TNT Logistics Launches DC for BMW in Northern California

250,000-square-foot distribution center in Stockton to service aftermarket

250,000-square-foot distribution center in Stockton to service aftermarket

Stockton, CA — November 18, 2005 — TNT Logistics North America has opened a 250,000-square-foot distribution center for BMW of North America in Stockton, Calif., to service the German automaker's aftermarket for parts in the U.S. market.

The new DC will employ than 55 people to receive after-sales replacement parts and accessories from more than 100 domestic and international suppliers and ship them to more than 40 dealers in Northern California, the Pacific Northwest and Northern Rocky Mountains.

Each of BMW's five distribution centers handles parts for all lines of BMW vehicles sold in the U.S. market, as well as new car accessories and "lifestyle" merchandise, which includes hats, t-shirts, sporting equipment, clothing, luggage, bicycles and collectibles.

Reducing the Distance to the Customer

In Stockton, TNT is providing the labor, management and material handling equipment. The facility, which was built to BMW specifications, was designed to mirror other BMW DCs across North America and the rest of the world.

The opening of this distribution center represents an expansion in the BMW service network. According to Alan Harris, vice president for after sales at BMW of North America, the new DC will allow the company to improve the service it provides to dealers in the surrounding states. "Each time we add a distribution center, we reduce the average distance between ourselves and our customers, which in turn reduces both our freight costs and carrier-related damages on outbound shipments," said Harris.

The new distribution center will also provide back-up service to other distribution centers in the BMW service network. "If a customer orders a part from his dealer in New Jersey and the closest distribution center doesn't have that part in stock, we will ship from any of the other four distribution centers, including Stockton, to ensure the customer receives what they need, when they need it," added Harris.

TNT has an 11-year history of working with BMW in the United States. BMW Manufacturing Company began producing motor vehicles in North America in 1994, when it opened its manufacturing plant in Spartanburg County, S.C. Since the plant opened, TNT has provided line-side delivery to BMW's production line and sequencing of parts and components. TNT also provides inbound supply chain management for that plant, which includes inbound material control, and transportation from suppliers to the plant.

Mirroring Processes

"One of the strengths that TNT brought to the table was its strong track record for operating excellence," said Harris. "They used their Zero Defects Start-Up (ZDS) to take a deep-dive approach in analyzing how we run our other distribution centers so that similar processes could be introduced at this facility. This enables BMW to have a unified approach to customer service around the country".

BMW of North America, LLC was established in 1975 as the United States importer of BMW luxury/performance automobiles. BMW NA assumed import and distribution responsibilities for BMW motorcycles in 1980. BMW NA's corporate headquarters are located in Woodcliff Lake, N.J.

TNT Logistics North America is a business unit of TNT Logistics, which employs 40,000 people operating in 40 countries. In 2004, TNT Logistics reported sales of $5.38 billion.

Additional Articles of Interest

— For an in-depth review of a conceptual technology model for a supply chain visibility hub, read "The Case for Supply Chain Visibility" on

— Look before you leap: For tips to follow before you set up shop in China, especially with regard to the supply chain, read the exclusive "Entering China: No One Said It Was Easy."

— It has been said that the ability to learn faster than your competitors is the only truly sustainable competitive advantage. And that's just what those companies that learn to apply tax planning best practices to their supply chain structure are finding out. Read more in "The Tax Efficient Supply Chain," only on