October 6, 2009 – After a thorough review of its North American supply chain, Timken has decided to consolidate its distribution centers in Bucyrus, Ohio and Spartanburg, South Carolina into a larger, leased facility in the greater region surrounding the existing Spartanburg location.
This will displace as many as 290 associates employed at the Bucyrus Distribution Center. All of those affected will receive transition benefits to assist them. Approximately 10 percent of the distribution center associates will be retirement-eligible through 2010.
This action is related to the distribution centers in Bucyrus and Spartanburg only. Operations continue at the company’s adjacent manufacturing facility in Bucyrus, Ohio.
The company expects site selection for the new distribution center to be finalized in a few weeks, and the transition of products and activities to that location will be phased gradually, through 2010.
The rationale for the decision reflects a shift in the company’s manufacturing and customer-service logistics requirements over the past decade:
· 89% of all manufactured products inbound to the company’s distribution centers now originate from the southeastern United States.
· Current distribution locations create inefficient logistics, increasing shipping miles by 30 percent on average, which leads to longer lead-times for customers, additional inventory, and higher transportation costs.
“This wasn’t an easy decision, and it’s not one we take lightly,” said Chris Coughlin, president of Timken’s process industries division. “We relied on the facts to determine the best distribution point for us to provide our customers with the timely service they require, and to ensure we can serve them competitively.”
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