Encompass Streamlines Midwest Footprint to Advance Growth Strategy
Significant counter sales improvements also underway
Encompass Supply Chain Solutions, a leading national provider of replacement parts and supply chain services for a diverse range of product brands, announced it is consolidating four distribution facilities clustered in Ohio and Indiana.
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These facilities are among 12 appliance parts counter sales and distribution centers previously maintained by Dayton Appliance Parts (DAP), which has merged with Encompass. The consolidating facilities are in Cincinnati; Indianapolis; Dayton, Ohio; and Castleton, Ind. Their operations will be combined with other nearby Encompass facilities in Cincinnati, Dayton and Metropolitan Indianapolis. The company’s Blue Ash, Ohio warehouse is being transitioned to another distributor.
Additionally, the Dayton facility will transition from primarily a distribution center to focus on counter sales and managing major client programs, such parts supply chain management (4PL). The Greenwood, IN facility will also now be a counter sales location. These facilities will be upgraded to provide a highly merchandised customer experience. Encompass existing operations in Florida, New York, Georgia and Nevada will continue operating as normal.
Joe Wang, Encompass chief strategy officer, said the decision to consolidate the specific four locations was based on service area, building condition, employee impact and other criteria. He said employees at the affected facilities have been offered other roles within the business.
“Dayton Appliance was a strong regional supplier, so having multiple locations in close proximity worked well at the time,” said Wang. “However, Encompass is a national parts supplier, so we had to analyze our entire footprint and determine the best way forward in alignment with our overall business goals.”
Wang said one of Encompass’ key objectives is to expand next-day order delivery to customers coast to coast. As such, the company is investing millions of dollars to add more warehouse automated functionality and expedite throughput.
“In our business, customers can’t wait days on end for a part to come in to repair their refrigerators or laptops or heating and cooling units. They must have their critical appliances and electronics working again yesterday. Encompass is working very hard to help speed up the repair cycle through faster parts delivery.”
Encompass President and CEO Robert Coolidge added that Encompass is continuing to experience record transactional volume, which requires the company to stock more inventory in more places. He said the company is evaluating other areas around the country to open new distribution centers.
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“We’ve got immense coverage in the Southeast, Northeast and Midwest, enabling us to reach a majority of the U.S. population in two days or less,” said Coolidge. “We are now evaluating other locales to help us extend that reach further,” said Coolidge.
The Appliance parts market remains a driving factor in the company’s growth, as well as a surge in support for major customer segments like Home W*******, Extended W******* and Multifamily Property Management. Encompass also manages the parts supply chain for a number of world-leading brands, including Sony, Panasonic, Liebherr, Braun, Philips and others.
With the integration of Dayton Appliance Parts and the backing of Parts Town – Encompass’ parent company and market-leading distributor of original equipment manufacturer (OEM) foodservice parts – the company is even better positioned to support the repair industry, said Coolidge.
“Going into 2023, our 70th year in business, we could not be more excited about where we’re headed. Foremost, we are committed to delivering an exceptional experience for our customers. Everything we do operationally centers around helping our customers be more successful.”
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