olvo Group South Africa (SA) has officially opened its new regional parts distribution centre (RDC) in Ekurhuleni.
The R60-million facility houses parts for all members of the local Volvo Group, namely Volvo Bus, Volvo Construction Equipment, Volvo Trucks, Volvo Penta, Renault Trucks and UD Trucks, previously spread across three warehouses. (The Volvo car brand is not included and does not belong to Volvo Group SA.)
The project transformed one of these warehouses into the RDC, growing it from 4 500 m2 in size to 13 000 m2, says Volvo Group SA logistics GM Collin Govender.
Construction on the facility started in the last quarter of 2013, with work completed earlier this year.
The centre houses 52 000 parts, valued at roughly R280-million.
Parts are supplied to the Johannesburg RDC from the central parts distribution centres of all the group’s members, located across the globe, including Renault Trucks, in France, UD Trucks, in Japan and Singapore, and Volvo Construction Equipment, Volvo Bus, Volvo Penta and Volvo Trucks, in Sweden and Belgium.
“As Volvo Group SA, we believe that the merger of our warehouse facilities under one roof will enable us to better support the company’s future growth within Southern and East Africa,” says Volvo Group SA president Torbjörn Christensson.
“It is, therefore, a strategic investment in our future, and will enable us to support our customers more efficiently and timeously, especially in light of the significant volume growth our brands have experienced over the last number of years.”
The new consolidated Volvo Group RDC should lead to speedier parts deliveries, more streamlined and efficient operations, as well as increased warehousing capacity for all of the group’s brands.
The RDC has a same-day delivery policy to dealers within 50 km of the facility, with a 24/7 process in place for emergency parts.
Overnight and next-day deliveries are available to the remainder of dealers across South Africa, as well as up to twice-weekly dedicated deliveries to export dealers outside the country.
The RDC supports all countries up to the equator, except Angola, says Govender.
Capacity within the warehouse should be sufficient up to 2018 to 2020, should vehicle sales continue at the current tempo, he adds.
The facility employs 16 office workers and 52 industrial workers.
Of the 25 staff members at the UD Group’s warehouse in Rosslyn, Pretoria, six chose to relocate, while 19 negotiated exit packages.