Armlogi Scales Middle-Mile Network Alongside AI Fulfillment System
Expansion strengthens connectivity between warehouses and delivery hubs while improving cost control across fulfillment operations.
Armlogi Holding Corp., a U.S.-based warehousing and logistics provider, expanded its internal middle-mile transportation network across its e-commerce fulfillment operations, weeks after launching an AI-enabled system to optimize order routing across its warehouse network.
The company reported that middle-mile transfer volume rose by approximately 50-60% compared to the prior six-month period, while transfer routes expanded by 40-50% across its California network.
Earlier in March, Armlogi announced its AI-enabled Smart Fulfillment Network, which uses artificial intelligence to analyze delivery locations, inventory availability, carrier zones, and facility capacity to determine the optimal fulfillment node for each order.
Armlogi’s network is structured around multiple warehouse locations across the U.S., allowing inventory to be positioned closer to end customers and connected to regional carrier networks, based on company disclosures.
Armlogi has begun internalizing transportation movements between its warehouses, major selling platform fulfillment centers, and regional delivery carriers that were previously handled by third-party providers, the company said. The shift is intended to reduce outsourced transportation costs and improve operating margins.
Armlogi operates a network of 10 warehouses totaling approximately 3.9 million sq ft across California, Texas, Illinois, New Jersey, and Georgia, serving more than 600 active customers, most of whom are cross-border e-commerce merchants.
The expansion has focused on Southern California, where the company increased route density and transfer frequency between facilities and regional hubs. Armlogi said it plans to extend coverage into Northern California and nearby states including Nevada and Arizona.
“Building our own middle-mile transportation capability is a strategic step toward improving cost efficiency and reducing our dependence on third-party carriers,” CEO Aidy Chou said. “As our fulfillment volumes continue to grow, internalizing these critical logistics movements allows us to tighten the connection between our warehouse network and the delivery ecosystems that serve our merchants.”
Armlogi said it expects continued growth in fulfillment volumes to support further expansion of its transportation network into additional regions.