Filter
Top Products
en
•
gauge 25
24 en
•
gauge
departments
parts
ully operational as of
September 2001,the mam-
moth $65 million parts facil-
ity offers some impressive statis-
tics:The 843,000-square-foot cen-
ter is Toyota’s largest parts pro-
curement and distribution facility
under one roof.It houses 25,000
part numbers and has three mil-
lion pieces in stock worth $45 mil-
lion.The warehouse is capable of
receiving or shipping one pallet
load of parts every 30 seconds,
which translates into 30 truck-
loads of parts per day.
But the real promise of
NAPCK extends well beyond the
numbers.The location was cre-
ated to better serve the nation-
al network of Toyota and Lexus
dealerships and, ultimately, to
improve customer satisfaction.
The parts center breaks down
huge orders before shipping
pieces to 20 regional centers
that directly serve dealerships,
improving both the efficiency
and speed of parts movements.
Already,the center is achiev-
ing its desired effect as the fill
rate for North American-sourced
parts has jumped. Before the
site’s opening, 15 percent of
line items needed to be back-
ordered.Today,that proportion
has been sliced to five percent.
At the dealership level, that
means repairs happen quicker,
cars return to service sooner and
customers feel more satisfied
with the service experience.
The site was built to accom-
modate Toyota’s growing com-
mitment and presence in the
North American market. As
Toyota’s North American manu-
facturing capacity grows, the
amount of parts purchased
from U.S. suppliers also increas-
es.The new facility receives,
inspects and stocks parts from
375 North American suppliers as
well as from Toyota’s
Georgetown,Kentucky plant
which produces Avalons,
Siennas and Camrys.The parts
range from small nuts and
bolts to fenders, bumpers and
engines. Most suppliers feeding
parts to the Hebron,Kentucky
location are located in the
Midwest or on the East Coast.
NAPCK’s sister facility,the
North American Parts Center,
California (NAPCC) will continue
to be the primary distribution
center for parts produced on the
West Coast and imported from
Japan.Together, the two plants
represent one third of a three-
pole international distribution
center system.Similar locations
in Nagoya,Japan and Brussels,
Belgium comprise the remainder
of Toyota’s worldwide parts dis-
tribution framework.The North
American Parts Operations
(NAPO) group,which was created
in 1993 to improve parts-sourc-
ing capabilities and to establish
efficient parts distribution on
this continent,oversees the two
American centers.
The new Kentucky site
replaces a much smaller cross-
docking facility in Perrysburg,
Ohio.While most of the new
center’s parts are sent to 13 dis-
tribution centers located in the
continental United States and
Canada,many parts also are
shipped overseas.Material is
routed to parts distribution cen-
ters in Hawaii,Puerto Rico,
Guam, Saipan and American
Samoa.The facility also ships
parts to facilities in Japan and
Europe,underscoring the global
nature of Toyota’s production
capabilities.
While NAPCK uses custom-
Center of Success
Giant new parts facility keys distribution improvements
Some facts and figures about Toyota’s
newest parts center:
• The 86-acre Hebron, Kentucky site
was selected in December 1998. It
was chosen for several reasons,
including its proximity to Toyota
manufacturing facilities, suppliers
and its access to Cincinnati/Northern
Kentucky International Airport.
• Groundbreaking took place in
spring 1999.
• Construction was substantially com-
plete in June 2000 allowing it to
start receiving parts.
• The site was dedicated in
September 2001 after becoming
fully operational.
• The facility cost $65 million to build.
• At 843,000 square feet,it is Toyota’s
largest parts distribution facility
under a single roof.
• The floor space is equivalent to
about 28 large supermarkets,pro-
viding enough room to park 22
Boeing 747s or 8,700 Camrys.
• The site stores 25,000 part
numbers.
• More than three million pieces are
in stock at the site—an inventory
worth $45 million.
• 4,000 line items are received daily.
• The site employs 340.
designed racks, workstations,
carts and platforms, it does not
rely on extensive high-tech
equipment or robots to move
parts. Instead, the main
resource to ensure the site’s
accuracy and efficiency is a
workforce of 340.Associates at
the plant were selected from
more than 13,000 applicants.
In addition to being a key
supply point for the national
network of Toyota and Lexus
dealerships, the new parts cen-
ter underscores Toyota’s com-
mitment to the U.S. market.
Domestically built vehicles
account for 63 percent of Toyota
sales in North America and
North American-built parts
generate about $1.2 billion in
annual sales.
The next time your dealership
receives a shipment of parts,
there is an excellent chance
that they passed through
Hebron,Kentucky on their way
to you.
IT’S AS BIG AS 18 FOOTBALL FIELDS AND COULD PROVIDE PARKING FOR 8,700
CAMRYS. BUT THIS IS NO PARKING LOT. INSTEAD, IT’S THE NORTH AMERICAN
PARTS CENTER, KENTUCKY (NAPCK), WHICH WAS CREATED TO SPEED DELIVER-
IES OF NORTH AMERICAN-PRODUCED PARTS TO DEALERSHIPS WHILE BECOM-
ING A CRUCIAL DISTRIBUTION POINT FOR TOYOTA’S WORLDWIDE EFFORTS.
e
>Plenty of Room
>Main Entrance
F