TNT Logistics North America (Jacksonville, Fla.) has opened a 250,000 square-foot distribution center for BMW of North America, LLC in Stockton, Calif. Employing more than 55 people, the new distribution center receives after sales replacement parts and accessories from more than 100 domestic and international suppliers and ships to more than 40 dealers in northern California, the Pacific Northwest, and northern Rocky Mountains.
Each of BMW’s five distribution centers handles parts for all lines of BMW vehicles sold in the U.S. as well as new car accessories and “lifestyle” merchandise, which includes hats, t-shirts, sporting equipment, clothing, luggage, bicycles and collectibles.
In Stockton, TNT is providing the labor, management and material handling equipment. The facility, which was built to BMW specifications, was designed to mirror other BMW distribution centers worldwide.
The opening of this distribution center represents an expansion in the BMW service network. According to Alan Harris, vice president – after sales, BMW of North America, the new distribution center will allow the company to increase improve the service it provides to dealers in the surrounding states. “Each time we add a distribution center, we reduce the average distance between ourselves and our customers, which in turn reduces both our freight costs and carrier-related damages on outbound shipments,” said Harris.
The new distribution center will also provide back-up service to other distribution centers in the BMW service network. “If a customer orders a part from his dealer in New Jersey and the closest distribution center doesn’t have that part in stock, we will ship from any of the other four distribution centers, including Stockton, to ensure the customer receives what they need, when they need it,” added Harris.
TNT has an 11-year history of working with BMW in the United States. BMW Manufacturing Company began producing motor vehicles in North America in 1994 when it opened its manufacturing plant in Spartanburg County, S.C. Since the plant opened, TNT has provided line-side delivery to BMW’s production line and sequencing of parts and components. TNT also provides inbound supply chain management for that plant, which includes inbound material control, and transportation from suppliers to the plant.
Source: TNT Logistics North America