Digi-Key opens a second North American distribution centre
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A labour shortage and a lack of warehousing space has convinced Digi-Key to expand its distribution operations to include a second site. That site is in Fargo, North Dakota, not quite a stone's throw from the company's Thief River Falls headquarters in Minnesota (pictured).
The Fargo site – which has been ramping over the last few months – is now fulfilling around 10% of all Digi-Key orders; some 1500 shipments per day. When the first order was shipped from Fargo, it was the first time in 40 years that Digi-Key had dispatched something from anywhere but Thief River Falls.
While Thief River Falls stocks around 1million different parts, the Fargo site is only holding 50,000 – but these are amongst the most popular items ordered from Digi-Key. But it's not just order fulfillment; Digi-Key has also moved a large part of its receiving operations to Fargo, where a major expansion of the buildings is underway. The site is said by the company to be set to play a 'major role' in its future.
The reason for the Fargo move is said to be simple; Thief River Falls only has a population of 8700 and Digi-Key has been struggling to fill the positions it has open.
