Mercedes-Benz Korea expands logistics center

The W35b project raises parts fill rate to 99 percent, adopts automated inventory management system

Mercedes-Benz Korea, a local importer and distributor of German luxury cars, has expanded its logistics center in Anseong, Gyeonggi Province, 150 kilometers south of Seoul, the company said Wednesday. The changes required a 35 billion won investment.

The logistics center opened in 2014 and its space has doubled from 17,800 square meters to 30,500 square meters after the yearlong project. The expanded center can house about 50,000 kinds of spare parts, as compared with 28,000 before the expansion, raising the parts fill rate to 99 percent, the company said in a statement. Auto parts from the Anseong logistics center supply 89 service centers in South Korea.

Participants attend a ceremony marking the new logistics center for Mercedes-Benz Korea. (Mercedes-Benz Korea)

The center also adopted advanced technology and operating systems to reduce working time and enhance work efficiency, the company said. It has introduced an automated forklift truck that uses sensors to detect the location of a particular part. Its inventory management system also underwent changes, reducing the time needed to acquire parts by maintaining an optimal inventory in Korea.

“With this site, we will improve parts availability and enhance work efficiency through the most advanced Inventory Management System,” stated Klaus Ziemsky, director of global parts logistics operations with Daimler AG, who visited Korea to attend the opening ceremony. “Thus, we are confident that our logistics investments will continue to strengthen our foundation to grow our business in Korea.” 

An automated forklift truck moves parts to an 11.5-meter-high storage shelf in a very narrow aisle. (Mercedes-Benz Korea)

The center employs a staff of 100, contributing to Anseong’s regional economy, it added.

“Mercedes-Benz Korea prioritizes customer satisfaction and plans to further strive for better service quality through continuous investment in Korea,” said Dimitris Psillakis, president and CEO of Mercedes-Benz Korea. “We are also happy to contribute to Anseong’s local community with industrial development and job creation.”

By Cho Chung-un (christory@heraldcorp.com)