Through this new center, customers will experience increased efficiencies on spare parts orders, with an even greater same-day order fulfilment rate. The new center will allow Multivac to improve efficiencies in terms of space utilization and human resources.
“The new Logistics Center will allow Multivac to consolidate an external warehouse and our current on-site spare parts storage into one location,” explains Markus Walderich, Chief Technical Officer with Multivac, Inc. “This new hall will include an automated storage and retrieval system for spare parts, which will benefit the entire supply chain system, creating the most efficient use of our physical assets and human resources.”
Multivac, Inc. carries nearly 6,400 individual spare part SKUs. This volume allows Multivac to ship 85% of customer spare part order requirements from local stock inventory. These parts are currently housed in the Kansas City headquarters location, valued at $13.8MM. In 2019, more than 68,000 parts orders were fulfilled. Rapid business expansion had placed Multivac in a position to outgrow the existing spare parts operation in as little as three years.
“This is an exciting time for Multivac. Our owners see the importance to invest in a new Logistics Center in Kansas City, both for our customers and for Multivac as a global organization’” explained Matt Malott, Chief Executive Officer with Multivac, Inc. “With this addition, Multivac is positioned to better serve our customers and build upon our already exceptional customers support.”
With the addition of the Logistics Center, Multivac is expecting to re-purpose current space into offices by moving the existing spare parts operations into the new hall. This addition will also create new jobs at its headquarters. “Multivac is looking forward to the evolution of our business as we bring on the new Logistics Center. Our customers will benefit from increased efficiency in our inventory operations and the expansion of our facility will allow us the much needed space to continue growing our Kansas City based workforce,” stated Christine Rawlins, Senior Director of Human Resources.