02.12.2016

JLG confirms Euro parts outsourcing

JLG has confirmed details of its plan to outsource its European replacement parts warehousing and distribution operations.

The company has signed a strategic agreement with Dutch third-party logistics company Broekman Logistics, to manage its regional parts operations for Europe, Africa and the Middle East, from the start of 2017.

Broekman Logistics will run the JLG parts operation from its distribution centre in Born (Limburg) to the north of Maastricht and relatively close to the JLG plant in Maasmechelen, Belgium.

JLG’s current in house Parts Distribution Centre in Maasmechelen, will close at the end of the year. As part of this move European parts distribution will be interrupted between December 22nd and January 5th, 2017.

JLG 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 parts 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.”

The move follows the announcement in September of the appointment of XPO Logistics for North America, it will operate two distribution centres for JLG, one in Las Vegas and another in Atlanta. The company booked a charge of $26.9 million in its fourth quarter accounts to cover the costs of shutting its Orville, Ohio and Belgian parts facilities and making the move.
See JLG to outsource parts distribution