Hyundai Mobis, responsible for supplying all of Hyundai & Kia’s service parts around the world, announced on July 20 that it completed the construction of its central logistics centre in Belgium, and commenced normal operations. Hyundai Mobis is planning to improve its logistics system by transforming this centre into becoming the logistics hub in Europe.
Hyundai Mobis purchased a 123,000㎡ lot in Beringen, Belgium, and subsequently built a 56,000㎡ logistics centre. The Belgian Central Logistics Centre will play not only the role of a general logistics centre that supplies service parts in the areas that it covers, but also the role of a logistics hub that ships service parts to the regional logistics centres in the UK, Germany, Spain, Italy, Sweden and Hungary.
Previously, the headquarters in Korea had been using airplanes as much as three times a week to directly ship necessary parts to respective centres in Europe, whereas the Belgian Central Logistics Centre now receives service parts on a daily basis, and delivers them to respective centres by land. In addition, Hyundai Mobis receives parts by freighters two to three times a week so that it can instantly meet customer needs without risk of running out of stock.
As a result, Hyundai Mobis expects that it would be able to not only reduce logistics and inventory costs, but also reduce overall lead time, i.e. the time it takes to deliver a certain part to a customer, by at least two days.
The Belgian Central Logistics Centre receives low-circulation parts from each centre, and stores them in a single location. Low-circulation parts are those that have little annual demand. If low-circulation parts are moved to a central location, regional logistics centres can fill the empty bins with high-circulation parts that have high demand. This allows them to meet customer needs more quickly.
Hyundai Mobis is striving to improve its logistics system in Europe in the form of preemptive investments in order to supply genuine parts to drivers as quickly as possible since the number of Hyundai & Kia cars being sold in Europe is rapidly on the rise.
In fact, as of the end of last year, 8.6 million Hyundai & Kia cars are being driven in Europe, more than twice their number in 2005, i.e. four million cars. The cumulative sales until June amounted to about 500,000 cars, up 13.5% year on year. It is expected that sales will increase over the long term.
Even now, Hyundai Mobis has a close-knit logistics network, including seven large logistics centres, 92 agencies and 5,742 dealers across Europe, but it has further plans to increase the satisfaction of Hyundai & Kia car owners in Europe by building additional logistics centres in areas where lead time has been increasing.