enthusiastically embraced throughout the world. Although Melaleuca has experienced periods of explosive growth over the years, consumers are flocking to Melaleuca now more than ever because they are concerned about their family’s overall health. They are searching for effective, safe, natural health and wellness products, which is Melaleuca’s specialty. When it comes to their health, people don’t want to take shortcuts, and they are relying on Melaleuca’s superior product line to enjoy healthier, more vibrant lives,” said Melaleuca CEO, Frank VanderSloot.

Melaleuca anticipates this new distribution center will not only speed up online delivery for customers throughout the Midwest, but also enable faster e-commerce shipping across the country.

In combination with its state-of-the-art distribution centers in Idaho Falls and Tennessee, Melaleuca is creating a logistics network so its products can reach the majority of its U.S.-based customers within two days of ordering.

“Melaleuca’s expansion into Kansas City, Missouri is significant for our community, and the new jobs created will help more Kansas Citians prosper through these challenging economic times,” said T’Risa McCord, interim president CEO of the Economic Development Corporation of Kansas City, Missouri.

“In the last 12 months, companies including Melaleuca, Inc. have selected the KC region to create more than $1 billion in capital investment and over 3,700 jobs,” said Tim Cowden, president and CEO of the Kansas City Area Development Council.

In early 2021, Melaleuca plans to hire plant administration and other leadership as the facility is being renovated. Candidates will be able to apply at MelaleucaJobs.com.

“The KC SmartPort team continues to position Kansas City’s advantages as a logistics hub including our region’s location, available workforce, community benefits and vertical readiness,” Cowden said.

PepsiCo joins Logistics Park Kansas City

PepsiCo Global will soon be moving into the state-of-the-art Inland Port VII building at Logistics Park Kansas City (LPKC), a 3,000-acre, master-planned distribution and warehouse development in Edgerton, Kan.

“PepsiCo chose Edgerton and LPKC because they can see the clear advantages of locating at the premiere logistics and distribution center in the Midwest,” said Edgerton Mayor Donald Roberts.

PepsiCo signed a lease for the 952,956-SF space, where the global food and beverage company plans to distribute their popular Gatorade product line.

“PepsiCo/Gatorade is an excellent addition to the Edgerton business community. LPKC is a convenient, versatile hub that can meet the needs of any company’s supply chain. Edgerton’s proximity to key services and partners is one of the main reasons businesses experience success at LPKC,” said ElevateEdgerton! president, James Oltman.

Built by Northpoint Development, the facility was the largest speculative building in the Kansas City metro and in the state of Kansas when it was completed earlier this year. JLL managing director, Kevin Wilkerson, and executive vice president, Phil Algrim, represented NorthPoint in the negotiation.

“Inland Port VII is the latest delivery in a long line of industry leading logistics products, bringing together accessibility to quality labor and cutting-edge technology in one centralized location,” Wilkerson said.

Since 2013, LPKC has amassed over 14.4 million SF of industrial space for over twenty tenants; work has already started on the next spec industrial building at LPKC.

About PepsiCo: PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $67 billion in net revenue in 2019, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including 23 brands that generate more than $1 billion each in estimated annual retail sales.

COVID-19 spurs new distribution, fulfillment growth in Kansas City

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MWM guest columnist, Chris Gutierrez, is the president of Kansas City SmartPort, a non-profit economic development organization that works to attract freight-based companies, such as manufacturing, distribution and warehouses to the 18-county, bi-state Kansas City region.

Gutierrez has been active in logistics, international business and economic development for more than 30 years.

He joined KC SmartPort as president in 2003 and oversees all aspects of the organization, while providing thought leadership to the supply chain industry in KC and nationally.