Mercedes-Benz sets up Regional Logistics Centre in Johor

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Mercedes-Benz has set up a new Regional Logistics Centre Malaysia (RLCM) at the Senai Airport Free Zone in Johor. The new facility with streamlined logistics, operated by Mercedes-Benz Parts Logistics Asia Pacific Sdn. Bhd., will serve 20 countries in the Asia-Pacific region.

Mercedes-Benz Regional Logistics Centre in Johor

Spanning over 93,000 sq. metres, the RLCM is equipped with state-of-the-art systems designed to enhance material handling, flexibility, and workflow efficiency. These advanced features fortify the facility’s operational capabilities, making it a model of logistics excellence in the region.

Faster delivery to distributors
The RLCM manages the distribution of a wide range of products, mainly spare parts, accessories, and workshop tools for both Mercedes-Benz Passenger Cars and Vans within the region. Being placed in Malaysia means that distributors in the region can get parts faster than if they had to get them from Europe.

Mercedes-Benz Regional Logistics Centre in Johor

To improve logistics efficiency, the RLCM implements several cutting-edge technologies in its warehouse management system, and uses advanced forklifts, handheld scanners, and mobile workstations for greater flexibility. The Very Narrow Aisle system has been adopted to maximise storage efficiency, optimising space utilisation within the facility.

Mercedes-Benz Regional Logistics Centre in Johor

Further automation potential is foreseen in future, including automated storage systems, drones and dimensional scanners, elevating its logistics capabilities even further. Autonomous forklifts and cleaning robots are already in use to ensure a safe and clean working environment.

With a paid-up capital of RM189 million, Mercedes-Benz plans to increase its value-chain investment up to RM1.5 billion by 2035. This ongoing commitment will drive the facility’s growth through phases, enabling the brand to support future business expansion and significantly boost logistics capacity.

Environmental stewardship
Aligned with Mercedes-Benz’s global sustainability initiative, the facility aims to achieve carbon neutrality by 2039, integrating environmentally sustainable practices to meet this goal. These efforts include generating renewable energy through an on-site photovoltaic system and earning Green Building Index certification, reflecting the company’s dedication to minimising environmental impact and reducing its carbon footprint across the Asia-Pacific region. The facility meets international standards such as ISO 9001 for Quality Management and ISO 14001 for Environmental Management.

Elevating local talent pool
In addition to supporting the global supply chain, the RLCM contributes to Malaysia’s economy by creating high-value jobs and upskilling the local workforce. The facility offers comprehensive training in logistics and supply chain management, enabling local talent to thrive in a rapidly evolving industry.

Mercedes-Benz Regional Logistics Centre in Johor

“Our investment in Malaysia underscores our commitment to exceptional customer care throughout the Asia Pacific Region and highlights Malaysia’s strategic significance as a logistics hub. The new Regional Logistics Centre Malaysia is one of Mercedes-Benz’s most important logistics projects in the past decade, reaffirming our dedication to Malaysia’s economic growth and sustainability. By leveraging Johor’s strategic location and strong infrastructure, this facility enhances operational efficiency while benefiting from Malaysia’s highly skilled workforce in logistics and supply chain management, “said Jan Fischer, CEO of Mercedes-Benz Parts Logistics Asia Pacific.

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Johor popular choice for logistics hubs
Johor has long been a regional logistics hub for the BMW Group as well. In 2003, the automaker moved its parts centre from Singapore to the Port of Tanjung Pelepas (PTP) Free Trade Zone; in late 2016, it relocated to the Senai Airport Free Zone.

Two other German automakers also have their regional parts centres in Johor – BMW Group (left) and Volkswagen Group (right).

The Volkswagen Group also has its Asia-Pacific Parts Centre located at the PTP Free Trade Zone. The facility was also originally in Singapore and was moved to PTP in 2021.

Stellantis to set up Regional Parts Hub in Malaysia

 

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