MOUNTAIN VIEW, Calif. (News release) -- Gatik, the market leader in middle mile logistics, today announced a multi-year commercial partnership with Georgia-Pacific, one of the world's largest manufacturers and distributors of tissue, pulp and paper-based packaging, and KBX, the transportation arm for Koch Industries and an independent Koch company. Under the partnership, Gatik will automate part of the Georgia-Pacific-KBX on-road transportation network in the Dallas-Fort Worth metroplex, delivering goods round the clock, 7 days a week across a network of 34 Sam's Club locations.
The operations involve moving Georgia-Pacific shipments from point to point on predefined short-haul routes using a dedicated autonomous vehicle fleet with 26-foot boxes, representing the first time that class 6 autonomous box trucks have been deployed to disrupt short-haul logistics networks traditionally involving class 8 trucks. By replacing traditional tractor trailers with autonomous box trucks, Gatik's operations will establish a more responsive and flexible logistics network, increasing the cadence of delivery runs and the flow of goods, while reducing logistics costs and enabling near real-time inventory fulfillment. The operations will commence in July 2022.
"Our partnership with Georgia-Pacific and KBX is poised to transform regional distribution architecture that has traditionally relied on class 8 platforms," said Gautam Narang, CEO and co-founder, Gatik. "By integrating our class 6 autonomous solution into KBX's sophisticated infrastructure across Dallas-Fort Worth, Gatik will be able to deliver Georgia-Pacific products to a vast network of Sam's Club locations with unparalleled reliability, speed and consistency."
"We are looking forward to testing this transformational technology to deliver Georgia-Pacific brands like Quilted Northern® bath tissue and Dixie® products to Sam's Clubs," said Hayes Shimp, vice president of sales for Georgia-Pacific. "Once proven, we believe autonomous deliveries will enable us to remove cost and complexity from the supply chain so that we can better serve Sam's Club, and their members."
"KBX is focused on providing services that increase capacity and reduce costs in a safe, efficient way for the customers we serve," said Paul Snider, President of KBX. "Our partnership with Gatik will enable us to redefine the traditional class 8 short-haul market and deliver Georgia-Pacific goods with even greater speed and efficiency. We're excited to see these operations form the foundation of KBX's Autonomous Vehicle Program, as we prepare for wider-scale adoption of autonomous trucks to meet customer demand."
Gatik opened the doors to its autonomous trucking facility in Texas in 2021, and has established a long-term presence in the state. The company's operations there are anticipated to create over 500 new jobs by 2025, including operational, technical and business roles. Gatik's operations with Georgia-Pacific and KBX in the Dallas Fort-Worth area represent a hyper-efficient and customer-centric model designed to address shifting consumer behavior through higher asset utilization on the supply chain's middle mile.
About Gatik
Gatik, the leader in autonomous middle mile logistics, delivers goods safely and efficiently using its fleet of light and medium duty trucks. The company focuses on short-haul, B2B logistics for Fortune 500 retailers and in 2021 launched the world's first fully driverless commercial delivery service. Gatik's class 3-6 autonomous box trucks are commercially deployed in multiple markets including Texas, Arkansas, Louisiana and Ontario. Gatik is backed by Koch Disruptive Technologies, Innovation Endeavors, Wittington Ventures and others, and partners with industry leaders including Ryder, Goodyear and Isuzu. Founded in 2017 by veterans of the autonomous technology industry, the company has offices in Mountain View and Toronto. For more information on Gatik, visit www.gatik.ai and follow the company on Twitter, LinkedIn and Medium.
About KBX
KBX provides advantaged global transportation and logistics solutions to help customers win in the markets they choose to compete in. As the transportation arm of Koch Industries, KBX serves the growing demand for supply chain efficiency across broad logistics markets and offers subject matter expertise in North American rail and trucking, international ocean and air, and modern technical solutions that drive efficient execution and data management to meet customer demands specific to their supply chain. Based in Green Bay Wisconsin, KBX Logistics is the KBX business that specializes in trucking transportation solutions. Based in Wichita, Kansas, Koch Industries, Inc. is one of the largest private companies in America, with estimated annual revenues as high as $115 billion, according to Forbes. For more information on KBX, visit www.kbx.com.
About Georgia-Pacific
Based in Atlanta, Georgia-Pacific and its subsidiaries are among the world's leading manufacturers and marketers of bath tissue, paper towels and napkins, tableware, paper-based packaging, cellulose, specialty fibers and building products. Our familiar consumer brands include Quilted Northern®, Angel Soft®, Brawny®, Dixie®, enMotion®, Sparkle® and Vanity Fair®. Georgia-Pacific has long been a leading supplier of building products to lumber and building materials dealers and large do-it-yourself warehouse retailers. Its Georgia-Pacific Recycling subsidiary is among the world's largest traders of paper, metal and plastics. The company operates more than 150 facilities and employs approximately 30,000 people directly and creates more than 89,000 jobs indirectly. For more information, visit: gp.com/about-us. For news, visit: gp.com/news.
