ue to the crossroads of three interstates, Rutherford County has become a warehousing and distribution hub.supply chain management

Holly Sears

English

Research Papers in Economics

8
DISTRIBUTION MECCA O
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OF THE SOUTHEAST
upply chain management is the process of
planning, implementing, and controlling
supply chain operations to satisfy cus-
tomer requirements as efficiently as possible.
The process spans all movement and storage of
raw materials, work-in-process inventory, and
finished goods from point of origin to point of
consumption. The term itself was coined by
consultant Keith Oliver of the strategy consult-
ing firm Booz Allen Hamilton in 1982.
Rutherford County continues to be a hub
for companies dedicated to supply chain man-
agement. Due to the crossroads of Interstates
24, 40 and 65, it has become a warehousing and
distribution headquarters, with companies such
as Ingram Books, Hollywood Video, and
Waldenbooks establishing hubs here. 
Rutherford County, particularly the La
Vergne and Smyrna area, has become well-
known as a southeast distribution mecca due to
location and available facilities offering cross-
dock and warehouse space. Several international
development companies have descended on the
midstate area to develop speculative facilities in
response to demand from distribution/logistics
companies. ProLogis, based in Denver, operates
nearly two million square feet in the market.
Sacramento-headquartered Panattoni Develop-
ment Company completed 1.5 million square
feet of space in 2005. Tech Park in La Vergne,
developed by Nashville-based Knestrick Con-
tractors, will soon start construction on a new
facility to add to their growing portfolio of
distribution facilities in the area. Crescent
Resources has recently completed a 497,500
square-foot facility to meet demand for large
bulk distribution space. Its new park, Centre-
Pointe, covers 260 acres and can accommodate
up to a million square feet in one facility. 
Another driving force in supply chain man-
agement is third-party logistics (3PLs). The
availability of 3PLs such as Ozburn-Hessey
(OH) has been attractive to companies looking
to locate in the Rutherford County area. Based
in Tennessee, OH Logistics is one of the
nation’s largest privately held 3PLs, serving
Fortune 1500 companies with strategically
placed, multiclient warehouse campuses as well
as numerous dedicated facilities. The company
serves industries such as food service consoli-
dation, electronics, technology, pharmaceuti-
cals, medicine, health and beauty, and consumer
products. OH Logistics provides services
including fulfillment, e-commerce fulfillment,
service parts management, return logistics,
cross-docking, and pool distribution.  The com-
pany operates more than 20 million square feet
of warehouse space nationwide; offers complete
transportation management of parcel, LTL (less
than truck load), and TL shipments; and
employs more than 3,000 workers. 
It is easy to see why Rutherford County,
with the above combined assets, is such a suc-
cess. Location is one aspect of its success in dis-
tribution, but the high quality of life, pro-
business climate, and skilled workforce also
drive decisions. In 2005, Rutherford County
ranked at the top in the country for new job
growth. Distribution companies accounted for
many of the new jobs; manufacturing and the
service industry also contributed to the high
growth rate. New distribution companies to
locate in the community in 2005–2006 included
Hot Topic, Pratt Industries, MotorCar Parts of
America, ModusLink, Interstate Warehousing,
and Federal Mogul, reflecting the diversity in
the distribution market. Just-in-time logistics
and location continue to be a driving force when
companies are making decisions in response to
supplier/customer demand. Courses offered at
MTSU, Motlow State Community College, and
the Tennessee Technology Center in Murfrees-
boro give Rutherford County yet another com-
petitive edge: skilled workforce. 
Holly Sears is the vice president of economic
development for the Rutherford County Cham-
ber of Commerce.
Due to the crossroads of three interstates, Rutherford County has
become a warehousing and distribution hub.
by Holly Sears
S

Distribution Mecca of the Southeast: Rutherford County

http://www.mtsu.edu/~berc/tnbiz/supply/sears.pdf

Distribution Mecca of the Southeast: Rutherford County

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