Mercedes-Benz reinforces its commitment to operational excellence within the Asia-Pacific region with the opening of its new Regional Logistics Center Malaysia (RLCM). Operated by Mercedes-Benz Parts Logistics Asia Pacific Sdn. Bhd., this cutting-edge facility, located in Senai Airport City, Free Zone, is set to enhance Mercedes-Benz’s after-sales services by streamlining logistics across 20 countries in the Asia Pacific region.
Jan Fischer, Chief Executive Officer, Mercedes-Benz Parts Logistics Asia Pacific Sdn. Bhd. remarked, “Our investment in Malaysia underscores our commitment to exceptional customer care throughout the Asia Pacific Region and highlights Malaysia’s strategic significance as a logistics hub. The new Regional Logistics Center Malaysia is one of Mercedes-Benz’s most important logistics projects in the past decade, reaffirming our dedication to Malaysia’s economic growth and sustainability. By leveraging Johor’s strategic location and strong infrastructure, this facility enhances operational efficiency while benefiting from Malaysia’s highly skilled workforce in logistics and supply chain management.”
Commenting on the launch, YAB Dato’ Onn Hafiz Ghazi, Chief Minister of Johor, said, “Mercedes-Benz’s Regional Logistics Center Malaysia in Johor marks a significant milestone in our state’s economic development. This facility not only strengthens Johor’s role as a key logistics hub in Southeast Asia but also fosters talent development and provides valuable career opportunities for our people.”
Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, CEO of MIDA, expressed his excitement at Mercedes-Benz’s decision to select Malaysia as a prime hub for expanding its supply chain activities to serve their regional network, “This decision truly reflects Malaysia’s appeal as a business destination, underpinned by robust market demand, a conducive business environment, and a skilled workforce. The inauguration of Mercedes-Benz’s new Regional Logistics Center in Malaysia marks a significant achievement that contributes to the country’s aim of becoming a Global Services Hub by 2025 as outlined in the Twelfth Malaysia Plan (12MP). This achievement not only attracts top-tier investments but also creates avenues for high-skilled employment among Malaysians. MIDA remains committed to supporting and facilitating such endeavors to further enhance Malaysia’s standing as a preferred investment location for global investors.”
Strategic Investment for long-term growth
With a paid-up capital of RM189 million, Mercedes-Benz plans to increase its value-chain investment up to RM1.5 billion by 2035. This ongoing commitment will drive the facility’s growth through phases, enabling the brand to support future business expansion and significantly boost logistics capacity.
State-of-the-art Facility and Environmental Stewardship
Spanning over 1 million square feet, the RLCM is equipped with state-of-the-art systems designed to enhance material handling, flexibility, and workflow efficiency. These advanced features fortify the facility’s operational capabilities, making it a model of logistics excellence in the region. The RLCM manages the distribution of a wide range of products, mainly spare parts, accessories, and workshop tools for both Mercedes-Benz Passenger Cars and Vans within the region.
To improve logistics efficiency, the RLCM implements several cutting-edge technologies, including an in-house warehouse management system, advanced forklifts, handheld scanners, and mobile workstations for greater flexibility. The Very Narrow Aisle (VNA) system has been adopted to maximise storage efficiency, optimising space utilisation within the facility.
Further automation potential is foreseen in future, including automated storage systems, drones and dimensional scanners, elevating its logistics capabilities even further. Autonomous forklifts and cleaning robots are already in use to ensure a safe and clean working environment.
Aligned with Mercedes-Benz’s global sustainability initiative, the facility aims to achieve carbon neutrality by 2039, integrating environmentally sustainable practices to meet this goal. These efforts include generating renewable energy through an on-site photovoltaic (PV) system and earning Green Building Index (GBI) certification, reflecting the company’s dedication to minimising environmental impact and reducing its carbon footprint across the Asia-Pacific region.
In adherence to Mercedes-Benz’s Corporate Environmental and Energy Management policy, the facility focuses on reducing its CO2 footprint by closely monitoring energy consumption with installed meters and implementing countermeasures when necessary. Environmental data, including waste and water metrics, are collected, and reported in compliance with Mercedes-Benz AG’s Environmental, Social and Governance Reporting Standards (ESRS).
Furthermore, the facility meets international standards such as ISO 9001 for Quality Management and ISO 14001 for Environmental Management, reinforcing Mercedes-Benz’s leadership in responsible and sustainable logistics practices.
Elevating the local talent pool and economic impact
In addition to supporting the global supply chain, the RLCM contributes to Malaysia’s economy by creating high-value jobs and upskilling the local workforce. The facility offers comprehensive training in logistics and supply chain management, enabling local talent to thrive in a rapidly evolving industry.
