Volkswagen Group sets up regional parts distribution hub in Malaysia
KUALA LUMPUR: German automaker Volkswagen Group has set up its new regional parts distribution centre in Port of Tanjung Pelepas in Johor to provide a genuine parts supply chain to 21 markets in Asia Pacific.
Spanning 50,000 square metres, the distribution centre can store 65,000 genuine parts of the group’s brands of Volkswagen passenger cars, Audi, Škoda and Volkswagen commercial vehicles.
It is learnt that Volkswagen is the second global carmaker to house its regional parts distribution centre in Johor.
In May 2017, BMW Group Malaysia opened its new regional parts distribution centre at the Free Industrial Zone of the Senai International Airport in Johor Bahru.
The 775,000 square feet centre replaced the company’s previous facility located within the Free Trade Zone of the Port of Tanjung Pelepas.
Disclosing this today, International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali said Volkswagen followed the increasing trend of global companies such as automotive, life sciences and medical devices, electrical and electronics, machinery and equipment in establishing global and regional distribution hubs in Malaysia.
“These companies seek to tap on Malaysia’s strategic location as well as our efficient and reliable infrastructure such as ports, airports and financial institutions, allowing them to improve operational efficiency and optimise product and service quality and speed for their customers,” he said in a joint statement.
Azmin said robust connectivity was paramount in enabling their investment and human capital to flow more freely across borders.
Volkswagen Group sales head Dr Christian Dahlheim said Asia Pacific offered a lot of growth potential for the group, especially when it comes to e-mobility.
“Our electric product range already consists of very attractive models like the Volkswagen ID.3 and ID.4 as well as the Audi e-tron that is fast growing,” Dahlheim said in the statement.
Apart from the vehicles, he said a strong after sales performance was key for customer satisfaction as Malaysia offers a central and well-connected location which perfectly suits Volkswagen plans to expand its foothold in the region.
Located in the free trade zone with direct port connectivity, the new site offers improved distribution and process efficiency and the warehouse processing is enhanced by as much as 15 per cent.
The prime location is well linked to the air hubs and roads, enabling better hub-and-logistics flow and faster cargo turnaround.
The new facility is also customised to Volkswagen’s requirements, where storage systems like semi-automated paternoster and vertical narrow aisle are built for better warehouse space and process optimisation.
Value-added service is now offered to its customers such as repacking and relabeling at retail level for the ease of dealer distribution.
“Our new parts distribution centre in Malaysia undoubtedly strengthens Volkswagen Group’s global after sales supply chain – a key milestone in providing improved genuine parts delivery to our customers in Asia Pacific,” said Volkswagen Group after sales head Roman Havlásek.
He said the government, through Malaysian Investment Development Authority (Mida), supported the group’s relocation here.
“We were pleased by the ease of implementing our project here and the assistance given by the team at Mida.”
Volkswagen Group Asia Pacific after sales director Marco Beitien said despite the unprecedented Covid-19 situation, the government had swiftly implemented measures to enable business continuity within the safety of workers and community.
“This allows us to maintain stable parts supply in the region to support vehicles of the Volkswagen Group used in the essential industries like ambulances and security vehicles, even during the critical phase,” he said.
Source: NST