Prairie farmers using Agco equipment brands such as Massey Ferguson and Challenger can expect more types of parts to be in stock more often at the company’s Regina warehouse.
The U.S. farm equipment firm’s Agco Parts arm on Friday announced a major expansion of its parts distribution centre in Regina, to be completed by early next year, adding 25,000 square feet to its current footprint of 51,000.
A dollar value on the expansion wasn’t given, but the company, which held a groundbreaking at the site Thursday, said it will be “the largest Agco Parts investment in North America.”
The Regina centre’s addition is expected to provide 50 per cent more storage, 30 per cent more inventory and an increase in “facing fill,” to over 90 per cent, Agco said.
In supply chain management, “facing fill” is the term for the percentage of orders filled directly from the on-site inventory at a warehouse or distribution centre to which a dealer or customer is assigned.
A 90-plus-per cent facing fill would be the highest of any regional Agco Parts distribution center in North America, the company said Friday.
“With more parts housed in Regina, we are able to get the right parts in the hands of the customer faster than ever before,” Joe DiPietro, vice-president for Agco Parts’ Americas division, said in Friday’s release.
“We understand that uptime is critical and that customers need to get parts as soon as possible.”
Through this expansion, Agco said, it “improves its service level to Western Canada and reduces transit times on large and heavy parts.”
Agco’s Regina facility was upgraded and expanded to a full-stocking, full-service parts distribution centre (PDC) for the region in 2010, supplying the four western provinces and supporting emergency orders from the U.S. with daily shipments into Minot, N.D. The company also operates a PDC for Eastern Canada at Woodstock, Ont.
Regina is also home to a regional parts distribution centre for Deere and Co., which upgraded its facility there in 2009. — AGCanada.com Network