DENSO Products and Services Americas is opening a new distribution center in Jeffersonville, Indiana. DENSO says the new location, which will be fully operational this summer, is another milestone in its North American distribution optimization strategy, which aims to more efficiently serve its growing customer base throughout North America, as well as leverage IoT technologies and improve safety.

In addition to Jeffersonville, DENSO recently opened a distribution center in Rancho Cucamonga, California. This additional space near customers will reduce transit times and enhance operations, including management, control and execution, DENSO says. The two centers will help the company achieve higher fill rates, manage efficient inventory, control cost and meet growth targets.

“With our distribution strategy, we are embracing innovation to build the future of mobility. The center in Jeffersonville is strategically located to help meet the rising demand for DENSO’s top-quality replacement auto parts in the Northeast and Midwest,” said Kazu Yanagawa, vice president of DENSO’s Supply Chain Management Group. “This new distribution center gives us next-day ground transportation access to the entire region.”

DENSO is investing more than $9.5 million to lease and equip the new center in Jeffersonville. Of that investment, $3 million is being dedicated to technology, such as warehouse management software to control inventory, optimize supply chain management and enhance customer service. Hiring is underway to add up to 50 new full-time jobs, including warehouse, management and administrative positions.

DENSO’s job creation plans position the company for state incentives of up to $325,000 in tax credits and up to $50,000 in training grants from the Indiana Economic Development Corporation, as well as incentives from Jeffersonville. The center is in the River Ridge Commerce Center, a 6,000-acre business, industrial and technology hub alongside the Ohio River with multimodal connections to consumer markets nationwide.