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BMW Opens the Fifth Regional Distribution Center in China in Shenyang
A Preliminary Completion of BMW’s Aftersales Logistics Network, A Major Milestone of BMW Localization Strategy

October 27, 2016

(Shenyang) On October 18, 2016, BMW celebrated the grand opening of its newest Regional Distribution Center (RDC) in Shenyang, the fifth in China together with the existing RDCs in Shanghai, Beijing, Chengdu and Foshan, marking the preliminary completion of BMW’s aftersales logistics network and a milestone of its localization in China. The new RDC Shenyang will create synergy with BMW Plant Tiexi to further respond to the increasing customer demand in the Northeast region and meet the company’s strong business growth.

‘The RDC Shenyang is another major move of BMW Group in its investment in China and long-term commitment to the Northeast region, which also reflects our aftersales strategy in China. It will provide an efficient logistics support for comprehensively increasing customer satisfaction,’ said Mr. Claus Eberhart, Vice President of Aftersales, BMW Brilliance Automotive Ltd.. ‘The new RDC will reduce the time of order response and parts delivery for the dealers in the Northeast region and ensure the quality of parts, as well as supporting dealers in other regions in China to provide a higher-level of customer experiences.’

Efficient logistics network adopted BMW’s international standards

Located at Shenyang Economic and Technological Development Zone and close to BMW Plant Tiexi, the RDC Shenyang has a Phase I area of 15,000 sq. m. and a planned Phase II area of 25,000 sq. m., in together with other 4 RDCs in China reaching a storage capacity of more than 80,000 kinds of parts, lifestyles and accessories. The new facility is in full compliance with BMW’s global standards and uses global leading logistics technologies, with built-to-suit single-story warehouses and shelf system to provide a sufficient storage space. The state-of-art hardware and software, together with BMW’s efficient integrated logistic system, will provide a strong assurance of the facility’s efficient operation.

After its put into use, the RDC Shenyang will proceed more than 1,800 lines of dealer orders per day and achieve that order replenishment can be processed within 24 hours to substantially reduce customers’ waiting time. The RDC will plan order and distribution routes according to dealer needs to accomplish same-day delivery, tertian delivery for urgent orders, and 3.5-hour same-city delivery, to comprehensively meet different needs of customers. In addition to fulfilling the increasing demands of the dealerships in Northeast region, the RDC Shenyang will synergize with other BMW RDCs in China to meet the needs of dealers all over the country for a substantially increased warehouse capacity and order processing efficiency.

It merits mentioning that the RDC Shenyang will expand BMW’s conventional delivery modes of maritime shipping and air transport by providing for the first time the option of delivery via an international railway route between Germany and China. This will integrate the Northeast region with the “One Belt, One Road” strategy via the Trans-Siberian Railway to form an integrated land, maritime and air logistics system for efficient resource allocation and common development along the Silk Road economic belt.

Boosting regional economy and enhancing aftersales network

With the implementation of China’s new strategy to revitalize the Northeast region, the three provinces in the Northeast region will have extensive leading advantages in terms of government support, logistics and human resources. The establishment of the RDC Shenyang will not only contribute to the revitalization of the northeast in terms of infrastructure investment and job creation, but also meet the massive business needs in the northeast region to further enhance customer services. A widespread logistics network will give BMW the chance to look for new cooperation opportunities, which will spread the synergy to the Chinese market and even the Asia Pacific region.

As a leading brand in China’s automobile aftersales industry. BMW always puts customer satisfaction in the first place in line with its aftersales strategy of ‘Maintaining Joy’, and commits itself to the long-term development in China market. In recent years, BMW has launched a series of aftersales services geared to reducing customers’ cost of ownership and increasing their appreciation of BMW aftersales’ ‘trust, convenience and care’ values through the high-quality premium services. The opening of the RDC Shenyang will further achieve an even higher level of customer satisfaction through an expanded and efficient logistics network.

The establishment of RDC Shenyang is another strong evidence of BMW’s localization strategy, showcasing its determination to take root in China and the long-term commitment to the Chinese market. In the future, BMW will further strengthen its aftersales network to provide customers with premium services in even higher standards and achieve sustainable development of the company, its partners and the entire society.

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