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Volvo Distribution Centre Opening

Volvo Celebrates Official Opening of Construction Equipment Distribution Centre in Milton, Ontario

By Marek Krasuski

In 2017 Volvo made the decision to enhance its services to the more than 40 Volvo Construction Equipment dealers across Canada. That decision recently culminated in the Grand Opening on March 26th of a new parts distribution centre in Milton, Ontario. The inauguration was attended by elected officials, including Milton Mayor Gordon Krantz, Distribution Centre employees, Volvo customers and dealers, management staff for Service Market Logistics North America and about 160 invited guests who toured the state of the art facility and were apprised of several employee-driven improvement projects. Bob Hochwarth, Volvo Group’s Vice President of Service Market Logistics for North America, and Stephen Roy, President of Volvo Construction Equipment of the Americas, also participated in the official opening.
“The new Distribution Centre (DC) aligns with Volvo’s tradition of providing excellence in client and customer satisfaction,” noted Martin Johnston. In his capacity as Volvo Project Manager Johnston played a pivotal role in facilitating the transition to the new location. The Milton facility, located at 8460 Escarpment Way, Building E, exceeds 181,000 square feet, fully three times larger than the older site in Mississauga, Ontario, Volvo’s first Canadian parts centre for trucks that opened in 2001.
As with the previous location the new Distribution Centre will continue to carry parts for Volvo and Mack trucks. Now, with its enhanced footprint the Milton site also holds the distinction as the first Canadian facility to stock parts for Volvo Construction Equipment (VCE). The more than 40 VCE Dealers across Canada will benefit from acquiring critical parts in a more timely fashion. Previously, Canadian VCE Dealers had parts shipped from Volvo headquarters in the United States. Awaiting customs clearance delayed shipments, sometimes by several days. Now with inventories shipped from the Milton location to sites across Canada dealers can expect shipments in as little as 24 hours.
To be sure, one customer in Whitehorse, Yukon, some 6,500 kilometres from Milton, received their parts the day after the order was processed, a testament to the Centre’s ability to live up to its promise of efficiency. It is a commitment underscored by Volvo’s President of Construction Equipment, Stephen Roy. “We understand, from a customer standpoint, that if we don’t have the part, we let you down and we impact your business. So this facility helps us get to that high uptime standard,” he explained to all in attendance.
In addition to an expanded footprint the new Distribution Centre is outfitted with storage racks measuring 28 ft. in height, 27.4 ft. high storage bins, and a full 32 ft. clearance from floor to ceiling. The building houses nearly 42,000 Stock Keeping Units (SKUs), an expansive inventory large enough to service Mack & Volvo trucks and Volvo Construction Equipment across the country.
Moving the Distribution Centre (DC) a half hour west to Milton from its former location in Mississauga was completed in just 10 days, an undertaking which Bob Hochwarth, Volvo’s Vice President of Market Logistics, fully credits to Volvo’s dedicated staff. “It took a lot of blood, sweat and tears from the employees that are here today to make that happen. I’m really proud of this facility and the work of the team here.”
The newly expanded warehouse in Milton affords Volvo the opportunity to build on an already stellar reputation. The Mississauga site had twice landed the number two spot in the Carlisle benchmark Top Performance of the Year, surpassing in productivity and quality all but one of 74 heavy equipment manufacturer warehouses across North America.
With a view on future development Volvo will continue to expand availability of construction parts in North America through ongoing investments in this sector.

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