Lake Forest, Ill.-based CNH Global N.V. last week announced it will move forward with plans to consolidate three of its parts depots into one newer and more strategically located facility.
CNH-operated parts distribution operations in St. Paul, Minn. and Kansas City, Kan., will close, and use of a third-party-operated facility in Omaha, Neb., will be discontinued. Parts distribution operations will be handled through a new, larger and more modern facility in Cameron, Mo. Details that still need to be worked out include approval of a community development block grant and other funding incentives. The company is also engaged in discussions with unions representing employees at the affected facilities.
According to Jim Sharp, president CNH Parts & Service, this action represents continuation of the second phase of a previously announced global plan to improve dealer and customer service, improve efficiency and reduce overall logistics costs of the company’s parts distribution network.
“The site being considered is strategically located near the convergence of several interstates, which makes it a logistics and transportation hub,” Sharp said. “Equally important is that the facility is large and expandable, which is key to our ability to meet the needs of our customers and dealers moving forward.”
The two CNH-operated parts distribution centers each currently employ approximately 40 people. The new facility is expected to employ between 120 and 150 employees, depending on seasonal fluctuations. It provides parts and service to support the company’s Case IH and New Holland agricultural equipment and Case and New Holland construction equipment brands.
The tentative transition plan is expected to take 12 to 15 months to execute.
In other company news, CNH signed a three-year agreement with Wallenius Wilhelmsen Logistics for global roll-on/roll-off shipments. This agreement extends long historical ties between the two global companies. Services provided to CNH will link Europe-North America and South America-Japan-Oceania, including nearly 100 port connections.
The agreement is expected to improve lead times, result in better process controls and guaranteed vessel space, the company said.
The CNH and Wallenius Wilhelmsen Logistics relationship began in the 1970s with ocean shipments. It was later expanded to port operations and distribution management in North America and Australia.
CNH is a manufacturer of agricultural and construction equipment supported by 11,800 dealers in 160 countries.
