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AGCO OPENS PARTS DISTRIBUTION CENTER IN ONTARIO
Source: AGCO news release

AGCO, Your Agriculture Company (NYSE:AGCO), a worldwide manufacturer and distributor of agricultural equipment, has opened a full-stocking parts distribution center (PDC) in Woodstock, Ontario, to ensure customers in Eastern Canada have the right parts when they need them most.

Previously, agricultural equipment parts for the eastern provinces were supplied through a facility in Kitchener or were shipped in from AGCO Parts' Batavia, Illinois, location. By moving to Woodstock, AGCO Parts new full-stocking distribution center is located in a more centralized, industrial area, so parts transit time will be reduced by one day to 85 percent of Eastern Canada. In most cases, AGCO Parts dealers will have next day delivery of in-stock parts.

In addition, the much larger, 67,000-square-foot building will allow inventory of about 45 percent more stock keeping units/SKUs than in Kitchener, increasing inventory to an estimated 50,000 SKUs.

"As growers continue to increase the size of their operations, the need to minimize downtime becomes increasingly important," says Joe DiPietro, director, Supply Chain, AGCO Parts.

"Relocating our parts distribution center serving Eastern Canada and upgrading it to a full-stocking location is another important way AGCO is improving the ways we support our dealers and their customers. This will provide faster service to our dealers so they are better able to keep customers' equipment in the field and performing at optimum levels."

Technology improves productivity, accuracy

A significant innovation made possible with the AGCO Parts' relocation is the adoption of a Warehouse Management System (WMS) which will improve productivity and accuracy.

"The WMS is a wireless warehouse system that enables parts to be tracked through the building from initial pick assignments right down to packing them in the carton," says DiPietro.

"Electronic monitoring of the parts that fill orders will decrease errors at the packing stations and save dealers time and the inconvenience of receiving wrong parts. It will help us respond more quickly and efficiently once an order is received from a dealer."

AGCO's relocation of this center and the increased inventory will improve order responsiveness and lower parts delivery times by two to three days, compared to previous efforts. Changes implemented will result in next-day delivery of in-stock parts and earlier delivery of emergency and priority shipments for nearly 85 percent of the dealers in Eastern Canada. Customers and dealers also may pick up parts at the Woodstock location.

This is the fourth AGCO Parts facility to be upgraded to a full-service PDC since 2010. Collectively, the upgrades offer significant benefits for customers to reduce shipping times, since now more than one-half (five of eight) of AGCO Parts' North American PDC locations are full-stocking. These are just a few examples of intensive efforts by the company to improve parts availability.

Parts for all product lines from tractors and combines to tillage and application equipment are stocked there, with shipments to dealers made daily.

Additional changes implemented by AGCO Parts across North America during the past four years that also are designed to improve customer experience include:

an updated and reorganized inventory management system;

increased dealers' parts inventories;

revisions to online parts books, making it easier and faster to order the correct parts;

PM360, a pro-active preventative maintenance program, designed to enhance machine uptime, resale value and operating efficiencies, as well as provide peace of mind and optimum machine productivity;

extended customer service hours during planting, spraying and harvest seasons.

For more information about AGCO Parts, its products, services and in-season promotions visit www.AGCOParts.com.


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