Nov. 12, 2007 – BMW North America will expand distribution efforts
November 12, 2007
Filed under Features
In an effort to improve its next-day parts shipping, BMW of North America will open two new U.S. parts distribution centers, one in the Midwest and one in the Northeast.
“Our existing parts centers are operating near capacity now and whenever possible we are committed to providing next-day parts delivery to BMW retailers,” Alan Harris, vice president of aftersales for BMW of North America, said in a press release.
The new warehouses — a $173 million investment by BMW — will supply both motorcycle and automotive spare parts, according to a BMW press release.
The company’s PG&A sales for its motorcycles have experienced 5-8 percent annual growth in the past several years, Roy Oliemuller, motorcycle communications manager for BMW of North America, told Powersports Business.
The new warehouses could not only increase that growth but aid the company in broadening its parts offerings.
“The decision to increase the number of distribution facilities is primarily supported by the desire to speed delivery times to dealers for the volume components, thereby increasing customer satisfaction with servicing issues,”?Oliemuller said. “In addition, we are looking at the diversity of products we offer (not solely one brand or product), and the new facilities certainly allow us to offer a wide range of products.”
In building these warehouses, BMW has partnered with ProLogis, the world’s largest owner, manager and developer of distribution facilities, according to the press release.
The new warehouses will be located
in Lower Nazareth, Pa., and Minooka, Ill.,
with both expected to be open in the
third and fourth quarters of 2008.
The Minooka plant, located in suburban Chicago, will create more than 40 jobs when the facility is fully operational. Completion of the 306,000 square feet facility is scheduled for August. The eastern Pennsylvania plant will be larger, 870,000 square feet, and employ more people, more than 100, the company reported. That facility, which can be expanded to 1.4 million square feet, is scheduled to be completed in December 2008.
As part of its partnership, BMW has sold its Mt. Olive, N.J., distribution facility to ProLogis. BMW will continue to occupy the Mt. Olive facility until completion of the Pennsylvania facility.
BMW of North America also has three other regional distribution centers in the?U.S. in Senatobia, Miss., Jacksonville, Fla., and Ontario, Calif.
The new distribution centers will be
built according to standards developed by
the U.S. Green Building Council, meaning the facilities will have sustainable design and
construction techniques, including extensive use of recycled construction materials, energy-efficient fluorescent lighting and water-efficient irrigation. psb