Retailer chooses not to outsource distribution center to a 3PL

Urban Outfitters, a retail chain, has a unique supply chain. They opened a distribution center in Reno Nevada to serve the western US. The warehouse is currently 175,500 square feet and can be expanded to 429,000 square feet. There is an advanced material handling system in the warehouse with a pick-to-light system for automated piece and carton picking. 

What makes them different is that they run the warehouse and not a 3PL. In 1998 Urban Outfitters used a 3PL, but has decided to not outsource that function. Ken McKinney, director of distribution at Urban Outfitters stated, concerning not using a 3PL, “Speed to market is a competitive advantage.” He also stated “I’m responsible for reducing the time from when it hits the port until it gets to the store. I knew we’d have more opportunities to do that ourselves than if we rely on a third party.”