Dedicated parts facility gives Terex Brands a competitive edge

One of the first visits to Northern Ireland the HUB-4 team made was to the Terex Materials Processing (MP) Parts Facility, located in Dungannon Business Par

Opened in July 2015, the facility represents an investment of $7.2 million by Terex Corporation, an impressive 5-acre footprint with the warehouse occupying 60,000 sq. ft and the main office block 10,300 sq. ft.

The relatively new facility—complete with a sophisticated parts operation—plays a key role in driving the reliable, efficient supply of parts to Terex MP customers, maximising their machine uptimes and return on investment.

Our host and tour guide, Kevin McCaffrey - Parts Operations Director, explains, “We know that having the right part available and delivered at the right time is essential for our customers. As well as this purpose-built facility, we have a full team in place, dedicated to the effective management and supply of parts globally for 227 machine models across six brands—Powerscreen, Finlay, EvoQuip, Terex Washing Systems, Terex MPS and Ecotec.”

The vast parts operation employs over 70 dedicated staff, with five line managers to oversee Parts Technical Support, Warehouse and Logistics, Parts Customer Service, Supply Chain and Inventory and Parts Process and Projects.

Kevin continues, “At any one time there are approximately 14,000 individual parts in stock, with a value of $19 million. As well as our current range of machines, we support machines 10-15 years in the field and in some cases even longer—which is a testament to our machines’ durability. We also have a Unit Down team who are committed to getting critical parts out within 24 hours to ensure our customers can get their machines back up and running as quickly as possible. ”

Global Parts Backup
Supporting six brands through a network of worldwide dealers, the dispatch operation completes approximately 21,000 orders per annum and also acts as a replenishment hub for the Terex Louisville, Kentucky facility that supports the whole of the USA.

The warehouse operates three shift patterns between 6am and 6pm, Monday to Friday serving two order type categories:

  • Standard – (stock replenishment)
  • Unit down – 24 hours (machine down in the field)

Seamless Material Flow
Oracle Warehouse Management System is utilised throughout the operation, with barcode scanning at point of entry, pick and dispatch, and integrated automated storage and retrieval systems in place to source the parts with consummate ease.

We entered the vast warehouse and were greeted by Connor Stringer - Warehouse and Logistics Manager, who told us in detail what makes this operation almost seamless.

“Goods-in is a two-stage receipted process where we manually count every single item we receive and check them against the Purchase Order. The parts are then labelled with the part number, bar code, weight, and country of origin before being put away in either fixed storage locators or dynamic locations. We have 14,000 Stock Keeping Units on site and around 80 percent have fixed default receiving locations, most of which are hard wired in the system, so it knows exactly where they should go. The remaining locations are used as dynamic storage, so the system will look at whether it has a default location, or shows a suitable field location.”

“The stockholding is split into eight different areas based on size of the part, the velocity of the part and value of the part. The small parts system is automated into three Hanel Lean Lifts, each with 60 shelves and with each shelf capable of holding 48 different components.”

Online Parts Ordering System and Helpdesk
Orders are received via an e-Commerce online ordering system, with the customer service team managing the open order book, communicating status with dealers and planning despatches. An online helpdesk is used to track and communicate with dealers.

Connor continued, “Our dealers place orders automatically through our online ordering system. The pick release operates automatically on the half hour every hour with a guarantee that if picked before 3pm, it is shipped the same day. We ship on average 5-600 lines per day, with approximately 50% same day shipment.”

A dedicated facility and team, seamless online ordering system and helpdesk, meticulous management of stock, picking, delivery and processes, the Terex Materials Processing Parts Facility and Operation is as close to perfection as you can achieve—very impressive.