Closer to most Hitachi customers, the new facility will significantly improve response time and service to customers, while also reducing transportation costs.
30 September 1999 — Hitachi Data Systems today announced groundbreaking for its new distribution and warehouse facility in Plainfield, Indiana, a suburb of Indianapolis. The planned 450,000-square-foot facility is scheduled to begin operation on April 1, 2000 with a staff of 100 people. By locating its distribution center in Indiana, which is within 24 hours by truck of 74 percent of its customer base, Hitachi will be able to provide next-day product delivery to most of its customers. The new facility will eventually replace current distribution centers in San Jose, California and Laurel, Maryland.
"This project signals more growth in the high-tech industry for Indiana, and it also builds on our strong logistics foundation,"said Indiana Governor Frank O'Bannon. "We know that Indiana is a great place to do business, and we're happy that Hitachi knows that, too. The Hitachi people are leaders in their industry, and we're proud to welcome them to Indiana."
"Improving service to our customers is a top priority," said Dave Roberson, Hitachi Data Systems' Executive Vice President of enterprise resources. "The convenient location of our new state-of-the-art distribution facility will allow us to do that by reducing delivery time for our products. It will also allow us to ensure that a cost-efficient logistics structure is in place to handle the anticipated increase in product volume in the next few years. In addition, we are pleased to become a new member of the growing Indiana high-tech community and look forward to contributing to the local economy."
The new center will help to save several million dollars within the first years of operation as a result of reduced costs in transportation, labor, real estate, and warehousing. Hitachi will also be able to optimize and streamline its supply chain, minimize disruptions to inventory, and fully leverage distribution capacity. Located close to one of Federal Express Corp.'s hubs, Hitachi will improve spare parts response time and lower airfreight costs with easy access to direct flights from manufacturing facilities in Japan. Direct Federal Express flights are also available from Indianapolis to Europe and Latin America.
Along with the development of the new facility, Hitachi will outsource most of the management and operation of distribution. North American Van Lines, a $1-billion, Fort Wayne, Indiana-based logistics service provider, was hired to take on the task, having served as Hitachi's trucking service provider for 10 years. North American's logistics division will work closely with Hitachi staff, which will provide the technical knowledge and expertise necessary for configuring and testing various products. Indianapolis-based Duke-Weeks Realty Corp., which is the nation's largest mixed office/industrial real estate company, will build the facility and manage the property, as well as sponsor the groundbreaking ceremony.
Referred to as the "Crossroads of America" because it is located within a day's drive of 50 percent of the U.S. population, Indiana will make Hitachi the latest member of its high-tech business community. The state has created a $50-million research and technology fund to target high-tech, high-wage, and high-scale jobs for the state. The Plainfield Business Park location was convenient for Hitachi since Interstate 70, the nation's busiest trucking route, is easily accessible. Hitachi is one of the first large high-tech companies to establish business there.
Recognized as a leading provider of business solutions for the world's most IT-intensive corporations, Hitachi Data Systems offers professional services, multiplatform storage subsystems, and the industry's broadest line of high-performance servers. The company's extensive range of products and services, coupled with its business alliances with key industry leaders, enable it to transform IT into business agility for high-end and middle-market customers. Hitachi Data Systems is owned by Hitachi, Ltd. (NYSE:HIT) and has its headquarters in Santa Clara, California.
Contacts: PR: Hitachi Data Systems
Hitachi Data Systems is registered with the U.S. Patent and Trademark Office as a trademark and service mark of Hitachi, Ltd.
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