Wednesday 23rd Sep 2020 - Logistics & Supply Chain

BMW opens biggest parts DC outside Germany

BMW has opened its biggest Regional Parts Distribution Centre outside Germany in Korea. The 57,000 sq m DC south west of Seoul is three times the size of the existing DC.

It is made up of a total of six buildings including a main warehouse, two storage areas for hazardous goods, storage for pallets, a welcome house and a security building, the BMW RDC has a large parking lot and an artificial marsh together with convenience facilities for the employees, such as a park, cafeteria, a walking trail and a welcome centre.

Wolfgang Baumann, vice president of parts logistics management at the BMW Group, said, “BMW has established 40 large-scaled distribution centres across the world where over 400,000 parts are available for supply to ensure effective response to customer needs.

“With the opening of the new RDC, we have secured an expanded logistics system to successfully supply two million parts a year to our dealers and customers.”

The company has invested KRW 130 billion in the facility which opened 14 months after the ground-breaking ceremony in March 2016.

The number of parts in storage at the new BMW RDC is approximately 75,000. This is more than double the volume in existing RDC, counting approximately 35,000. In addition, compared to the existing distribution centre in Icheon, the parts loading rate has been optimized from 95 per cent to 75 per cent.

When the Eurasian railway line starts its operation in 2019, the railway route will be added to the existing air and maritime transport links. Accordingly, the speed and stability of parts supply is expected to increase. The BMW RDC has also set up a strategy to strengthen cooperation with a number of countries including China, Japan and Malaysia where BMW Group national sales companies are also located, and improve its status as a key logistics hub in the Asia–Pacific region.

This new operation is expected to produce direct and indirect benefits for customers. With the part types in storage further diversified and more efficient logistics system implemented, lead-times to each dealership will be minimised and parts delivery times will be shortened. This is naturally expected to reduce overall repair times for customers. In addition, the emergency and same-day delivery services, which are already provided to each dealership, will be expanded.

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