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Inbound and outbound logistics of BMW company

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Inbound logistics

According to the online sources, BMW Group has around 13,000 suppliers located globally. BMW adds value on to its inbound logistic primary activity by the use of minimizing the costs of transportation and sourcing the raw materials of the highest quality. Because most of manufacturing and assembly units are based in Germany and Europe and they tried to keep good relationship with trusted suppliers in order to reduce the costs of logistics. BMW Company purchases most of its raw materials from Germany (42.6%) and Eastern Europe (19.7%). This is because the majority of manufacturing and assembly units are based in Germany and Europe and the company purchases from trusted suppliers in close proximity in order to reduce the costs of logistics and ensure an undisputed supply.

Operations

BMW Group is divided into the following four business segments:

  1. Automotive. In 2015, this segment generated the gross profit margin of 17.7 per cent.
  2. Motorcycles. Gross profit margin in motorcycles segment in 2015 amounted to 22.5 per cent.
  3. Financial Services. This segment deals with providing credit financing and leasing for BMW Group brand cars and motorcycles to retail customers. Gross profit margin in financial services segment equaled to 13.3 per cent in 2015.
  4. Other Entities. In 2015, this segment generated EUR 211 million profit before tax, which is EUR 57 million higher than the previous year.

BMW runs a complex manufacturing network in 30 sites in 14 countries. The company opened its latest engine plant in Shenyang, China in January 2016. In terms of sales BMW Group is represented in more than 150 countries worldwide.

BMW Group adds value to its operations primary activity mainly via the use of robotics technologies to a considerable extent. For example, “robots work with a door sealant that keeps sound and water out of the car. The goal of this implantation is not to replace human workers, but to help them in their daily tasks”. Moreover, as part of the most recent developments, BMW Group is testing a number of autonomous vehicles on its factory floors as part of an automation drive that is expected to help cut costs by 5% per vehicle annually.

Outbound logistics

BMW Group global distribution network comprises about 3,310 BMW, 1,550 MINI and 140 Rolls-Royce dealerships. In China alone, around 60 BMW dealerships were opened in 2015. The dealership and agency network for BMW i-comprises about 950 locations. In total, about 63.1 per cent of new vehicles are transported out of manufacturing plants by rail. BMW Group exercises three patterns of vehicle distribution from the assembly line to the final user.

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GradesFixer. (2019, January, 03) Inbound and outbound logistics of BMW company. Retrived June 6, 2020, from https://gradesfixer.com/free-essay-examples/inbound-and-outbound-logistics-of-bmw-company/
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