Inbound and outbound logistics of BMW company

According to the on the web sources, BMW Group has about 13,000 suppliers positioned globally. BMW adds worth on to its inbound logistic major activity by the use of minimizing the costs of transportation and sourcing the raw components of the highest quality. Simply because most of manufacturing and assembly units are based in Germany and Europe and they tried to preserve very good relationship with trusted suppliers in order to decrease the fees of logistics. BMW Company purchases most of its raw materials from Germany (42.6%) and Eastern Europe (19.7%). This is since 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 charges of logistics and guarantee an undisputed supply.

Operations

BMW Group is divided into the following 4 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. Monetary Services. This segment bargains with providing credit financing and leasing for BMW Group brand cars and motorcycles to retail customers. Gross profit margin in economic solutions segment equaled to 13.three per cent in 2015.
4. Other Entities. In 2015, this segment generated EUR 211 million profit ahead of tax, which is EUR 57 million higher than the prior year.

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

BMW Group adds worth to its operations primary activity mainly by means of the use of robotics technologies to a considerable extent. For instance, “robots perform with a door sealant that keeps sound and water out of the auto. The purpose of this implantation is not to replace human workers, but to support them in their day-to-day tasks”. Additionally, as part of the most recent developments, BMW Group is testing a quantity of autonomous vehicles on its factory floors as element of an automation drive that is anticipated to help reduce charges by five% per car annually.

Outbound logistics

BMW Group worldwide 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 places. In total, about 63.1 per cent of new vehicles are transported out of manufacturing plants by rail. BMW Group exercises three patterns of car distribution from the assembly line to the final user.