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  • Essay / BMW Company Inbound and Outbound Logistics

    According to online sources, the BMW Group has approximately 13,000 suppliers located around the world. BMW adds value to its core inbound logistics business by minimizing transportation costs and sourcing the highest quality raw materials. Because most of the manufacturing and assembly units are based in Germany and Europe and they have tried to maintain good relationships with trusted suppliers to reduce logistics costs. The BMW company purchases most of its raw materials from Germany (42.6%) and Eastern Europe (19.7%). Indeed, the majority of manufacturing and assembly units are based in Germany and Europe and the company sources from trusted suppliers in the immediate vicinity in order to reduce logistics costs and ensure undisputed supply. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay The BMW Group is divided into the following four business segments: Automotive. In 2015, this segment generated a gross profit margin of 17.7 percent. Motorcycles. The gross profit margin in the motorcycle segment in 2015 amounted to 22.5 percent. Financial services. This segment deals with the financing and leasing of BMW Group brand cars and motorcycles to retail customers. The financial services sector's gross profit margin was 13.3 percent in 2015. Other entities. In 2015, this segment generated a pre-tax profit of 211 million euros, 57 million euros more than the previous year. BMW operates a complex manufacturing network at 30 sites in 14 countries. The company opened its latest engine plant in Shenyang, China in January 2016. In terms of sales, the BMW Group is represented in more than 150 countries around the world. The BMW Group is adding value to its core business, primarily through the extensive use of robotic technologies. . For example, “the robots work with a door sealant that prevents noise and water from entering the car. The goal of this implementation is not to replace human workers, but to help them in their daily tasks.” Additionally, in the most recent developments, BMW Group is testing a number of autonomous vehicles at its factories as part of an automation drive that is expected to help reduce costs by 5% per vehicle per year. Keep in mind: This is just a sample. Get a personalized article from our expert editors now. Get a personalized essay The BMW Group's global distribution network includes approximately 3,310 BMW dealerships, 1,550 MINI and 140 Rolls-Royces. In China alone, around 60 BMW dealerships were opened in 2015. The BMW i dealership and agency network includes around 950 locations. In total, approximately 63.1 percent of new vehicles are transported out of manufacturing plants by rail. BMW Group operates three vehicle distribution models from the assembly line to the end user.