Mercedes-Benz invests €90 million to rev up supply chain

31 July 2015

Luxury automaker Mercedes-Benz is to open a new global logistics centre as part of a multi-million pound investment in its supply chain and logistics operation.

The car manufacturer said the €90 million (£64 million) “consolidation centre” in Speyer in Germany would increase the efficiency and flexibility of its supply chain.

It said increasing product complexity resulting from a larger number of engine versions and personal customisation options, were putting an additional strain on logistics operations.

The centre, to be fully operational by next year, will be operated by specialised logistics service providers, who will consolidate supplier shipments for deliveries to three major Mercedes-Benz plants in China, the US and South Africa. The company said the investment was part of a strategic realignment process and its “Mercedes-Benz 2020” growth strategy, which will see the company expanding its global production and supplier network close to customers and markets.

The new strategic approach is a result of the growing demand for local suppliers in these regions, and the increasingly strategic employment of regional suppliers for global deliveries of production materials, the company said. It added its global supply chain management unit has been integrated into the central production organisation at Mercedes-Benz.

“We create the necessary conditions for on-time production at our plants,” said Alexander Koesling, head of supply chain management at Mercedes-Benz. “Our investment of several hundred million euros in our supply chain management organisation will optimise logistics throughout our global production networks. By reducing our logistics costs per vehicle we will improve our competitiveness, since logistics have a major impact on our overall cost position.”

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