Federal-Mogul Announces Changes in Aftermarket Distribution System
11 November 1997
Federal-Mogul Announces Changes in Aftermarket Distribution System
SOUTHFIELD, Mich., Nov. 11 -- Additional actions were
announced today at Federal-Mogul Corporation towards the
completion of its restructuring plan.
Federal-Mogul will make a series of changes to its U.S. service center
network to gain greater value from its product distribution capabilities in
the aftermarket. These modifications complement the efficiencies of the new
hub-and-spoke service center network.
Changes to the distribution system include the closings, effective
December 5, 1997 of service center locations in Birmingham, Alabama; Hayward,
California; Omaha, Nebraska; Long Island, New York; Oklahoma City, Oklahoma;
Portland, Oregon; Philadelphia, Pennsylvania; and San Antonio, Texas.
Effective December 30, 1997, Federal-Mogul will close service centers in
Cleveland, Ohio; Indianapolis, Indiana; and Richmond, Virginia. The company's
LaGrange, Indiana facility will become a full-service hub operation in
addition to the existing hub locations in Los Angeles, California; Atlanta,
Georgia; Dallas, Texas; and Seattle, Washington. An additional hub will be
established in the northeast United States during 1998.
The new hub-and-spoke distribution network will comprise of six hubs and
29 spokes within North America. This system is designed to better address the
needs of Federal-Mogul customers. The company's research indicates, for
example, that higher order fill rates rank highest among the needs and
expectations of our customers. The hub-and-spoke system will enhance fill
rates while continuing to support next-day small-order product availability in
approximately 90 percent of the United States.
"These changes represent a refinement in our distribution capabilities as
we implement the hub-and-spoke concept," said Kevin Baird, vice president -
distribution and logistics. "Our greater efficiency and order fill
capabilities reflect both the strategic direction of our company and the needs
of our customers."
Creation of the hub-and-spoke concept is consistent with Federal-Mogul's
closer focus on the customer. The company recently finished an extensive
customer opinion survey to help determine future services.
"We're listening to our customers and have gained a greater appreciation
of our role in the market," said Michael Schultz, vice president and general
manager -- sales North America. "These changes will allow us to better fulfill
customer needs while realizing the benefits of a more efficient product
distribution system."
Additionally, as part of the restructuring plan announced in February, the
company has closed its distribution centers in Singapore and Malaysia.
Service to customers in this region will be provided by the sales office in
Singapore and product will be shipped directly from its distribution sites in
Ft. Lauderdale, Florida and Kontich, Belgium. Local distribution in
Singapore and Malaysia will be transferred to a number of strategic customers.
Headquartered in Southfield, Michigan, Federal-Mogul is a $2 billion
global manufacturer and distributor of a broad range of non-discretionary
parts primarily for automobiles, light trucks, heavy trucks, and farm and
construction vehicles. The company was founded in 1899. Visit the company's
web site at http://www.federal-mogul.com for more information on Federal-
Mogul.
SOURCE Federal-Mogul