TNT Logistics launches new parts distribution centre for BMW in US
16 November 2005 - 10:56 CET
TNT Logistics, the largest provider of global logistics services to the automotive industry, has opened a 250,000 square-foot distribution centre for BMW of North America, LLC in Stockton, California, US. Employing more than 55 people, the new distribution centre receives after sales replacement parts and accessories from more than 100 domestic and international suppliers and ships to more than 40 dealers in northern California, the Pacific Northwest, and northern Rocky Mountains.Each of BMW's five distribution centres handles parts for all lines of BMW vehicles sold in the U.S. as well as new car accessories and "lifestyle" merchandise, which includes hats, t-shirts, sporting equipment, clothing, luggage, bicycles and collectibles.
In Stockton, TNT Logistics is providing the labour, management and material handling equipment. The facility, which was built to BMW specifications, was designed to mirror other BMW distribution centres across North America and the rest of the world.
The opening of this distribution centre represents an expansion in the BMW service network. According to Alan Harris, vice president - after sales, BMW of North America, the new distribution centre will allow the company to increase improve the service it provides to dealers in the surrounding states. "Each time we add a distribution centre, we reduce the average distance between ourselves and our customers, which in turn reduces both our freight costs and carrier-related damages on outbound shipments," said Harris. The new distribution centre will also provide back-up service to other distribution centre in the BMW service network.
TNT Logistics has an 11-year history of working with BMW in the United States. BMW Manufacturing Company began producing motor vehicles in North America in 1994 when it opened its manufacturing plant in Spartanburg County, S.C. Since the plant opened, TNT Logistics has provided line-side delivery to BMW's production line and sequencing of parts and components. TNT also provides inbound supply chain management for that plant, which includes inbound material control, and transportation from suppliers to the plant.
"One of the strengths that TNT Logistics brought to the table was its strong track record for operating excellence," said Harris. "They used their Zero Defects Start-Up (ZDS) to take a deep dive approach in analyzing how we run our other distribution centres so that similar processes could be introduced at this facility. This enables BMW to have a unified approach to customer service around the country".
