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 RD 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)