Volvo Construction Equipment is planning to open a new parts distribution centre in the Greater Toronto Area.
Scheduled to open in early 2018 near Pearson International Airport, the centre aims to allow Volvo dealers to restock both common and business-critical parts faster.
“This new facility is a key step in our journey to be number one in machine uptime in the industry,” said Ken Silverman, vice president of Aftermarket and Customer Solutions for Volvo CE Region Americas. “Today’s customers have an expectation of next-day delivery, and the new distribution center, located near Toronto’s main international airport hub, will improve our lead times and give us the ability to deliver parts anywhere in Canada by early AM the next day.”
The new 16,815 square metre parts hub will serve as an advantage for Volvo’s more than 40 dealer locations across Canada. Currently, the company ships parts to Canadian dealers from the United States.
“For us, the new distribution center is significant because it will help avoid customs delays,” said Jack Bradley, Strongco’s vice president of Supply Chain. “Now we will have much faster lead times and easier access to fast-moving parts.”
For Strongco, the new distribution centre will allow the company to offer next day express delivery capabilities.
“This Canadian parts distribution facility will give our Strongco customers improved access to critical Volvo OEM parts inventory on this side of the border,” said Oliver Nachevski, vice president of the Construction Equipment Division for Strongco.
The Canadian facility follows several other new locations to advance pats delivery. In 2015, Volvo opened a 92,903 distribution centre in Byhalia, Mississippi, in addition to secondary parts distribution centers in Columbus, Ohio and Reno, Nevada.
The Canadian centre replaces a regional parts depot there, and the company plans to deliver critical parts to any dealer across Canada in major markets by 8 a.m. the day after the order is placed.
The centre will be operated by Volvo Group Service Market Logistics. In addition to providing parts for Volvo Construction Equipment dealers, the distribution center will also provide parts for Volvo’s other business areas.
“Clearly this is a big step in Volvo’s commitment to be number one in uptime in the industry,” said Colin Matejka, COO, Great West Equipment in Vernon, British Columbia. “This is really big for us and our customers since we can now ensure quicker delivery. For our staff, this is a huge morale boost — now we can confidently look a customer in the eye and commit to 24-hour delivery without hesitation.”