Kenco Logistics Services Touts 2008 Results

Chattanooga, TN — February 19, 2009 — Third-party logistics provider Kenco Logistics Services is touting its 2008 results, pointing to increases in revenue and warehouse space, as well as expanded services through organic growth and acquisition.

According to Gary Mayfield, Kenco's CEO: "More than $43 million in new revenue was generated in 2008, bringing our two year total to $65 million. Our recent acquisition of Salt Lake City-based ADC [American Distribution Centers] brings our total number of power units to 500 and boosts warehouse space under Kenco Logistic Services' management to more than 23.5 million square feet."

Mayfield said that during 2008 the company added 602,000 square feet at multi-client facilities in Avenel, N.J., and Kalamazoo, Mich. They join the Kenco network of 13 multi-client facilities in Chattanooga, Tenn., Covington, Ga., Chino, Calif. and Salt Lake City.

In 2008 Honeywell, Kohler and Roadtec joined the ranks of U.S. manufacturers using Kenco Logistic Services. The company also grew relationships with additional business from Whirlpool, Stryker, Electrolux and Audiovox. Within this new business is Kenco Logistic Services' largest facility to date, a 1.5 million square-foot mega-distribution center for Whirlpool in Columbus, Ohio.

"We wanted to diversify the IT solutions we offered our clients in 2008. We have many clients like R.J. Reynolds Tobacco Company (RJRT) that need a more independent solution so they could be more flexible in the marketplace," said Kristi Montgomery, Kenco's vice president of technology. "RJRT was seeking a third party logistics partner with experience in retail and specifically in promotional products. Kenco selected Manhattan ILS: Integrated Logistics Solutions, built on Microsoft .NET and Distributed Order Management."

Montgomery also noted that Kenco has selected Red Prairie's Warehouse Management System and completed a successful proof of concept. "With these new technologies, we differentiate ourselves by offering not only an advanced warehouse management solutions, but order management capabilities as well," she said.

Andy Smith, Kenco Logistics Services president and chief operations officer, said that other notable milestones during 2008 include the network-wide implementation of the company's Operational Excellence Programs. "Kenco Safety Management System continues to reduce our OSHA Recordable Rate and OSHA Lost-Time Rate for another consecutive year. We also had an increased emphasis on loss prevention of customer merchandise by creating a new security manager position," Smith said.

Smith added: "Our Kenco Quality Management System has allowed more than 60 facilities to be internally certified to ISO-9001:2000 standards. We continue the development of internal database, Kenco Financial Management System, to manage P&L, activity based costing, work standards and profile management activities that provide site-level and customer visibility to critical business intelligence.

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