Motoring brand MG Motor has partnered with XPO Logistics in a long-term agreement to strengthen its warehousing and aftermarket parts distribution.
XPO Logistics is opening a dedicated warehouse facility in Daventry, in West Northamptonshire in the UK, with approximately 40 employees and an initial 15,000m² of storage space. The unit is said to have the flexibility to upsize for MG’s future growth projections.
The new warehouse will combine the previous parts warehousing of Longbridge, West Midlands, removing inter site stock transfers, improving planning and service levels, and reducing distribution costs.
Dan Myers, managing director, UK and Ireland, XPO Logistics, said, “We have always been successful in the automotive aftermarket arena, and partnering with an iconic British brand like MG, which is now firmly established as one of the UK’s best-selling manufacturers, is proof yet again that we are leading in this space. We’re excited to see what we can achieve over the next few years, and hopefully further into the future.”
XPO Logistics will use its Warehouse Management System technology to enhance put-away processes, stock accuracy and picking efficiency, helping to streamline MG’s operations and improve efficiency.
The partnership also includes parts distribution to over 150 UK retailers. This will be managed by XPO Logistics’ unique automotive distribution network, which handles around 7,100 roll cages of aftermarket parts to 2,500 delivery locations per night.
The parts order window has also been expanded, raising the previous order cut-off for dealers by up to three hours, with deliveries guaranteed before 8am the next day. This is expected to improve service levels for MG customers by cutting repair times as well as reducing the cost of loan vehicles.
MG Motor will also benefit from proprietary transportation software such as XPO Logistics’ CO2 Dashboard. This reduces their emissions across the board, providing MG Motor with greater visibility and reporting.
Guy Pigounakis, MG Motor UK commercial director, commented “XPO Logistics is a proven partner, with an excellent record when it comes to supporting major automotive operations. We’ve been impressed by their warehousing and delivery technology solutions.
“Current and future MG customers will enjoy an even higher standard of service and experience. 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. More than just a facility, it represents our commitment to efficiency, quality and care in everything we do.”
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