Service parts logistics
XPO Logistics to manage service parts facility for MG Motor
MG Motor is benefitting from a new parts distribution centre (PDC) that XPO Logistics has opened in the UK under a new contract between the two companies.
The facility, located in Daventry in Northamptonshire, has 15,000 sq.m of storage space and will be equipped with XPO’s proprietary warehouse management system (WMS). XPO Logistics has been building stock and configuring the storage since August this year, and the contract officially went live on November 1.
XPO’s WMS technology will support storage management for incoming parts, stock accuracy, and picking efficiency. It is also integrated with the logistics provider’s in-house transport management system (TMS).
XPO said the PDC would help streamline MG’s current processes and consolidate its operations to create greater efficiency. That consolidation involves moving parts warehousing from the existing Longbridge site in the UK Midlands and thereby removing inter-site stock transfers. The move improves planning and service levels, as well as reducing distribution costs, according to XPO.
Service levels will also be improved by the lengthening of the parts order cut-off for dealers by three hours, still guaranteeing parts deliveries by 8am the next day. XPO said this further improves service levels for MG customers by cutting repair times, as well as reducing the cost of loan vehicles. It also allows dealers to manage stock levels more effectively.
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XPO will also be handling parts distribution to over 150 UK retailers through its automotive distribution network, which handles around 7,100 roll cages of aftermarket parts to 2,500 delivery locations per night, according to the company.
XPO will deliver MG service parts to 155 retailers from the Daventry site, reaching 340,000 MG owners.
"Current and future MG customers will enjoy an even higher standard of service and experience,” said Guy Pigounakis, MG Motor UK’s commercial director. “Our new Northamptonshire site marks an important step forward – it will help us deliver to our dealer partners faster, make ordering simpler, and give us the capacity to grow with our customers’ needs.”
MG recently reported sales of almost 14,600 vehicles in September this year, with year-to-date sales standing at nearly at 65,400. The carmaker said the 63% increase in September was propelled by MG’s popular Hybrid+ models, including the MG HS, MG ZS and MG3.
The carmaker is aligned with the UK government’s Electric Car Grant is currently offering customers buying the MG4 EV and the MGS5 EV a grant of £1,500 ($1,960).
