JLG Industries Inc., an Oshkosh Corporation company and a leading global manufacturer of aerial work platforms and telescopic material handlers has entered a partnership in which XPO Logistics will store, package, and ship JLG’s aftermarket parts in North America, beginning in August 2017.
XPO Logistics, a top-ten global provider of logistics services, will operate two distribution centers for JLG: one in Las Vegas, supporting the western United States and western Canada, and another in Atlanta, supporting the eastern United States and eastern Canada.
As a result of the XPO partnership, JLG will close its parts-distribution center in Orrville, Ohio, by August 1, 2017.
This decision affects about 160 team members at the Orville distribution facility. The company expects the Orrville parts-distribution center to operate at full staff through the final transition date of August 1, 2017.
JLG is providing more than 10 months’ notice to affected team members to allow an extended transition period and provide support and services needed as part of the transition.
JLG’s factory and its engineering staff in Orrville will not be affected by the change in aftermarket parts distribution.
“As part of our efforts to ensure long-term growth and sustainability within our aftermarket business, JLG has conducted an overall assessment of its aftermarket distribution strategy and network over the past six months,” said Frank Nerenhausen, executive vice president of Oshkosh Corporation and president of JLG Industries. “We have determined that changes to our existing parts-distribution model are necessary to enable future growth. We did not reach this decision lightly, and we are committed to helping our parts distribution employees in Orrville during this transition,” Nerenhausen said.
Having distribution centers in Atlanta and Las Vegas will shorten delivery times to most customers.
According to Alan Loux, JLG vice president of marketing, access segment, JLG elected to go with XPO Logistics because the logistics expert has established warehousing and distribution facilities in strategic locations, has the needed logistical and information-technology infrastructure in place, and has a proven record of excellence. "They perform this kind of service every day for a variety of companies in at least 30 countries," Loux said.
In a phone interview, Loux noted that JLG presently has about 200,000 sq. ft. of warehousing for aftermarket parts in Orrville, and that the Atlanta facility alone will have up to 400,000 sq. ft. available if needed.
In addition, Loux said that although actual results remain to be proven when the new arrangement starts next August, JLG expects that moving aftermarket parts distribution closer to customers will make deliveries faster and more economical.
“We expect that the new arrangement will deliver parts to many West Coast customers using standard shipping in one to two days instead of five to six, and that many East Coast customers will receive parts the next day, instead of in one to two days,” he said.
Loux also noted that JLG expects that the shorter shipping distances from the Atlanta and Las Vegas distribution centers will also reduce many customers’ transportation costs.
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