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The Midwest Makes a Move: How Cabi Clothing's DC Shift Signals a Broader Trend

Feb. 3, 2026 at 7:07pm

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Cabi Clothing's recent relocation of its West Coast distribution center to Indianapolis, Indiana, isn't just a story of adapting to rising real estate costs. It's a bellwether for a significant shift in supply chain strategy – a move towards centralized distribution, automation, and a more resilient fulfillment network.

Why it matters

The fashion brand's experience highlights a growing trend among businesses seeking to optimize speed, efficiency, and cost-effectiveness in a volatile market. Escalating transportation costs, labor shortages, and increasing demand for faster delivery are forcing companies to re-evaluate their supply chain strategies.

The details

For decades, many companies favored a distributed network of distribution centers, positioning inventory closer to customers. However, the Midwest, with its central location, lower operating costs, and access to a robust transportation infrastructure, is rapidly becoming the preferred hub. The implementation of automation – specifically a put-to-light wall and a new warehouse execution system (WES) – was crucial to Cabi's success, mirroring a broader industry trend. Automation isn't just about robots replacing workers, but about streamlining processes, reducing errors, and improving throughput. Cabi's experience – a 50% increase in pick line productivity – demonstrates the tangible benefits.

  • Cabi Clothing recently relocated its West Coast distribution center to Indianapolis, Indiana.

The players

Cabi Clothing

A fashion brand that recently relocated its West Coast distribution center to Indianapolis, Indiana.

Sarah Miller

A supply chain analyst at Gartner.

David Anderson

The CEO of Systems in Motion, the integrator that worked with Cabi.

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What they’re saying

“The days of simply chasing proximity to population centers are fading. Companies are realizing that a well-optimized, centralized DC, coupled with strategic partnerships for last-mile delivery, can often outperform a sprawling network.”

— Sarah Miller, Supply Chain Analyst (Gartner)

“The line between B2B and B2C fulfillment is blurring. DCs need to be flexible enough to handle any order type, any time. That requires sophisticated WES and automation solutions.”

— David Anderson, CEO (Systems in Motion)

The takeaway

The story of Cabi Clothing is a compelling example of how companies can adapt to changing market conditions and build more resilient, efficient supply chains. By embracing centralization, automation, and data-driven decision-making, businesses can position themselves for success in the years to come.