BMW Manufacturing Co. South Carolina International Trade Conference Sep. 2017

South Carolina International Trade Conference TS-18 Webpage

South Carolina International Trade Conference Challenges:   The Aftersales Supply Chain Management Department at the Spartanburg Plant is responsible for approximately 700 suppliers and 25,000 part numbers Service parts for every model produced at Plant Spartanburg since 1994, i.e. Z3, Z4, X3, X5, X6, must be available for 15 to 40 years after end of Series Production Challenges include priority of service parts at the suppliers, i.e. Series and SKD Production are always the highest priority Maintaining high parts’ availability with low inventory and low transportation costs Long term maintenance of tooling Availability of old technologies, ex: electronic technology from the 1990s, outdated materials South Carolina International Trade Conference

South Carolina International Trade Conference So how do we do this? • Deep understanding of the supply chain for each supplier • Improvement activities, supplier development to optimize supply chains, management at the suppliers for Service parts • Analysis of demand patterns for each commodity • Customizing inventory strategy at suppliers and BMW for challenging commodities • Ongoing tooling evaluations supporting a proactive approach to ensure tooling continues in good condition to support lifetime volumes • Establishment of a Distribution Hub in Spartanburg as of April 2017 where eventually every service parts produced for BMW in North America will come through this Hub and then distributed either directly to regional North American Distribution Centers or Germany or Asia South Carolina International Trade Conference South Carolina International Trade Conference