Category Archives: Editorial

4 Insights Into BMW’s Supply Chain — How Do They Do It?

BMW has an innovative reputation for producing high-class luxury vehicles. Much of the German car manufacturing giant’s continued success stems from its ever-evolving and improving supply chain. 

In the years since BMW’s founding in 1916, its supply chain processes have gone from abject simplicity to what you’ll find today — an uber-efficient, complex and expertly optimized process continually providing quality vehicles to consumers worldwide. 

How Does BMW Keep Doing It?

Despite admissions of a short-lived blip in its supply chain, BMW has returned strong again. 

What drives the manufacturer’s quality standards year after year? Since the auto industry’s supply chain issues earlier in the decade, further refining BMW’s smooth and innovative supply chain processes has undoubtedly played a considerable role in its success. 

It’s time to explore BMW’s supply chain in more detail.  

1. Planning the Supply Chain

With BMW’s expert planning and forecasting techniques, production delays are practically nonexistent. Its just-in-time (JIT) production benchmark ensures precise material delivery and finely honed inventory management that improves flexibility while maintaining storage budgets. 

BMW’s ability to foster long and successful partnerships with its suppliers is crucial to planning a seamless supply chain process, which involves forecasting material quality and costs and pinpointing delivery schedules.

2. Considering Key Supply Chain Elements

BMW considers these key components when planning the supply chain, connecting them in a way that guarantees customers receive products of the highest quality and craftsmanship.

Material Sourcing and Supply

Through a preplanned global supplier network, BMW’s experts source only the very best raw materials and components for the production of their vehicles. Each BMW supplier conforms to the company’s reliability, quality and sustainability standards.

Vehicle Manufacturing and Production

With strategically positioned manufacturing facilities worldwide, BMW assigns different models or components to plants specializing in their specific production. This approach substantially reduces waste and promotes manufacturing efficiency.

Company Logistics and Customer Distribution

BMW is logistically sound. A comprehensive network facilitates the prompt transportation and delivery of vehicle parts and finished products from one plant to another — and between distribution hubs and car dealerships. 

3. Using Innovative Supply Chain Technology

BMW’s supply chain operates well due to the technologies it incorporates. The company factors in new, innovative technologies as they appear, meaning that BMW’s decisions are always data-driven and cutting-edge. With digitized methods to simplify supplier collaboration, the supply chain has minimal delays and disruptions.

Among other technologies, BMW incorporates the Internet of Things (IoT), artificial intelligence (AI) and blockchain in its supply chain processes. 

The Internet of Things

The German car manufacturer began incorporating IoT during the last decade to assist with global warehousing capabilities. Introducing this technology increased the rate of daily car repairs as BMW immediately improved its logistics to track the location of newly received vehicles. IoT sensors fitted in BMW repair centers more than doubled repair processing. Now, the company uses the technology in its supply chain warehousing process.

Artificial Intelligence 

According to projections, AI’s contribution to supply chain management and logistics will increase at an annual compound growth rate (CAGR) of 45.9% between 2023 and 2032. By this period’s end, it should reach $348.62 billion

BMW’s AI innovations, Car2X and AIQX, contribute to this growth with the technologies providing built-in feedback from vehicles in production. After independently finding and reporting assembly faults, these AI tools enable BMW to rectify and manufacture its cars faster.

Blockchain 

In 2019, BMW tested blockchain technology with specific suppliers to improve its supply chain purchasing transparency. The following year, it incorporated the technology to include many other suppliers, which allowed the company and its consumers to trace the ESG compliance of materials and parts.

4. Implementing Sustainability Initiatives

As concerns about environmental protection rose to prominence in the 1970s, BMW adapted its supply chain to include sustainability and eco-friendly initiatives — now firmly entrenched as core values in the company’s corporate philosophy. Its supply chain planning process includes renewable energy source exploration and the responsible, ethical sourcing and validation of raw materials and components. 

