Mercedes-Benz opens new regional logistics center in Johor

Mercedes-Benz opens new regional logistics center in Johor

Nicholas King

November 09, 2024 at 03:14

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Mercedes-Benz

MERCEDES-Benz is reinforcing its commitment to the Asia-Pacific region with the opening of its new Regional Logistics Center Malaysia (RLCM). 

Operated by Mercedes-Benz Parts Logistics Asia Pacific Sdn. Bhd., the facility is located in Senai Airport City, Free Zone, Johor.

The purpose of the facility aims to enhance Mercedes-Benz’s after-sales services by streamlining logistics across 20 countries in the Asia Pacific region. 

Mercedes-Benz Parts Logistics Asia Pacific chief executive officer Jan Fischer explains that the facility, which leverages on Johor's strategic location and strong infrastructure, will enhance operational efficiency while benefiting from Malaysia's highly skilled workforce in logistics and supply chain management.

"Our investment in Malaysia underscores our commitment to exceptional customer care throughout the Asia Pacific Region and highlights Malaysia's strategic significance as a logistics hub. The new Regional Logistics Center Malaysia  (RLCM) is one of Mercedes-Benz’s most important logistics projects in the past decade, reaffirming our dedication to Malaysia’s economic growth and sustainability," Fischer added.

Johor chief minister Datuk Onn Hafiz Ghazi who was at the launch of the center said Mercedes-Benz’s RLCM in Johor marks a significant milestone in the state’s economic development. 

"This facility not only strengthens Johor's role as a key logistics hub in Southeast Asia but also fosters talent development and provides valuable career opportunities for our people,” said Onn.

Spanning over 1 million sq ft, the RLCM is equipped with state-of-the-art systems designed to enhance material handling, flexibility, and workflow efficiency. 

The center manages the distribution of a wide range of products, mainly spare parts, accessories, and workshop tools for both Mercedes-Benz Passenger Cars and Vans within the region. 
 
Several cutting-edge technologies are implemented to improve logistics efficiency, including an in-house warehouse management system, advanced forklifts, handheld scanners, and mobile workstations.

The Very Narrow Aisle (VNA) system has been adopted to maximise storage efficiency, optimising space utilisation within the facility. 


 
Anticipating further automation potential in the foreseen future, the center also includes automated storage systems, drones and dimensional scanners. Autonomous forklifts and cleaning robots are already in use.

The facility is also integrated with environmentally sustainable practices, aligned with Mercedes-Benz’s global sustainability initiative to achieve carbon neutrality by 2039.

These efforts include generating renewable energy through an on-site photovoltaic (PV) system and earning it a Green Building Index (GBI) certification.
 
In adherence to Mercedes-Benz's Corporate Environmental and Energy Management policy, the facility focuses on reducing its CO2 footprint by closely monitoring energy consumption with installed meters and implementing countermeasures when necessary. 

Environmental data, including waste and water metrics, are collected, and reported in compliance with Mercedes-Benz AG’s Environmental, Social and Governance Reporting Standards (ESRS). 

Furthermore, the facility meets international standards such as ISO 9001 for Quality Management and ISO 14001 for Environmental Management.

Malaysian Investment Development Authority (MIDA) CEO Datuk Sikh Shamsul Ibrahim expressed his excitement at Mercedes-Benz's decision to select Malaysia as a prime hub for expanding its supply chain activities to serve their regional network.

“This decision truly reflects Malaysia's appeal as a business destination, underpinned by robust market demand, a conducive business environment, and a skilled workforce. The inauguration of Mercedes-Benz's new Regional Logistics Center in Malaysia marks a significant achievement that contributes to the country's aim of becoming a Global Services Hub by 2025 as outlined in the Twelfth Malaysia Plan (12MP). 

"This achievement not only attracts top-tier investments but also creates avenues for high-skilled employment among Malaysians. MIDA remains committed to supporting and facilitating such endeavors to further enhance Malaysia’s standing as a preferred investment location for global investors,” he added.  

With a paid-up capital of RM189 million, Mercedes-Benz plans to increase its value-chain investment up to RM1.5 billion by 2035. This ongoing commitment will drive the facility's growth through phases, with the goal of enabling the brand to support future business expansion and significantly boost logistics capacity. 

In addition to supporting the global supply chain, the RLCM aims to contribute to Malaysia’s economy by creating high-value jobs and upskilling the local workforce. The facility offers comprehensive training in logistics and supply chain management, enabling local talent to thrive in a rapidly evolving industry. 

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