Digi-Key opens expanded product distribution centre

Electronic components provider Digi-Key Electronics has celebrated the ribbon cutting of its product distribution centre expansion, increasing the footprint of the company’s headquarters in Thief River Falls, Minnesota, by over 204,000 m² for a combined total of more than 278,000 m². The new facility allows Digi-Key to pick, pack and ship nearly three times the previous daily average of 27,000 packages to customers in more than 180 countries around the world.

“This is a significant milestone for all Digi-Key employees and our community,” said Digi-Key President Dave Doherty. “Our new product distribution centre expansion will help us continue to deliver excellence to our customers for many years to come. As exciting as this expansion is for us, our hope is that our customers truly don’t notice a difference — the transition for them should be seamless and, if anything, result in an even better customer service experience than they are already accustomed to.”

The product distribution centre expansion features two primary conveyor systems to provide redundancy in the case of a breakdown and provide opportunities for future growth. There are over 43 km of automated conveyor belt in the new facility, and an average order will travel close to 10 km inside the building. The facility is nearly fully automated; the only task that is truly done by hand is the actual picking of parts.

The opening of the facility comes at a time of record growth for the company — Digi-Key wrapped up 2021 growing faster than ever before with a 65% growth rate, and bookings in 2022 are up more than 25% over last year. This year has also been one of the largest years for supplier additions for the company, with 250 suppliers already added for the year. Since construction began in 2018, Digi-Key has added 1500 suppliers and 1.5 million part numbers to its inventory.

The opening also coincides with Digi-Key’s recent appearance on Fast Company’s 2022 list of the Best Workplaces for Innovators, celebrating company cultures that empower employees at all levels to improve processes, create new products or invent new ways of doing business. This is the fourth annual list the organisation has compiled, and Digi-Key’s first appearance on the list.

Fast Company editors worked together with Accenture researchers to score nearly 1500 applications from around the world, and a panel of eight eminent judges reviewed and endorsed the top 100 companies. Digi-Key ranked No. 28 on the list, receiving special recognition for its steadfast commitment to encouraging innovation at all levels.

“Innovation is at the heart of everything we do,” said Shane Zutz, Vice President of Human Resources for Digi-Key. “Digi-Key exists to fuel technology innovation and ultimately the world’s ideas, and in order to continuously lead in enabling the world’s ideas, you need a team of brilliant innovators and thinkers. We’re proud to have more than 5200 innovative team members supporting our efforts across the globe and thank every one of them for making our workplace culture one to be celebrated and admired.”

Pictured: Chris Lauer, Vice President, Order Fulfillment, Digi-Key; Thief River Falls Mayor Brian Holmer; Dr Ron Stordahl, owner, Digi-Key; Dave Doherty, President, Digi-Key; Minnesota Department of Employment and Economic Development Commissioner Steve Grove; and Ramesh Babu, CIO, Digi-Key.