22.09.2016

JLG to outsource parts distribution

JLG is outsourcing its parts distribution in both North America and Europe, today it announced its plans i the USA.

In North America it has agreed a strategic partnership with XPO Logistics, a third-party logistics company, to manage all of its parts distribution operations, from August next year. XPO will operate two distribution centres for JLG, one in Las Vegas, supporting its West Coast business, and another in Atlanta, supporting its East Coast business.

As a result of the agreement JLG will close its Parts Distribution Centre in Orrville, Ohio at around the same time. This decision affects about 160 employees at the Orville facility, but will remain at full capacity until the start of August. JLG manufacturing operations and engineering will continue to operate from the Orrville facility. The company will make a $27 million provision for the transfer of the two operations.

President Frank Nerenhausen said: “As part of our efforts to ensure long-term growth and sustainability within our aftermarket business, JLG has conducted an overall assessment of its distribution strategy and network over the past six months. 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.”