Kuehne + Nagel Awarded Contract for Warehousing and Distribution by BMW

Logistics Insight Asia - Industry News, 28/12/2009

Kuehne + Nagel has been awarded a contract to manage the BMW South Africa Parts and Accessories Distribution Centre in Midrand. From the facility, parts are distributed to the whole of South Africa as well as to five neighbouring countries.

At the end of 2008, the former was awarded a contract to manage part of the BMW-operated logistics facility in Midrand. After this successful transition, the decision to outsource the entire Midrand distribution operation was made by the Management Board of BMW South Africa.

The former was awarded a three-year contract to manage the entire national parts distribution center. The scope of services that it will be providing consists of receiving, inventory control, picking & packing, handling of dangerous goods and value-added services, such as pre-packaging and returns handling of BMW automotive parts and accessories.

The 16,500 sqm facility is owned by BMW and holds around 50,000 stockkeeping
units. After the current implementation phase, both companies will cooperate 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.

Kuehne + Nagel, www.kuehne-nagel.com