Lead photo: Cummins’ Replenishment Center in Whiteland, IN.

Two weeks after news surfaced that FedEx will lay off more than 600 employees at two Cummins distribution centers in Memphis, a new report has identified where the truck engine maker is relocating those operations.

Citing an email statement from a company spokesperson, Supply Chain Dive reported Sept. 8 that Cummins is moving part of its aftermarket parts distribution — currently run by FedEx Supply Chain — to a facility in Indianapolis, IN.

That relocation is expected to be complete in October, and that a different 3PL will run the Indianapolis facility, the report said.

“We are retaining a portion of the business at this location,” FedEx told Supply Chain Dive. “Team members at this facility were notified in advance and many will be eligible for other roles within the company.”

The email cited Cummins’ “need to improve efficiency and better support our customers,” as the why behind the relocation.

The move will result in the layoff of 611 FedEx Supply Chain employees at adjacent Cummins warehouses in Memphis.

FedEx has run Cummins’ Memphis distribution operations since 2019, dispersing the company’s component parts, rebuild kits and remanufactured engines.

The news of the layoff figures comes about 14 months after Cummins said it would move some operations from its Memphis master distribution center to a new replenishment center in Indianapolis. Cummins leased about 1 million square feet of logistics space at a new facility in Whiteland, IN — a suburb south of Indianapolis — in the spring of 2024.

Here’s what the company said back in July 2024:

“In order to better serve our customers, we need to transform our North America Aftermarket logistics network. By deploying new capabilities, it allows Cummins to better support our customers’ growing product needs, improves operational efficiency and aligns with future company growth and expectations

“Cummins reviewed our existing network and its ability to support our current customers. The network was modeled based on inbound supply and outbound demand needs. After identifying the need for more than one Master Distribution Center (MDC) in the United States, data revealed Indianapolis, IN as one of the two locations to provide the best cost/service/continuity mix in a two-center model.

“The first two phases of this transformation, are already underway, and include standing up a new replenishment center in Indianapolis, Indiana. As we move into the final deployment of capabilities at the IRC (Indianapolis Replenishment Center), there will be some continued impact on suppliers who are supplying parts to our Memphis Distribution Center. These suppliers will start receiving PO releases for part numbers to begin shipping into the new IRC.”

That July 2024 statement indicates that the Memphis FedEx workers were given extended notice of the pending layoffs.