AMSOIL Distribution Network Enhancements for Improved Efficiency and Service

AMSOIL Distribution Network Changes: Enhancing Efficiency and Service

AMSOIL, known for its high-quality synthetic lubricants, has seen remarkable growth in recent years. This growth, driven by the efforts of independent Dealers and the corporate team, brings both opportunities and challenges. To meet these challenges and continue on the path of progress, AMSOIL is making significant changes to its distribution network. These changes, effective October 31, 2024, include the closure of distribution centers in Richmond, Virginia, and Wichita, Kansas, and the expansion of other facilities. This article will detail how these changes will enhance efficiency, improve service, and benefit AMSOIL's customers and Dealers.

What is AMSOIL Distribution Network Changes?

AMSOIL's distribution network changes involve closing two distribution centers and expanding others to larger facilities equipped with advanced technologies. These changes aim to improve order processing speeds, increase product availability, and enhance overall customer service.

Reasons for the Changes

Addressing Capacity Limits

The Richmond and Wichita distribution centers (DCs) have limited capacities. This limitation affects the volume of products that can be maintained and the size of the team that can operate at these locations. By moving operations to larger facilities, AMSOIL can hold higher volumes of products and expand their teams, thus ensuring better service and reducing backorders.

Implementing Advanced Technologies

The new, larger facilities will be equipped with advanced technologies to streamline picking, packing, and shipping processes. This technological upgrade will enable faster order fulfillment and more efficient operations, ensuring that customers receive their orders promptly.

Enhancing Service Levels

A larger facility with an expanded team can better handle unexpected absences and other unforeseen issues. This improvement means that service levels will remain high even during challenging times, ensuring that customers receive consistent and reliable service.

Impact on Customers

Delivery Times

AMSOIL expects minimal impact on delivery times for most customers. While some orders may take slightly longer to reach certain customers, the commitment to deliver within two to three business days remains firm. The advanced technologies and increased capacity at the new facilities are designed to maintain, if not improve, current delivery standards.

Communication with Customers

Dealers should proactively communicate these changes to customers who regularly pick up orders at the Richmond or Wichita DCs. Customers living close to these DCs should be informed that orders may take slightly longer to arrive, so they have accurate expectations.

Benefits of the Changes

Higher Product Availability

Larger facilities will enable AMSOIL to maintain higher volumes of products in the field. This improvement will reduce the occurrence of backorders and the need for separate shipments from other DCs, providing a more seamless experience for customers.

Improved Efficiency

Advanced technologies at the new facilities will enhance the efficiency of order processing. Faster picking, packing, and shipping mean quicker delivery times and better overall service for customers.

Enhanced Staffing Capabilities

With larger teams at the new facilities, AMSOIL can better manage staffing challenges. Unexpected absences will have less impact on operations, ensuring that service levels remain high and consistent.

Long-Term Commitment to Improvement

AMSOIL is committed to continually monitoring and evaluating all aspects of its business to optimize and improve wherever possible. This commitment includes consulting with external experts to ensure that changes are beneficial to both Dealers and customers. The decision to close the Richmond and Wichita DCs was made after thorough examination and careful consideration, with the ultimate goal of maintaining high levels of service and efficiency as the company continues to grow.

By enhancing its distribution network, AMSOIL is positioning itself for future growth and continued success. The changes to the distribution centers are a strategic move to ensure that AMSOIL can meet increasing demand while maintaining the high standards of service that customers have come to expect. As the company evolves, these improvements will play a key role in sustaining its reputation for quality and reliability in the synthetic lubricants market.