MOBIS is a company that supplies parts for Hyundai and Kia cars in 146 countries around the globe. This time around, the auto parts maker has quickly established a state-of-the-art distribution center in Egypt to service the regions in North Africa and the Middle East. This is the first time a Korean company has opened a distribution center in Egypt.
Korea’s biggest specialist in auto parts, MOBIS has opened the Egypt Distribution Center (MPME-EG) in an event hosting 100 people on the 26th. Vice-president Choi Ho-sung from the Parts Sales Division, Ambassador to Egypt Yoon Jong-kon and Governor of Alexandria Adel Ali Labib were among those present.
MOBIS opened the distribution center in the Free Trade Zone in the city of Alexandria to respond to the increasing demand for servicing parts in the area. There are currently 800,000 cars from Hyundai/Kia in operation in the region that encompasses North Africa and countries in the Middle East. Moreover, this number is expected to increase to over 1 million by 2012.
The MPME-EG is a large scale logistics center, which site spans to about 40,000 m2 &#8211; the building alone takes up a huge area of 30,000m2. It will supply around 70,000 different parts for 20 dealers in eight countries like Morocco, Algeria, Syria and Lebanon.
MOBIS expects this year’s sales for MPME-EG to reach $70 million and projects it to reach approximately $200 million by 2016.
With the latest addition, MOBIS currently has 22 distribution centers around the world (i.e. Europe, China and North America), finally completing the piece for a global auto parts distribution network.
The Alexandria facility is crucial because so far the Dubai distribution center has been supplying parts in North Africa and the Middle East, with an average of 27 days for any shipment to arrive. The new center can easily reduce that time to less than 10 days and thus supplying automotive parts across the entire region will become faster and more stable.
Choi mentioned that ‘the number of units in operation for Hyundai and Kia cars is increasing exponentially around the world and MOBIS will supply parts faster in areas where more parts are needed through precise demand predictions and inventory control .”
Alexandria lives up to its reputation as Egypt’s No. 2 city: the distance to the port is short, roads and other logistics and infrastructure are well-organized and there are no taxes paid because it is a Free Trade Zone.
For systematic and scientific storaging and shipping, the latest ‘demand prediction and shipping system’ was introduced; meanwhile, the latest IT technology allow employees to work from their personal PDAs. The Distributor Communication System (DCS), an online information exchange site, shows the course in which the order is processed and is the best suited place for customer satisfaction.
While supplying 1.81 million kinds of parts for the 166 Hyundai and Kia cars in operation around the world, MOBIS seeks to maximize customer satisfaction with a more systematic and efficient parts distribution center. Thus, it is currently working on improving its logistics system.
This latest add-on will rearrange the parts distribution regions for MOBIS into the Americas, Asia Pacific, Europe and the Middle East/Africa. The distribution pattern will be modified into a system of a main distribution center as a hub and sub distribution centers that service smaller districts. MOBIS plans to build three other