BMW Group Malaysia was one of the first global automakers to establish a parts warehouse in Malaysia, not only to serve the needs of the local market but also the wider Asia Pacific region. It first established the BMW Group Regional Parts Distribution Centre in 2004 at the Port of Tanjung Pelepas (PTP) in Gelang Patah, Johor and then relocated in 2016 to the Free Industrial Zone of the Senai International Airport.
Having a facility in the Asia Pacific region means that shipments of parts to distributors in the region can be faster than having to despatch from Europe, as in the past. For BMW Group Malaysia too, it was advantageous to have the Regional Parts Distribution Centre in Malaysia because it meant easier access to parts for a wide range of models.
With the parts kept in Malaysia, BMW Malaysia could offer many models that were available in other markets and be able to have the necessary aftersales parts availability.
When the current facility began operations, it was one of the largest BMW facilities of its kind in the Asia Pacific region with 45,000 square metres of warehouse space. It handles over 100,000 lines of inventory in and out monthly, maintaining around 90% service level to over 20 diverse markets in the region. The stock consisting of nearly 52,000 part numbers includes High Voltage Batteries for the electrified BMW and MINI models.
33,000 cubic metres of airfreight delivery are made each week using Senai Airport which is adjacent to the warehouse. Another 15 units of 40-foot containers are sent via sea freight to the various markets on a weekly basis. 42 trucks transport parts overland each week for the markets of Malaysia, Singapore, and Thailand which are well connected by highways.
The facility has been expanded and the work completed in time to commemorate the 20th anniversary of the BMW Group Regional Parts Distribution Centre in Malaysia. With this expansion, the warehouse now has 65,000 square metres of space.
Together with the expansion, notable improvements have been introduced. These include a purpose-built High Voltage Battery Storage Area and a Very Narrow Aisle racking system. The facility’s 2-storey configuration provides opportunities for future expansion, while the integration of a solar panel roof supports the BMW Group’s broader sustainability initiatives.
Since beginning operations at its current site, the Regional Parts Distribution Centre has had sustained growth in its annual turnover, growing its business capabilities from 141 million euros in 2017 to 277 million euros in 2023, over 97% and almost double from when the facility first began operations.
“As we celebrate 20 years of our Regional Parts Distribution Centre in Malaysia, we reflect on the significance of this facility, not only in terms of the success of the BMW Group as the leading premium automaker in Malaysia, but also in reinforcing the status of Malaysia as a strategic logistics hub for the group in the Asia Pacific region. Since the beginning, the facility and its capabilities has stood as a symbol of operational excellence, having evolved into a state-of-the-art facility that is recognised regionally and globally,” said Benjamin Nagel, Managing Director of BMW Group Malaysia.