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BMW cutting warehouse space to improve supply chain

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BMW cutting warehouse space to improve supply chain

Thursday, 29/5/2008 05:09
Service management is the tactic being used by BMW in an attempt to improve supply chain arrangements.

The automaker faced complications because of complex technologies used in the cars and a demand for systems to support the servicing of these parts.

In response, the firm wants to improve the links between suppliers and manufacturers and Bennie Vorster, vice president of IT solutions, told Computing that new software updates would be made.

He said that warehouse space was becoming restricted leaving businesses with problems in how to best supply customers with an efficient service and to deal with customers' requirements.

"Complexities related to the increasing demand for 'just in time' delivery processes must be met by efficient supply chain management systems," he explained.

Mr Vorster said that no spare parts were kept in the warehouse "in case" a customer should phone in an order.

Instead, BMW must ensure that the technology used in ordering new parts and communication between suppliers and manufacturers is "seamless".
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