BMW opened a vehicle distribution center at Sparrows Point, Maryland in February 2022.
The VDC will process up to 100,000 vehicles imported to Baltimore from Europe annually. The center also serves as a distribution hub to provide such services as pre-delivery inspection, repair, accessory installation, vehicle programming and maintenance.
BMW is not alone in moving to Sparrows Point. The industrial location, called Tradepoint Atlantic, is a “3,300 acre logistics and industrial center” which has also attracted Niagara Bottling and United Safety Technology, Inc.
This post is based on the Automotive Logistics article, BMW opens US VDC at Sparrows Point with Tradepoint Atlantic, by Marcus Williams, February 15, 2022; the Baltimore Fishbowl article, Beverage manufacturer Niagara Bottling to open facility at Tradepoint Atlantic, by Marcus Dieterle, April 11, 2022; and the YouTube video in the Spotlight. Image source: Jon Bilous/Shutterstock.
1. In what ways is BMW’s new vehicle distribution center considered the outcome of a strategic capacity decision?
Guidance: BMW’s new vehicle distribution center is a capacity investment that better enables the company to achieve a match between its long-term vehicle supply capabilities and customer demand. The new vehicle distribution center has enough capacity for BMW to process up to 100,000 vehicles annually, imported from Europe, which are then distributed to their dealer network and ultimately into customers’ hands.
2. What are the factors that contribute to BMW’s decision to open its vehicle distribution center in Sparrows Point?
Guidance: BMW’s location decision factors include proximity to the port of Baltimore, growing demand for its vehicle in the region, proximity to road and rail links, easy assess to their dealer network, and availability of resources for pre-distribution services.