BMW opens regional distribution hub in Lancaster
by TINA FOSTER
Posted on January 27, 2014 at 4:12 PM
LANCASTER –- German luxury automaker BMW celebrated the grand opening of its newest regional distribution hub in Lancaster on Monday, a move officials hope will bring 100 new jobs to the southern edge of Dallas County.
“Texas is a very important market for us,” said Ludwig Willisch, CEO of BMW North America.
The nearly 300,000 square foot building is touted as state-of-the-art and will serve BMW dealers across the southwest.
“It’s all about customer orientation. We have invested roughly $18 million in the facility fixtures,” said Willisch.
For the city of Lancaster, the distribution facility is an economic coup, providing jobs and the prospect of future business growth.
“When you think about the kind of investment BMW’s made, they have created jobs, almost 100 jobs, you also look at the tax base they will be contributing to and that's important because subsequently those dollars will get reinvested back into the community for better infrastructure, roads” said Lancaster Mayor Marcus Knight.
The distribution center will supply BMW parts to dealerships in Texas and four other states. For BMW owners, it means one thing: quicker customer service.
“Meaning that you pull up with your car at a BMW dealership and parts will be there within 24 hours,” said Willisch.
This year, the German automaker marks 20 years of producing cars in the United States. This is Lancaster’s first hub.
A look inside BMW's new $50M DFW facility
BMW's $50 million regional parts distribution center in Lancaster officially opened Monday, and will serve the surrounding southern region of the United States. (Courtesy: Todd Stricker/Newscast Creative)
Staff Writer-Dallas Business Journal
After months of construction, BMW Group showed off its new $50 million regional distribution center in Lancaster, south of downtown Dallas, which has been operational for three weeks.
The new Dallas-Fort Worth distribution center replaces BMW's regional distribution center in Mississippi, giving New Jersey-based BMW of North America LLC the ability to respond to a growing region of the country, BMW Vice President Craig Westbrook told the Dallas Business Journal.
"We are able to kill two birds with one stone; we are able offer better service and serve a growing region," Westbrook told me. "We had also outgrown the Mississippi facility."
By building its new 282,000-square-foot regional distribution center at 2401 Danieldale Road at Prologis 20/35 Park, BMW of North America was able to increase its operational capability by about 20 percent, he told me. The Lancaster facility is expandable to 370,000 square feet.
The North Texas facility is one of BMW's six regional distribution centers throughout the United States, and is operated by third-party logistics provider, UTi Integrated Logistics Inc. The LEED-silver facility employs about 100 people, who distribute parts to BMW dealerships in Louisiana, Mississippi, Arkansas, Oklahoma and Texas.
BMW spent an additional $25 million to $30 million to outfit the facility with loading dock materials, logistics equipment and technology.
For Dallas, Fort Worth, Houston, San Antonio and Austin, the Texas facility gives those dealerships same-day service, which means happier customers, said Steve Late, president of BMW-Austin.
"This is huge for our customers," Late told me.
BMW dealers from throughout a number of states, including Louisiana and Oklahoma, traveled to Lancaster for a preview of the distribution hub, which carries 40,000 numbered individual parts in the warehouse. Check out our slideshow for a dealer-view of the new distribution facility.