FEMSA Group, Colgate-Palmolive, Solistica and OMEGA invested MX$500 million (US$24 million) in the expansion and operation of Colgate’s distribution center in San José Iturbide, Guanajuato.
The Colgate-Palmolive distribution center is now the brand’s biggest worldwide. It created 1,562 jobs and is responsible for the dispatch of 50 percent of Colgate’s inventory in Mexico. 3PL logistics firm Solistica was appointed to manage the center’s operations for the next five years, according to a FEMSA press release.
"I want to thank Colgate for its confidence to continue growing with us as we seek to generate value together. Achieving projects of this magnitude reinforces our commitment to our customers’ business, understanding their needs and not only meeting them but seeking to exceed them. This is how we are moving towards our vision of being the preferred 3PL partner in Latin America," said Luis Eraña, CEO, Solistica.
The 100,000m2 distribution center has a warehousing capacity for over 131,000 pallets and is expected to dispatch approximately 58 million boxes per year, or the equivalent to half of Colgate-Palmolive’s products in the country. The distribution center also counts with 10m-tall, double deep pallet racking, which allows six vertical storage levels. The facility includes electric installations using LEED technology in energy-saving lighting fixtures and a water treatment plant.
The center has an internal capacity of 6,000 km2 for assembly operations and counts with state-of-the-art forklifts operating with lithium batteries, allowing more time usage while eliminating any additional processes. The forklifts include a camera that facilitates precision in the positioning of the pallets in the racks.
“This fantastic project enhances the name of our company and once again demonstrates that together we are building an unstoppable Colgate-Palmolive Mexico,” said Massimo Poli, Vice President and General Manager, Colgate-Palmolive Mexico.
While the company used to operate mainly from Mexico City, real estate prices increased as space in the city became scarce, leading the large companies to switch operations to Guanajuato, according to Victor Lachica, President & CEO, Cushman & Wakefield Mexico and Central America. “Colgate was able to move to Guanajuato and invest in a Triple-A facility, as well as pay to relocate some of its expert technicians as a result of the profit it made,” Lachica told MBN.
The center’s expansion has created 690 direct jobs in warehouse and assembly operations with an additional 530 opportunities for 32 local logistics companies to cover the company’s supply circuits.