Mercedes Overhauls Global Logistics

Daimler AG's Mercedes-Benz Cars unit is launching a major realignment of its global logistics system, which employs nearly 7,500 people.

The process will take several years and represents an investment in euros of "a high three-digits million amount," according to the company. It says the restructuring will result in lower inventories, better on-time parts deliveries, improved materials sourcing on a global scale and integration of logistics at an earlier stage in the unit's worldwide production network.

A major first step in the plan is a new €90 million consolidation center in Speyer, Germany. When the facility reaches full operation in 2016, it will ship several hundred sea containers per week to assembly plants in China, the U.S. and South Africa.

Daimler says Speyer's more direct links to shipping ports will reduce costs and cut transport-related carbon dioxide emissions 25%.