TROY, Mich.—Dayco Products L.L.C. has opened a new central U.S. distribution center in Memphis, Tenn.
The 400,000 sq.-ft. facility features state-of-the-art distribution and logistics technology, including a new Tier 1 warehouse management system, which the company said will improve shipping times while increasing Dayco's fill rates.
Dayco's center will allow the company to expand its customer service capabilities and implement new supply chain systems at the site.
“As a major transportation hub centrally located in the U.S., Memphis is the best location for our distribution center,” according to Dayco CEO John Bohenick. “The new location gives Dayco the ability to provide a seamless service experience for our North American customers, from manufacturing to delivery.”
Dayco's new center will employ nearly 200, the firm said, and will be used to distribute the company's products—including belts, tensioners, pulleys, harmonic balancers, hose, hydraulics components and equipment along with all related tools—in North America.
Initial product shipments from the center are expected in the third quarter. The Troy-based firm's goal is to ship all products from the facility by the end of the calendar year.
A leading engine products and drive systems producer for the automotive industrial markets along with the aftermarket, the company said it had outgrown its present distribution facilities located in Fayetteville, N.C.; Red Springs, N.C.; and Sparks, Nev. All are expected to be closed. The number of employees impacted when those sites are closed has not been released. Exiting employees will be offered outplacement services and severance wages, a spokesman said.