DENSO announced its affiliate DENSO Products and Services Americas is opening a new distribution center in Jeffersonville, Indiana.
The facility, which will be fully operational this summer, “is another milestone in DENSO’s North American distribution-optimization strategy to more efficiently serve its growing customer base throughout North America as well as leverage IoT technologies and improve safety,” the company said.
In addition to Jeffersonville, DENSO recently opened a distribution center in Rancho Cucamonga, California. The additional space near customers will reduce transit times and enhance operations, including management, control and execution. The two centers will help DENSO achieve higher fill rates, manage efficient inventory, control cost and meet growth targets, according to the company.
“With our distribution strategy, we are embracing innovation to build the future of mobility,” said Kazu Yanagawa, vice president of DENSO’s Supply Chain Management Group. “The center in Jeffersonville is strategically located to help meet the rising demand for DENSO’s top-quality replacement auto parts in the Northeast and Midwest. This new distribution center gives us next-day ground transportation access to the entire region.”
DENSO is investing more than $9.5 million to lease and equip the new DC in Jeffersonville. Of that, $3 million is dedicated to technology, such as warehouse-management software to control inventory, optimize supply chain management and enhance customer service, according to the company. Hiring is underway to add up to 50 new full-time jobs, including warehouse, management and administrative positions.
DENSO’s job creation plans position the company for state incentives of up to $325,000 in tax credits and up to $50,000 in training grants from the Indiana Economic Development Corp., as well as incentives from Jeffersonville. The center is in the River Ridge Commerce Center, a 6,000-acre business, industrial and technology hub along the Ohio River with multimodal connections to consumer markets nationwide.