[Report] "Car Parts Delivered at Dawn" Inside BMW Anseong Logistics Center

Additional 65 Billion KRW Investment in Largest Imported Car Parts Logistics Center
BMW and Mini Expand Maintenance and Parts Supply Services
AI-Based Parts Demand Forecasting... Equipped with Fire Prevention Facilities

On the 11th, we visited the BMW Korea Parts Logistics Center (RDC·Regional Distribution Center) located in Anseong, Gyeonggi-do. About an hour and a half from downtown Seoul, an overwhelmingly large logistics center the size of eight soccer fields came into view upon arrival.

BMW invested 130 billion KRW in 2017 to build the largest parts logistics center among imported car brands in Korea at this location. They have additionally invested 65 billion KRW to expand the Anseong parts logistics center, currently 57,000㎡, to 88,000㎡ by 2027. Once construction is complete, the size will increase to that of 12 soccer fields. With the increased area, the storage capacity for parts will also grow by more than 50%.

At this logistics center, parts are shipped three times a day within the metropolitan area. Thanks to precise ordering and delivery, if a dealer places an order in the morning, delivery is possible by 5 p.m. the same day. Even if ordered in the afternoon, parts are delivered before 7 a.m. the next day after overnight shipping. Dealers in the metropolitan area can receive parts by 5 p.m. the same day if they order before 1 p.m.

Jung Sang-cheon, Head of AS Headquarters, said, "Currently, there are about 740,000 BMW and Mini vehicles running on Korean roads. To meet the corresponding service demand, we are increasing work bays and providing the best maintenance service by supplying parts three times a day."

A view of the shipping yard at the BMW Korea Parts Logistics Center in Anseong, Gyeonggi-do. Provided by BMW Korea.

Arriving at the Anseong logistics center around 11 a.m. that day, the first delivery had just been completed, and the second delivery was about to begin. On the 14 conveyor belts reminiscent of a courier company’s warehouse, boxes of various sizes were placed. Unlike regular courier companies, every box bore the logo "BMW Genuine Parts." The dashboard inside the shipping area displayed packaging and shipping status in real time.

BMW Anseong Parts Logistics Center uses big data and demand forecasting algorithms from the AI parts supply system called SRD (Supply·Replenishment for Dealership) to analyze and predict the demand for parts supplied to 102 service centers nationwide by season and timing.

Head Jung said, "Since the costs of supplying parts via air and sea freight differ, accurate demand forecasting is necessary," adding, "Using AI-based algorithm software systems, we have increased parts utilization rates to 95%."

Sprinkler installed on the storage rack inside the BMW Korea Anseong Parts Logistics Center. Provided by BMW Korea.

Another strength emphasized by BMW regarding the Anseong parts logistics center is its fire safety prevention system built to global standards. The center was designed to meet the highest level of fire prevention regulations set by FM Global, the world’s largest property insurance company. Sprinklers were easily found throughout the center, including on ceilings and parts storage racks. There are 13,000 sprinkler heads installed inside the center. The entire facility stores 900 tons of firefighting water, enough to spray water for two hours.

BMW Korea plans to establish a dedicated warehouse for electric vehicle batteries with this additional investment. The new dedicated EV battery warehouse will also apply these stringent fire prevention regulations. Building fire prevention facilities according to international standards accounts for about 40% of the factory establishment cost, making it a significant expense.

Nevertheless, BMW is preparing for the full-scale electric vehicle era by constructing a separate dedicated EV battery warehouse and fire prevention facilities. Head Jung emphasized, "Storing high-voltage batteries in the same building as regular parts poses a high fire risk, so we will operate a separate dedicated warehouse," calling it "a proactive investment for the future."

Interior view of the BMW Korea parts logistics center located in Anseong, Gyeonggi-do. Provided by BMW Korea.

This content was produced with the assistance of AI translation services.