Through this new business, the company will address customers' needs for value-added warehousing and distribution. Meritor Aftermarket Services - which launches initially in North America - will be the "third leg" of ArvinMeritor's Aftermarket and Trailer business.
Tim Bauer has been appointed director of business development for the new segment and will lead the global market strategy implementation.
ArvinMeritor has spent the last 35 years building a portfolio of services such as packaging, warehousing and distribution to serve a global market, Bauer explained. Now it's offering that aftermarket distribution expertise and scale to other aftermarket and truck makers and suppliers -- even to competitors, if they're interested.
Services include aftermarket growth, consulting services, packaging, kitting, transportation management, distribution, remanufacturing, globalization, customer support, reverse logistics, materials management, line sequencing, and systems and technology.
Asked about the difference between this service and the many transportation third-party-logistics providers out there, ArvinMeritor officials explained that those types of companies don't have the type of packing and shipping experience ArvinMeritor does. And because they will be delivering to the same distributors, dealers and other customers ArvinMeritor does, customers will be able to get better transportation rates than they would on their own.
"We have a global footprint; we know this aftermarket business," explained Terry Livingston, general manager-North America, for ArvinMeritor's Commercial Vehicle Aftermarket. He said, for instance, potential customers could be companies that want to grow their business in China but don't have the capital, contacts and knowledge to handle that volume of business.
Contract remanufacturing is another service that will be offered under the Meritor Aftermarket Services brand.
"This new segment creates the opportunity for us to become a major player in the global third-party logistics marketplace," said Craig Cartmill, general manager, Worldwide Aftermarket Operations for ArvinMeritor. "We are uniquely positioned to use our strong North American presence and brand recognition to launch this business segment. And, as we continue to develop our global infrastructure, we will be prepared for additional business opportunities and expansion in the third-party logistics marketplace."