Already working together in China and South Korea, Porsche and DB Schenker extend their long-running relationship to Canada, where they opened the automaker’s first parts distribution centre in Mississauga, Ontario this year.
What happens when you take a global manufacturer known for its high-performance cars and combine it with a global logistics provider that gets shipments from Point A to Point B as fast and frictionless as possible? The answer: a long-term partnership between Porsche and DB Schenker that this year is expanding into new terrain.
Already working together in China and South Korea, the automaker and the logistics provider are extending their alliance into Canada, where in October 2019, they opened a brand new, 176,000-square-foot parts distribution centre (PDC) in Mississauga, Ontario.
For Porsche, DB Schenker will manage the parts storage and inventory management; picking and packing; and dispatch to the final destination (in Canada). The new facility is expected to ship about 282,000 orders during its first year in operation.
The global logistics provider will work with the manufacturer of high-performance automobiles to run a streamlined logistics process that caters to Porsche’s highly-discerning customers. Previously, Canadian Porsche Centres received their spare parts and lifestyle accessories from three PDCs in the U.S.
The 3PL of Choice
George Fremis, Manager, Parts Operations & Logistics, Porsche Cars Canada, Ltd., says the automaker selected DB Schenker for its broad logistics service portfolio, its track record in the automotive market, and its high service levels. “DB Schenker was not only the most cost-effective bid to come out of our RFP process,” says Fremis, “but it was also the most highly-qualified third-party logistics (3PL) company to run our PDC.”
A Great Match
According to Fremis, Porsche sources its car parts directly from the company’s main warehouse in Germany. The new facility will be Porsche’s first PDC in Canada, and roughly 140,000 square feet of it will be run entirely by DB Schenker staff. The remaining space will be used as a national training centre, vehicle storage, and potentially a “Porsche Forum” to showcase the brand, its innovations, and host customers.
“DB Schenker is familiar with our brand and what it represents in the marketplace in terms of products and services,” says Fremis. Because the window of driving opportunity is limited in Canada, where the winters can be harsh, keeping cars operational and on the road is more important than ever for Porsche Centres.
“If your vehicle is in for a service or repair,” Fremis says, “you want to make sure your Porsche is on the road as quickly as possible.” When selecting a 3PL to work with, Porsche factored in cost and capabilities, but also looked closely at how well its logistics partner could emulate its own high levels of customer service and professionalism.
“Porsche Cars Canada has a very good comfort level with DB Schenker, which knows what we need from a service point of view,” says Fremis. To enforce that understanding even further, the global logistics provider brought in the project manager who had successfully orchestrated a similar setup for Porsche in South Korea.
By supporting a seamless, fast supply chain for Porsche Canada’s automotive parts and related accessories, the global logistics provider is helping to ensure that the carmaker’s global brand continues to meet and exceed its customers’ expectations.
About Porsche Cars Canada, Ltd.
Established in 2008, Porsche Cars Canada, Ltd. (PCL) is the exclusive importer and distributor of the Porsche 911, 718 Boxster and 718 Cayman; Panamera; as well as Cayenne and Macan. Headquartered in Toronto, Ontario, since 2017, PCL employs a team of more than 50 in sales, aftersales, finance, marketing, retail development, and public relations. They, in turn, work to provide Porsche customers with a best-in-class experience in keeping with the brand’s 70-year history of leadership in the advancement of vehicle performance, safety, and efficiency. In 2019, a Parts Distribution Centre will open its doors and service the countrywide network of 19 Porsche Centres. PCL is the dedicated subsidiary of Porsche AG, headquartered in Stuttgart, Germany. In 2018, Porsche sold an unprecedented 8,904 units in Canada, up 7.9% over the prior year.
At the core of this success is Porsche’s proud racing heritage that boasts some 30,000-plus motorsport wins to date.
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