Ingersoll-Rand, Bobcat Expand Relationship with APL Logistics

3PL provider adds to worldwide parts distribution business from Ingersoll-Rand's infrastructure sector

3PL provider adds to worldwide parts distribution business from Ingersoll-Rand's infrastructure sector

Woodridge, IL — April 20, 2004 — Ingersoll-Rand Co. Ltd., the $9.9 billion diversified industrial company, is a global innovation and solutions provider with brands such as its Bobcat division, which manufactures compact industrial, construction and agribusiness equipment. The company has announced that it is expanding the role for third-party logistics provider APL Logistics in its supply chain.

"Portions of Ingersoll-Rand's Infrastructure Sector have decided to entrust APL Logistics with additional worldwide aftermarket parts distribution business," said Rich Goldsbury, Bobcat's vice president for marketing services, based in West Fargo, N.D. "We are doing this because of APL Logistics' reliability in deliveries to our dealers, their capability to add value-added services to meet contingencies and their partnership approach to supporting our changing business needs."

The company's Infrastructure Sector is composed of brands that serve diverse markets such as road and general construction, gated communities, golf courses and municipal governments, added Goldsbury.

Hans Hickler, CEO of APL Logistics, said his company is pleased to partner with Ingersoll-Rand to improve the aftermarket parts distribution channel for its Infrastructure Sector dealer network. The work will be done at the APL Logistics-Bobcat facility at Woodridge, Ill., which is being expanded to accommodate the new business.

"We will be providing a full range of logistics services to support Ingersoll-Rand's Infrastructure Sector, including Bobcat, on a worldwide basis," said Hickler. "As a result, the inventory of parts we handle will jump by nearly 75 percent, from 55,000 stock-keeping units (SKUs) to 95,000. We will be shipping to approximately 1,000 affiliated Ingersoll-Rand dealerships in 75 countries."

Hickler added that his company's services for Ingersoll-Rand utilize proprietary APL Logistics software that integrates with Ingersoll-Rand's own systems, and includes radio-frequency technology to scan parts numbers and update locations. This supports inventory visibility and control.

APL Logistics' principal services to Ingersoll-Rand include inspection and processing of returns, production of parts kits and assemblies required by customers, management of receiving and inventory activities, order fulfillment, transportation management, and related support activities.

In some cases, shipments to overseas dealers are carried by containerships operated by ocean carrier APL, sister company of APL Logistics.

"Expansion of the 240,000-square-foot logistics facility we operate for Bobcat at Woodridge has just begun and is expected to be completed in May," according to George Leon, APL Logistics' general manager at the facility. "We are adding about 117,000 square feet to the main building and another 18,000 square feet as a parts mezzanine."

APL Logistics is based in Oakland, Calif. It is part of Singapore-based Neptune Orient Lines (NOL), which specializes in global logistics and container transportation services.