Automotive customer story: BMW

With an increased demand for BMW vehicles and a target to reduce lead times for spare parts coming from overseas, BMW needed more warehouse space to cater for the growth. 

Challenge

BMW has experienced significant growth since it first moved into its original spare parts facility in Moorebank Business Park, Sydney in 2007. Over the last ten years or so, the BMW vehicle portfolio has increased from approximately 70 models to 125 models, creating the need for thousands of additional spare parts to be stored for customers.

This increased product range combined with a substantial growth in sales has the spare parts division generating approximately $192 million annually, compared to $90 million back in 2008.

As the product range has increased, so have consumer expectations about product delivery, so BMW has been focused on improving the availability of spare parts to consumers here in Australia. BMW’s spare parts come from Germany which can take from 7 days up to 110 days to arrive, depending on the mode of transport (air freight versus ocean freight). BMW’s preference is to use ocean freight given the lower costs and reduced breakage, however it recognises it just can’t expect consumers to wait that long for their parts. 

Goodman solution

BMW had really enjoyed its location at Moorebank Business Park, due to its excellent connections to Sydney’s major arterial roads, airport and port, all of which were critical in BMW’s supply chain management to meet its distribution requirements.  

When it was time to think bigger, Goodman devised a clever solution to add an extension to its existing 12,286 sqm facility. 

Goodman worked closely with BMW’s onshore and offshore stakeholders to design and deliver the 8,000 sqm, high-clearance warehouse extension that would  provide the additional warehouse space that allows the storage of more inventory and help reduce lead times for customers to receive their spare parts. 

Additional enhancements included:

• Replacement of the facility’s IT infrastructure in line with updated BMW IT specifications
• Replacement of the existing warehouse high-bay lighting with energy efficient LED lighting
• Supply and installation of a photovoltaic solar panel system