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 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 seven 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 can’t expect consumers to wait that long for their parts.