As supply chain pressures start to abate, Mexico’s favourable cost and trade structure includes tariff-free agreements across major markets in North America and Europe, and high-potential markets in South America. That means its model portfolio is set to grow and the carmaker is looking to control the complexity of production and maintain cost and efficiency for international parts and vehicle shipments with the latest digital tools.
BMW is applying the lean, green and digital principles underpinning its iFactory strategy to make logistics more predictable at its plant in San Luis Potosi in Mexico.
The plant is currently setting up a digital control room to give it greater visibility over the arrival of components.
That information is enabling BMW to make predictions with an accuracy of 99% from when a container of parts is loaded in Europe whether that container is going to be on time or whether it will incur more costs.
This is very useful for BMW given the product complexity at San Luis Potosi with different cars for almost 70 markets and a high variety of options. It is also useful for the product lifecycle because it gives BMW all the data necessary for any quality actions, such as recalls.
BMW has also recently opened a new $100m logistics centre next to its US assembly plant in Spartanburg, which is based on iFactory principles.