BMW South Africa outsources parts distribution

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BMW South Africa has signed a three-year contract with Kuehne+Nagel for automotive parts and accessories warehousing and distribution.

The parts and distribution centre in Midrand distributes parts to the whole of South Africa, as well as five neighbouring countries.

K+N was awarded a contract to manage part of the BMW-operated logistics facility at the end of 2008. Following the transition the company decided to outsource the entire Midrand distribution operation.

K+N will be responsible for receiving, inventory control, picking and packing, handling of dangerous goods and value-added services, such as pre-packing and returns handling of BMW parts and accessories.

The 16,500 sq m facility is owned by BMW and holds around 50,000 SKUs.

After the implementation phase Kuehne + Nagel will co-operate with BMW on the continuous improvement of the car manufacturer’s supply chain processes in order to increase productivity and improve cost efficiency, introducing new tools such as the Kuehne + Nagel Production System.

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