Sunday, October 24, 2021

Mercedes-Benz to Have New Regional Parts Distribution Centre in Johor - Estimated to Begin Operations in 2024

Mercedes-Benz recently announced that they have finalized the plans for a regional After-Sales Logistics Centre in Malaysia. The new centre will be located at Senai Airport City - Johor Bahru where Mercedes-Benz has signed a long-term lease agreement for the location. Operations are planned for the beginning of 2024 withTiong Nam Logistics Solutions Sdn Bhd.named as the lead developer of the project. This is definitely good news in terms of investments into Malaysia especially in terms of putting more jobs on the table for Malaysians coming out of pandemic lockdowns.

The new distribution Center will become a part of the global Daimler AG After-Sales Supply Chain Network and will serve as a distribution site for spare parts in the Asia Pacific region and other countries. It will take care of the importation, the storage as well as the regional management of spare part and accessories distribution. The warehouse size of the planned location will be approximately 1,000,000 square feet. The building management system of the new warehouse will be equipped with the latest storage and material-handling systems.

The new established company “Mercedes Benz Parts Logistics Asia Pacific (Malaysia) Sdn. Bhd”, a 100% subsidiary of Mercedes-Benz AG, will operate the After-Sales Logistics Center in Malaysia.

“With our planned After-Sales Logistics Center, Mercedes-Benz is committed and will invest to strengthen our foothold in Malaysia. We have found excellent conditions and great support in cooperation with MIDA and the related ministries. Located strategically in Johor Bahru, this new After-Sales Logistics Center will enable us to reaffirm our position as a global and regional distribution hub whilst creating new jobs for the region. Both our customers and our dealer networks will enjoy a good service and high-quality standards through this new infrastructure,” said Thomas Schulz, Vice President Global Service & Parts Operations.

What this states is more commitment from Mercedes-Benz in terms of investing in the company they are having a business in. It shows long term commitment and it also brings more jobs to people especially in the state of Johor. From what we believe, Johor is quite strategic in terms of the chosen location. With Singapore as a neighbour and the closeness of the Senai airport as well as Johor port facilites, transport logistics are easily handled making the distribution of parts throughout the South East Asian region be at an optimum. 

Of course, I am personally pleased that the company is investing millions of Ringgit into the Malaysian economy. It is sorely needed as the country needs to play catch up to the regional players in the automotive industry. Aside from the fact that this brings in more jobs of course.


No comments: