BMW Group opens the biggest New Regional Parts Distribution Center in Korea outside Germany

On May 30, BMW Group Korea (CEO: Dr. H.J. Kim) opened the new BMW Regional Distribution Center (RDC) in Anseong, Gyeonggi-do. This is the largest among all of BMW Group’s global national sales companies.

KRW 130 billion invested in Korea - creating BMW Group’s largest logistics hub

Opened just 14 months after the groundbreaking ceremony in March 2016, the new BMW RDC, with KRW 130 billion invested, covers a total area of about 57,000m² on a site totaling 211,500m² in Joil-ri, Yangseong-myeon, Anseong-si, Gyeonggi-do.

Approximately 3 times the size of existing distribution center and 30 times larger than a football field, the BMW RDC in Korea is now the largest among all of BMW’s global RDCs with the exception of the headquarters in Munich, Germany. Comprised of a total of 6 buildings including main warehouse, 2 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 center.

The BMW RDC is located in the southwestern part of the greater Seoul metropolitan area. It is within a one-hour drive from Incheon International Airport and Pyeongtaek Port and has swift connections with four major expressways—the Jungbu, Pyeongtaek–Jecheon, Seohaean, and Yeongdong.

In addition, when the Eurasian railway line starts its operation in 2019, railway route will be added to the existing air and maritime transportation 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 thus improve its status as a key logistics hub in the Asia–Pacific region.

Faster parts supply to lead to reduced repair times for the benefit of customers

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 center in Icheon, the parts loading rate has been optimized from 95% to 75%, ensuring efficient handling of a large amount of parts. As the retention rate improves, the BMW RDC will supply parts swiftly to each dealership.

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 minimized 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.

At the BMW RDC opening ceremony, Wolfgang Baumann, vice president of Parts Logistics Management at the BMW Group, said, “BMW has established 40 large-scaled distribution centers across the world where over 400,000 parts are available for supply to ensure effective response to customer needs.” Mr. Baumann emphasized, “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.”

Eco-friendly and ergonomic design for workers’ health and safety

In line with its expanded scale, the parts processing capacity of the new BMW Group Korea RDC has been improved by more than three times compared to the previous RDC by 12 docks each for both inbound and outbound operations of the warehouse along with four extension docks. As for parts storage, approximately 86,000 shelves have been installed to secure a sufficient loading area. In addition, for the ultimate data protection against unexpected accidents, the IT system has been fortified with redundant wiring and backup power supply for all electric systems throughout the buildings, while the state-of-the-art RF scanner improves the system even further.

Moreover, ergonomic designs have been extensively incorporated to protect the health of employees working at the site. The floors meet tough AR1 requirements for surface abrasion resistance (British Standards 8204) and guarantees a lifespan of more than 30 years. In consideration of the health of workers, dust-free materials were used to create a pleasant working environment.

Significantly, all lighting in the facilities is equipped with motion sensors that automatically turn on or off as people walk by. This feature alone is expected to lower energy consumption by approximately 40%. At the same time, the dual heating system will minimize temperature differences between the floors and high ceilings to maintain an optimal temperature all year round.

Fire prevention have also been thoroughly prepared. 13,000 ESFR (Early Suppression Fast Response) sprinkler heads were installed throughout the warehouses for early suppression of any fire, and all structures were built using non-flammable mineral wool panels. In addition, for all firefighting devices installed throughout the entire RDC including fire shutters and screens, only UL and FM certified products were used, while 900 tons of water is stored underground for an emergency situation.

In particular, the new RDC boasts an eco-friendly green zone. With a rape flower garden, the garden zone is packed with 21,000 trees including King cherry, birch, Japanese cornel, and dawn redwood.

BMW strengthens investment in the Korean market

The BMW Group, although a foreign enterprise, is fostering the value of social sharing in Korea by promoting joint growth with local communities through economic and cultural infrastructure investments. In addition to social contribution to Anseong, the new RDC is expected to generate direct and indirect benefits by creating approximately 600 jobs. Following completion of the warehouse, a site expansion to a scale of 31,000m² in total area is scheduled.

“The BMW RDC in Anseong is an outcome of the BMW Group’s full support to and extensive investments in Korea,” said Dr. H.J. Kim, the BMW Group Korea CEO. “The new RDC will enable us to provide premium customer service as it supplies parts swiftly and effectively not only in the capital region, but also across the country. It will soon advance to be a new global logistics hub.”

Meanwhile, the BMW Group is focusing on infrastructure investment in Korea for Korean society and consumers, such as building the BMW Driving Center, the only comprehensive automotive cultural complex in the world, the world's fifth R&D Center, and the largest RDC in Asia.

BMW Regional Distribution Center (RDC)

Address: 1842, Nambuk-daero, Yangseong-myeon, Anseong-si, Gyeonggi-do, Korea (210-1, Joil-ri)