According to a report by SemiMedia on March 26, 2018, Digi-key was planning to expand its warehouse in Thief River Falls, Minnesota. The expansion project has been implemented and further progress has been made.
Recently, Digi-Key signed a cooperation agreement with Knapp to build an automation system for the new warehouse. As the automation partner of the project, Knapp's main project goal is to provide Digi-Key team members with a clean, modern, efficient, safe and people-oriented work environment. The facility will feature a modern lounge, staff facilities and an open work environment to enhance the experience of Digi-Key team members. It will also include efficient equipment and modern environments and lighting systems to reduce the impact on the environment.
Currently, the new 2.2 million square foot Digi-Key expansion facility is under construction and will begin to use Knapp's new automation system for component storage and order shipments starting in 2021. By then, Digi-Key's warehouse will have a total storage capacity of 2.7 million SKUs. In addition, the system will use more than 1,000 shuttles to support order fulfillment and service customers. Combined with other storage and transportation media included in the overall system design, Digi-Key's online electronic components distribution market will remain in a leading position to meet the immediate delivery needs of customers.