Bobcat’s 110,000-square foot facility in North Valleys .
Compact construction equipment manufacturer Bobcat’s decision to construct a parts distribution center in south Reno stems from the company’s need to bring parts and equipment closer to its customer base to reduce shipping times, a company executive said.
Since 1998 Bobcat has served the entire U.S. from its flagship aftermarket parts distribution facility in Woodridge, Ill., said Scott Simnitch, aftermarket operations manager at Bobcat Company. However, as Bobcat has scaled over the years, company executives realized that it will quickly max through-put and physical capacity at the 358,000-square-foot Chicagoland facility.
Bobcat began exploring its options, which included moving into a larger facility in the Chicagoland area.
“It is the center point for everything we do, and all the transportation hubs are there, but what that didn’t do if we moved into a bigger facility is get our products closer to our customers,” Simnitch told NNBW. “Today, that is key – how long does it take to get to me and how much does it cost?”
Bobcat decided its best move was to add a new aftermarket parts distribution center to its network, and early last year the company decided it would be best served by adding two facilities. It settled on Reno and Atlanta to provide more comprehensive coverage to its customer base.
“A lot went into deciding what made those (cities) work best, and looking long term, we think we will be adding even more distribution centers down the road – that’s going to be the model,” Simnitch said. “But for servicing the West Coast and Pacific Northwest, Reno is the right place to be.
“It’s a long way from Chicagoland to the West Coast,” he added. “By placing key items in that facility and bringing them closer to our dealer base, we are able to cut down on wait times for our customers and be competitive against other OEMs in the area since our customers don’t have to wait for parts to travel halfway across the country. We can get to the vast majority of our West Coast dealers within one to two days, and in today’s world, that is the expectation. People want it now, they don’t want to wait, and so we wanted to get closer so they don’t have to wait.”
Logistics, labor and location were primary factors in deciding where to build both facilities, Simnitch added. The 110,000-square-foot facility in North Valleys was the first to open, with the second facility slated to open later this year. The Reno building was constructed by Majestic Realty of Los Angeles.
Reno stood out above other potential western region locations due to its continued growth as a logistics hub, Simnitch added.
“It was the right place to be. We looked at locations in California, Portland and even Las Vegas. But looking at where we might go in the future, likely somewhere in the Southwest, Reno was better so we wouldn’t overlap territories versus Las Vegas,” he said.
Bobcat Company’s Northern Nevada facility will employ about 35 in traditional fulfillment roles such as pick-and-pack, inventory control, shipping and receiving, and a handful of management positions as well.
Bobcat will utilize Manhattan Associate’s Warehouse Management for IBM i (WMi) on-site warehouse management solution at the Reno aftermarket parts distribution center. As with its Chicagoland operations, the Reno facility will be run by APL Logistics, whose North American headquarters is in Scottdale, Ariz. APL Logistics has operated Bobcat’s flagship part distribution facility since 1998, Simnitch said.
“They are very familiar with our products and processes,” he said. “This is construction equipment – not everything comes in a pretty box. That’s what’s nice about using APL to operate that facility – their familiarity really helped get this facility off the ground.”
Parts and equipment at the facilities include just about anything found on a compact loader, excavator or skid-steer, including hardware, belts, hoses, tires, tracks and buckets. Migration of more than 6,000 SKUs from greater Chicago to Northern Nevada took more than a month, Simnitch said. Bobcat will continue to replenish stock for both its Atlanta and Reno sites from the mothership building in Woodridge, he added.
The company will explore adding increased automation for the Reno facility, Simnitch said.
“Automation has come back into favor, and the technology has gotten better,” he said. “It’s something we are certainly looking into.
“This is a huge commitment to our customers,” Simnitch added. “It is a very competitive market, and we have a great customer base that we want to keep happy and grow. Expanding to Reno and Atlanta and getting our products closer to them goes a long way to making that happen. It also makes our facility in Woodridge better by taking some of the burden off it.
“Overall, the No. 1 thing to come out of this is an improved customer experience,” Simnitch said.