kentucky sort center

HKL leases and operates a 598,000 square foot cross dock automated sortation center in Hebron, KY. The facility receives parcels from order fulfillment centers and sorts to intermediate destination hubs with 99.95 percent accuracy and real-time tracking.

Key Business Issues

• Holiday peak capacity 3X Thanksgiving to New Years Day
• Time constraint from concept to construction to operation
• Manual operation 10% to 15% error sort rate
• IT connectivity, interfaces and support issues

HKL Solution

• HKL provided initial capital investment
• State of the Art Scalable Automation
  • Labor saving case sorter and flats sorter for 1X period
  • Labor augmented capacity for peak 3x period
• State of the Art Information Technology
  • Software directed associate workflow movement for containerized and piece level shipments
  • 100% real time market destination verification (RF network)
  • Software generated OS&D, production flow, on-time analysis, and shipping manifests

Client Return

• Avoided a $35M capital spend for the competing internal solution.
• Reduction in lost parcel processing, product replacement cost, and premium shipping expense.
• Additional transportation cost savings through presorted final mile smart post injection.
• Avoided major out of process UPS spend to meet 2010 peak requirements.