Hitachi Construction Machinery has begun operation of the Salt Lake City Parts Warehouse, in Utah, USA, to strengthen its supply system for service parts in western North America.
This new 173,000 sq.ft (16,072 sq.m) warehouse will enable the company to supply service parts, which were previously shipped from parts warehouses outside of Atlanta, more rapidly to dealers and customers in western North America.
Service parts for construction and mining machinery must be supplied to customers in a rapid and reliable manner to maintain stable machinery operation, the company states. The Hitachi Construction Machinery Group began operation of the Jackson Parts Warehouse (Jackson, Georgia) and McDonough Parts Warehouse (McDonough, Georgia) outside of Atlanta in 2022 to strengthen its parts supply system in the Americas. Previously, these warehouses supplied parts to regions all over the Americas including Canada, Central and South America.
The operation of the Salt Lake City Parts Warehouse is expected to shorten the delivery lead time by approximately one to three days for service parts shipped to dealers in the US states of Utah and Alaska, the Canadian province of Alberta, and other regions within western North America. The new warehouse is scheduled to store 30,000 different parts upon opening and ship around 500 orders per day.
Jeremy Dieterle, Vice President, Parts Hitachi Construction Machinery Americas, said: “When we were deciding upon the location for this warehouse it was important for us to be close to our customers. While this requires additional investment and complexity for us, our goal is to improve the speed of delivery to our customers, maintain world class fill rates and be a highly reliable partner.”
Hitachi Construction Machinery Americas says it is committed to its customers and dealer network with $140 million in parts inventory spread across its warehouses in the Americas to ensure high parts availability.
Going forward, the company plans to expand warehouse operations through further enhancement of equipment and systems. Furthermore, operation of the warehouse will be entrusted to LOGISTEED America, Inc under a third-party logistics arrangement similar to the parts warehouses outside of Atlanta.
