HDS opens first APAC distribution center

update SINGAPORE--Hitachi Data Systems (HDS) has launched its first distribution center in the region here Wednesday, marking the storage vendor's second-largest investment in the country.

Speaking at a media briefing, Frans van Rijn, senior vice president of global supply chain and chief logistics officer at HDS, said the new facility will reduce the company's carbon footprint by 36 percent, an estimate of about 780 tons of carbon dioxide per month. Previously, products were sent by air from Japan to Indianapolis, U.S. for assembly and configuration before being distributed to customer sites across the Asia-Pacific region.

According to Ravi Rajendran, vice president and general manager of HDS Asean, the investment is the company's second largest, after its S$10 million (US$7.08 million) investment in February 2009 for the launch of its Business Solutions Center and expansion of its regional headquarters.

van Rijn said HDS will pump over S$4.6 million (US$3.3 million) into the new center, its third distribution facility globally, and is planning for further expansion next month as the site is now handling 20 percent more than the expected volume.

The new distribution center will allow the company to respond faster to customer orders in the Asia-Pacific region as it is now closer to the customer base, said van Rijn. Apart from cutting down on transportation time, orders can now be processed faster because the U.S. distribution center previously could process an order only hours after it had been sent due to time zone differences.

Kevin Eggleston, senior vice president and general manager of HDS Asia-Pacific, added that the center will streamline operations and reduce transportation and warehousing costs for the company due to its close proximity to the product supplier, Hitachi Japan.

The Asia-Pacific region is the fastest-growing market for the company, said Eggleston, adding that the new facility is expected to handle about US$20 million to US$30 million worth of transactions per month.

Located at Singapore's Airport Logistics Park, the distribution center is housed within the Singapore Free Trade Zone which sits next to Changi International Airport. The current size of the facility spans 3,350 square meters and has a staff headcount of 25.