Volvo Construction Equipment (Volvo CE) has opened a new parts distribution center in Toronto, Canada, to better serve its customers in the country. The new facility is part of the company’s strategy to ensure the highest uptime in the industry, as it cuts delivery time and enables dealers to restock both common and business-critical components much faster.
The Canadian distribution center increases Volvo CE’s distribution footprint and reinforces the company’s best-in-class customer experience initiative. With the new center, Volvo CE will be able to deliver critical parts the next day after an order is placed to dealers in most major markets across Canada.
“We’re very excited with the opening of this modern, efficient parts distribution center, which is part of our strategy to improve uptime not only in Canada, but across North America,” said Stephen Roy, president of Volvo CE Americas. “It shows Volvo CE’s commitment to provide our customers with premium machines and premium aftersales services.”
Volvo CE dealers in Canada forsee huge benefits to having a distribution center based in the country. Prior to the opening of the center, the company shipped all parts to its Canadian dealers from the United States. This entailed processing through customs, which could cause delays in delivery and increase machine idle time.
“This Canadian parts distribution facility gives our Strongco customers improved access to critical Volvo OEM parts inventory on this side of the border,” said Oliver Nachevski, vice president and COO for Strongco, a Volvo CE Canadian dealer. “This is a very exciting initiative, as both Strongco and our customers will benefit from enhanced parts availability, which enables us to offer next day express delivery capabilities.”
Volvo CE is making impactful strides to help deliver industry-best parts service to its customers. In 2015, the company opened a 92,903 m2 (1 million ft2) distribution center in Byhalia, Mississippi, in addition to other parts distribution centers in Columbus, Ohio, and in Reno, Nevada. The new distribution center, which is 16,815 m2 (181,000 ft2), replaced a regional parts depot in Toronto.
Volvo Group Service Market Logistics operates the new parts distribution center, which will not only provide parts for Volvo CE dealers, but also for Volvo’s other business areas, such as Volvo Trucks.