Inside Hino’s $18M parts hub: How the brand keeps trucks moving

As Hino Australia’s 9,272m² Parts Distribution Centre (PDC) in Horsley Park approaches five years of operation, the company is reflecting on the transformative impact the site has had on its supply chain and customer service.

Since relocating from its former Taren Point site in 2021, Hino has recorded a 37 per cent increase in parts sales, underpinned by significant gains in inventory capacity and picking efficiency.

For Greg Bleasel, Vice President of Product Support at Hino Australia, the facility represents the culmination of a journey that began when he joined the company as a Department Manager more than 31 years ago.

Back in 2018, market growth meant Hino’s former warehouse was nearing capacity, forcing the company to consider either additional storage sites or one large-scale facility to support its ambitions in the Australian truck market.

"We projected that we were going to grow another 52 per cent between 2018 and 2025 and the risk was that we wouldn't be able to store the parts and support that growth," Bleasel said.

“The scale of our ‘truck park’ increased parts sales by 24 per cent in the five years to 2021, which ultimately made a new facility essential.”

The pressure was especially acute for larger components, with projections showing the warehouse would be at capacity as early as 2022 without expansion.

“Large components such as cabs would have been at full capacity by 2022, so we needed to do something by 2021 otherwise essentially we had nowhere to put the parts and we'd have to start storing them outside.”

Unlike the repurposed Taren Point warehouse, the $18 million Horsley Park PDC was designed from the ground up to maximise flow, efficiency and safety.

Planning began in 2018, with Hino working alongside industry experts to model walking and picking routes.

The operational gains following the move have been significant, particularly in inventory management and picking performance.

Hino has lifted inventory stock levels by more than 50 per cent since the transition, with the centre now holding over 500,000 individual parts.

The total value of parts on hand has increased from $19.5 million to approximately $25.5 million as a result of the expansion, Bleasel added.

Picking efficiency has also improved markedly, with the facility now achieving 54 lines per hour — a 69 per cent increase over the previous PDC.

These improvements directly benefit the dealer network, with Hino maintaining a 97 per cent supply rate.

“What that means is that if a dealer puts in any order, no matter what it is, 97 per cent of the time we can fill it on the spot, which is well above industry standard,” Bleasel said.

“We can also generally supply our dealers with stock within a day.”

Efficiency gains have not simply come from increased floor space. In a counter-intuitive move, Hino reduced racking height from eight metres to six metres, reducing the need for specialised high-reach equipment and improving worker safety.

The transition was not without challenges, with construction taking place during the height of the COVID-19 pandemic.

Strict trade restrictions and shipping delays — including waiting on specialised racking imported from Turkey — added further complexity.

Despite these hurdles, the facility opened on schedule and is strategically located near the M4 and M7 motorways and the future Western Sydney International Airport at Badgerys Creek.

While the ultimate goal of the PDC is reducing downtime for truck operators, its day-to-day focus is supporting dealers with same-day dispatch for almost every part they may require.

“The PDC has strengthened our supply-chain network and delivered a consistently higher supply rate,” Bleasel said.

Hino has also extended its same-day dispatch cut-off during daylight savings, moving it to 4:30pm.

For urgent requirements, the centre offers a 24/7 callout service, with the warehouse able to be opened outside standard operating hours. However, after-hours service comes at a price premium, Hino added.

Beyond its own four walls, Hino uses the PDC as a blueprint for dealers operating smaller parts centres, running training and development programs at its on-site facility.

Dealers such as City Hino in Arndell Park have already invested heavily in upgrades, expanding from 6000 storage locations to more than 20,000 without relocating.

“They’ve done it by building a mezzanine level and storing their parts correctly…and their supply rate to the customer has improved by five per cent because they're holding more parts readily at the dealership,” Bleasel explained.

Looking ahead, Hino holds a 10-year lease on the Horsley Park site and has secured first right of refusal on an adjacent mirrored warehouse, providing scope to double its footprint if required.

Even within the current building, further expansion is possible through mezzanine additions, while a 20 per cent reserve area has been retained for future growth.

After touring the facility with PDC Manager Anthony Seisun, it is clear Hino’s investment in its state-of-the-art parts hub is ultimately an investment in its customers — ensuring parts are available when they are needed most.