Beyond its manufacturing processes and facilities, BMW partakes in social responsibility initiatives and community projects as part of its dedicated focus on sustainability and inspiring positive change within the automotive industry. By incorporating sound sustainability initiatives into its supply chain, BMW is leading the way for other global vehicle manufacturers. 

Keeping Abreast of Change 

As a major player in global automotive manufacturing and production, BMW offers a shining example of supply chain efficiency. By keeping a firm finger on the pulse of the industry, implementing state-of-the-art technologies, and tirelessly advancing environmental initiatives, BMW’s innovative processes ensure the manufacturer will keep doing what it’s done since 1916 — providing a blueprint for lasting success in supply chain management.

If I Owned a BMW Dealership, Here Are 5 Operational Changes I’d Make — Part 2

As my dream of owning a BMW dealership expanded, I began creating a thought catalog of how I’d make buying and owning a quality vehicle even better. 

While the sky’s the limit, these five ideas could add quality and results, making driving one of the world’s best performance cars an even better experience.

1. Host Client Events

There’s a reason it’s called a BMW club — owners want to feel like they belong to something exclusive. After all, a new Bimmer is an investment, so you should give people their money’s worth. A dealership that regularly hosts client events will win loyalty and continue to build a lasting relationship where their clients recommend them to new buyers. 

Some event ideas include:

  • A race day for “fastest foot” drivers to let them enjoy the power of their vehicles on a raceway-style course. For safety, it could be a limited field with one or two people at a time, racing against the clock. This idea is also a fantastic way to expand the dealership’s family by showing prospective buyers how much fun it is to own a powerful BMW. 
  • A monthly free members-only luxury car wash using filtered water — because no proud auto owner wants hard water spots and those mineral circles marring their Bimmer’s glossy exterior. Use high-gloss shampoo to detail your clients’ vehicles for a new-car feel that will remind them why they bought from you in the first place, and they’ll buy again and recommend you on social media.   

2. Improve Cybersecurity 

Client information is a security priority, and cyberattacks are on the rise. June 2024’s cyberattack that targeted 15,000 U.S. auto dealerships is evidence of why I’d beef up my dream franchise’s security protocols. 

Installing next-generation firewalls and advanced ingress detection measures will keep me and my clients safe from thieves who are after everything — including vehicle remote codes and client addresses. 

3. Implement Access Control

When your beloved auto baby needs to stay overnight at the dealership, you want to know it’s secure and no strangers can walk in and drive out with your dreams. Physical access control methods like key card entries, perimeter fences and patrolled gates are must-haves in today’s world, where thieves and criminals are brazen enough to seize any opportunities. 

With 93% of businesses using physical access control as part of their broader security and risk management plans approving of it, how can your dealership go without it? Clients will feel reassured when they know you take vehicle security as seriously as they do.

Luxury vehicles and their parts will always be juicy targets for criminals, and it’s vital for your dealership’s success to secure them against theft with strict records, restricted access and thorough background checks on all employees. 

4. Advanced Tracking 

Law enforcement can find vehicles with tracking devices more quickly — and hopefully, before they hit a “chop shop” — so offering to install a tracking system in older vehicles that didn’t come standard with it is another winning idea. Additionally, you can use real-time tracking technology to assure clients their new cars and replacement parts are on the way. 

5. Continuous Staff Training

People shopping for a new vehicle usually have a mile-long list of questions. If they can’t get the knowledgeable answers they’re looking for, they’ll almost certainly leave as disgruntled would-be customers, costing you a sale. 

My Bimmer showroom will only have the best-trained, most courteous staff, who are up to date on the latest BMW technology and thoroughly understand the psychology of sales. While they should be familiar with the ins and outs of all BMW models, they must also know what makes their clients tick. 

Opening the Doors on a Dream Dealership 

I’m an avid BMW owner, and I know what makes me love this unique relationship. My ideal dealership will offer top-of-the-line security, expert staff, high-tech access control and fun events to foster family connections. It’s what owning a Bimmer is all about! 

