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Kia Motors South Africa recently opened its new Parts Distribution Centre (PDC) warehouse as part of its Annual Dealer Conference, held at Emperors Palace on the 2nd and 3rd of March 2012.
In 1998, Kia Motors South Africa operated out of a 40m2 warehouse in Kempton Park, from where the parts warehouse moved to Springs in 1999 (the new facility was significantly bigger at 500m2). In 2000 it moved to a new facility in Germiston, which had 800m2 of storage space and in 2002, Kia built a brand new Head Office, and erected a new PDC (Parts Distribution Centre) next to it.
The 2,620m2 facility swallowed up the existing stockholding and was initially only 25 percent full. Despite a steady improvement in sales and the resultant increase in the vehicle parc, Kia Motors South Africa managed to prolong the life of the facility. This was done through innovative packing, the formation of regional hubs and the addition of mezzanine storage.
An immense increase in vehicle sales experienced by Kia Motors South Africa in the last few years, coupled with considerable growth, had the natural effect of an increase in the demand for Kia parts and accessories. By 2011 the warehouse was running far over its official capacity, and there was a need for a new and bigger facility to cater for this and to allow for future growth.
The 2nd of March 2012 marked the opening of the new Parts Distribution Centre (PDC). This brand new facility, which has been fully operational since mid-January 2012, offers 4,203m2 and a generous maximum storage height of five metros. It is approximately 65 percent full, holding 239,575 pieces and 27,510 lines. It will continue to ensure high levels of parts availability and efficient distribution for years to come and has potential for further expansion when required.
“We are very excited about the opening of the new Parts Distribution Centre, as it will have a positive impact on the business as a whole”, comments Kia Motors South Africa’s Parts Director, Hans Stenger. “Because of increased storage capacity, a higher level of safety stock can be stored, which will result in better parts availability to all dealerships”, he concludes.

By Fred Albrecht, Managing Director, APC Storage Solutions SA
Because modern consumer demands place greater emphasis on lower prices and faster services, a greater reliance on successful supply chain designs, systems, processes and equipment is needed. It is essential to properly align a logistics and warehouse solution with a company’s promise to its customers.
Storage solutions companies provide a series of professional consultation services that elevate logistics and warehousing best practices to accommodate these industry demands.
For companies looking to improve profitability by either revamping or creating entire supply chains, or by simply building a new warehouse, a holistic logistics planning service is needed.
In the case of Greenfield projects, numerous factors need to be considered, with these companies needing to carefully plot the ideal warehouse location within the supplier and customer distribution network.
Suppliers and distributors that are well positioned in relation to a warehouse generate substantial savings in fuel and other transport-related costs. This service also helps to eliminate bottlenecking in distribution processes, and can optimise for future growth of the supply chain, turning warehouses into enhanced, high-capacity nerve centres.
Consultants need to analyse factors like road conditions, toll roads, peak in- and out-bound traffic times, and property prices, among many others, to determine suitable locations for such nerve centres.
In existing warehouses where overall performance is sub-optimal, solutions companies can assess layouts, operating procedures and management skills. Based on state-of-the-art warehouse mapping software and leading logistics expertise, these companies can make a series of recommendations, re-engineer operating procedures, and tailor-make training packages to address every shortcoming.
It is important to test and measure all components within a warehouse system: checking rust, mechanical damage, and metal fatigue, and correcting faulty racking installations.
For green and brownfield projects, these companies can design and test new racking system layouts to provide increased storage capacity, productivity and safety. Furthermore they provide unique material handling solutions that help achieve maximum warehouse efficiency.
Well-paired warehouse layouts and material handling equipment means that, from receiving ends to dispatch, items travel the quickest and most logical routes avoiding cross traffic and backups. The result is lower cost-per-picks, as time and energy required to move items is kept as low as possible.
Storage solution companies provide all project management and technical support during and after the construction, commissioning, and user acceptance testing (UAT) phases, all in preparation for a successful ramp up process.
Warehouse consultants further consider return-on-investments by creating models and designs that compare operational expenditures with capital investments. Balancing the two expenditures grants warehouse owners long-term productivity and profitability.

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Kia Opens New Parts Distribution Centre

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