BMW regional parts distribution centre in Singapore to Port of Tanjung Pelepas (PTP), Malaysia; being in Malaysia has allowed the carmaker to upscale its business with much succcess

23 March 2014| last updated at 11:36PM

BMW moves S’pore parts centre to Johor

JOHOR BARU: Carmaker BMW AG will relocate its regional parts distribution centre in Sembawang, Singapore to Port of Tanjung Pelepas (PTP) in Gelang Patah, Johor in August.

The centre keeps an inventory of parts for BMW sedans, sports activity vehicles and Mini series.

The BMW Parts Distribution Centre in PTP opened in 2004 and marks its 10th anniversary this year.

BMW Asia Technology Centre Sdn Bhd manager (parts distribution centre) Philipp Lindemann said being in Malaysia has allowed the carmaker to upscale its business with much
success.

He said BMW sees value in the move to PTP.

“If it wasn’t a good location, the company would not have considered moving from Sembawang to here,” he said during a media tour of the BMW centre in PTP organised by the
Malaysian Investment Development Authority.

Of the 40 BMW warehouses worldwide, the PTP centre caters to 22 major markets in the Asia Pacific and is ranked among the top five in BMW’s network of warehouses.

Generally, the carmaker keeps parts for 15 years after production of a model ceases.

However, Lindemann said it is not simply about keeping parts.

“The company will study the market and track how many unique models are on the road and keep an inventory of parts for these models. This helps to reduce unnecessary inventory.”

Lindemann also said PTP’s free zone status is a bonus to the company.

He said with the country’s excellent network of highways, it was possible to ship a consignment from PTP to Bangkok in two days. If the company were to operate from Germany, it
would have taken five to 10 days just to ship those parts to Southeast Asia.

The BMW Parts Distribution Centre employs  71 highly-skilled Malaysians. Being a model training warehouse for the Asia Pacific, the company has been collaborating with universities
on internships and career growth within the BMW network.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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