Prepare Your Home for a BMW EV by Making These 4 Adjustments

The day you finally get to drive your new BMW electric vehicle (EV) home is one to look forward to. While you’ll have many enjoyable hours on the road, you must also prepare for its arrival. 

Owning a BMW EV means readying your house to ensure it’s always juiced up and ready to go. With that in mind, consider completing the following adjustments before parking your new ride in the garage.

1. Choose a Suitable EV Home Charger

Part of owning a BMW EV, whether an i4, iX or i7,  means equipping your home with an EV charger to suit your car’s requirements. Although there are three available EV charger levels, you’ll likely only consider level 1 or 2 alternatives for home charging needs. 

Level 3 chargers require complex infrastructure that converts three-phase AC power directly to DC. Because of the expense of installation and the inability of most residences to cope with the high voltages, you’ll see Level 3 DC fast charging stations positioned for use at public venues, but you seldom find these in private homes. You’ll want to consider a level 1 or 2 alternative to fit in your garage.

How to Choose Between a Level 1 and 2 EV Home Charger

Before choosing your EV charger, consider where you’ll locate it. Some chargers may not fit inside your garage, so an outdoor-rated unit might suit you. Your installation technician can advise you on mobile and more compact options, including charger systems with Wi-Fi capabilities.

All BMW EV purchases include a Flexible Fast Charger, which plugs into a 120-volt home socket (level 1) or a 240-volt outlet using a level 2 adapter included. This charger is portable, and you can use it without a charger wall box. Many owners prefer to keep them for emergencies and install fixed units in convenient positions on their properties instead.

The primary difference between level 1 and 2 chargers is the time needed to charge your BMW EV. Level 1 charging is the slowest and is suitable if you leave your car on charge overnight. You’ll get between two and five miles of travel for every hour’s charge using level 1. With level 2 charging, you could reach 20 miles of charge per hour but will likely need a professionally fitted wall charger, often called electric vehicle supply equipment (EVSE).

2. Buy Your Preferred EV Charger and Arrange for an Electrician

Before buying your chosen EVSE, look at the charger’s public ratings, ensure you recognize the brand and confirm it is UL- or ETL-certified. These certifications mean the charger meets quality and safety standards and won’t damage your vehicle if something goes wrong. Consider its overall size, cable length and whether you can automatically set charging times to benefit from off-peak electricity hours.

If you intend to install the charger outside, clarify its weatherproofing capabilities. A National Electrical Manufacturing (NEMA) rating of 3 means resistance to external elements like rain, snow, sleet and ice buildup, while an NEMA 4 rating means an even greater waterproofing level. Also, be aware that icy weather could make charging cables brittle.

When hiring an electrical professional, consider one with EV experience who knows the ins and outs of charger installation. The electrician could then offer advice if they foresee problems with your chosen installation area or other potential issues.

Government tax rebates are one advantage of buying an EV. If you live in a predefined IRS nonurban or low-income census area, you could also qualify for a 30% federal tax credit on the price of your EV home charger.

3. Prepare Your Chosen Area for Charger Installation

Once you’ve booked an electrician based on your desired EV charger’s arrival date and know how much space it will need, it’s time to prepare the space. Most BMW owners use their garages for convenience and security reasons, where they can lock up their vehicles to charge overnight. If so, clear a suitable area for the wall mounting and charging accessibility to allow for installation on delivery. 

4. Ensure Easy Access to Your Power Panel 

Most electrical distribution boards are positioned in accessible areas of the home, providing power to the entire residence. Before your EV charger and electrician arrive, it’s helpful to know whether your panel will need upgrading to incorporate the charger and prepare the professional to bring additional circuit breakers if necessary. Monitoring your power consumption beforehand helps avoid overloading the panel.

Adjust Your Life to Being a BMW EV Owner

Changing from a gas-powered vehicle to an electric model can be an adjustment. You must pivot from visiting gas stations to locating fast charging stations on your given routes.

Most importantly, you should create a home charging routine to ensure your BMW is always charged and ready to go when you are. That way, you can hit the road with confidence.