Here's why Lexus is leaving Jacksonville

[mikeavelli]

http://www.bizjournals.com/jacksonville/news/2016/01/20/heres-why-lexus-is-leaving-jacksonville.html
Some news on the SE Parts distribution centers....

Southeast Toyota's Jacksonville distribution center is making room to grow, which means longtime partner Lexus is moving out.

Lexus will now be moving its Southeast parts distribution centers to two locations: Orlando and Atlanta, said Neil Swartz, vice president and general manager of Toyota North America's parts operations.
The decision to do so, which actually started about four years ago, stemmed from growth of Southeast Toyota Distribution, the largest independent vehicle distributor in the country, owned by JM Family Enterprises.

“Our business is booming,” said Wayne Crater, vice president of parts supply and distribution for Southeast Toyota. “We just finished a record year.”

Crater said that four years ago, they made the decision to have its Lexus distribution split off from the rest the operation, something that was mutually beneficial to both parties.

“We needed the space and Lexus wanted to move closer to its customers,” he said.

The result was that Lexus now will serve half of its 43 Southeast Lexus dealers out of Orlando and half of them out of Atlanta.

Swartz said that Lexus considered moving to a new space in Jacksonville but ultimately felt that splitting the service between the two cities would give better access.

“We wanted to try to provide the fastest service,” he said, “and be as close as possible. Orlando is a little closer to South Florida and to the western part of the state than Jacksonville was, so it was a little better location. Same with Atlanta: In that area, our distribution center services customers all the way up North Carolina, South Carolina, Alabama and Tennessee. So if we get a little closer, we can shorten drive time to the location.”

He added that no jobs would be affected in Jacksonville by the move, as all the employees handling Lexus had been Southeast Toyota employees. XPO Logistics will handle the distribution in Orlando and Atlanta.

With the newfound space, Crater said Southeast Toyota will “stretch out a little bit more” as it continues to expand and handle more vehicles. Last year, the distribution center handled $574 million in vehicles parts for dealers.

 

[Tragic Bronson]

“We needed the space and Lexus wanted to move closer to its customers,” he said.

Customers like Mickey, Minnie, Donald, Daisy, Goofy and Pluto?

 

[Bulldog 1]

I'll bet if you ran statistics, more Lexus are sold in South Florida than anyplace else in the state. The number one volume Lexus dealer in the country is here. But logistically, moving anything to do with distribution this far south would be silly.

 

[Ruksac]

more Lexus are sold in South Florida than anyplace else in the state. The number one volume Lexus dealer in the country is here.

The number one and number two volume dealers in the country are here. In fact, Lexus says that the 6 dealers in Miami-Dade, Broward, and Palm Beach counties sell 10% of the nation's Lexus annually. But I digress. Maybe the parts distribution in Orlando only makes sense because of the huge presence in the used car market due to the Manheim Auto Auction location? Geographically, Atlanta is more sensible. There are only 14 dealers from Orlando and points south but maybe because of the concentration of wealth it does make sense.

 

[Tragic Bronson]

http://pressroom.toyota.com/releases/tms-lexus-pdc-atlanta-opens.htm

Toyota Motor Sales Opens New Lexus Parts Distribution Center in Atlanta
Service for 27 Lexus Dealers Aims to Improve Speed and Service for Customers

Atlanta, August 26, 2016 – Toyota Motor Sales, U.S.A., Inc. (TMS) announced that it has officially opened a new parts distribution center (PDC) in Lithia Springs, Georgia. The new Atlanta PDC will employ up to 30 employees in 107,000 square feet of space. Stocking approximately 43,000 Lexus parts, the facility will serve 27 Lexus dealers in the Southeast, primarily in Atlanta, as well as a five state area that includes Georgia, North Carolina, South Carolina, Alabama, and Tennessee.

“The Atlanta PDC will improve service and support for Lexus dealers in the area, as it incorporates best practices learned at other PDCs,” said Jason Brown, operations manager for Toyota’s Service Parts and Accessories group. “With same-day service in select metro areas and overnight delivery service by the next business day, we can help our dealers get Lexus Genuine Parts to our customers faster and with more service options.”

The Atlanta PDC offers Lexus dealers a way to place a parts order at the end of the business day and have them delivered before the start of business the next morning. The PDC will also offer same-day service in some select areas where dealers can place an order in the late morning and either pick up the part at the PDC or at a centralized meeting point. With this service, dealers can have a Lexus vehicle back on the road the same day with minimal inconvenience to the customer.

Additionally, best practices that are incorporated at the PDC include:

• Strategically placed “Golden Zone” storage bins for quick and ergonomic access of the most commonly ordered parts
• The use of Order Pickers, powered equipment that lifts the operator into the air to get parts stored from the floor to the ceiling, to achieve high density storage
• Rolling deck cages used during delivery to provide damage protection for parts during transportation and to make the drop-off process more efficient

Following a series of test runs prior to facility launch, dealers have expressed highly positive feedback.

“I love the new ‘decked cages’ and bumper and molding boxes as well! Hats off to you and your team. You have exceeded our expectations in every way so far. No damage or errors at this point,” said Lexus of South Atlanta.

From around 2000, Lexus dealers in the Southeastern area have received parts through a TMS partnership with Southeast Toyota (SET) and its facility in Jacksonville, Fla. Considering the growth of their own business since that time, SET needed to regain parts storage capacity at their Jacksonville facility, which led to TMS opening its own distribution center in the region.