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BMG invests R400m in Joburg distribution centre

Technical solutions provider BMG, part of Invicta Holdings, has officially launched its BMG World site, in Johannesburg, which is the culmination of a consolidation and supply chain re-engineering strategy that began nearly ten years ago.

“The company’s R400-million investment to upgrade its existing Droste Park facilities into a leading-edge distribution centre centralises functional and support operations onto one site. Through this rationalisation initiative, BMG strives to achieve cost optimisation and improve regionalised branch office systems, thereby enhancing customer servicecapability,” BMG MD Gavin Pelser noted at the launch earlier this month.

New facilities comprise more than 308 000 m3 of warehousing and more than 300 000 product lines which can range from O-ring seals weighing 2 g to gearboxes weighing up to 50 t.

The bulk of the significant investment made into the facility over the past four years was applied to enhancements in the product warehouse and distribution centre, where BMG incorporated automated warehouse management systems, as well as JDA merchandise performance analysis software solutions.

The company has also invested in the latest materials handling equipment, including high bay reach trucks to optimise volumetric efficiency. Special machinery at the new facility includes eight dock levellers that will handle about 120 40 ft containers a month.

Key specialist machinery at BMG World includes a 200 kW regenerative load test rig, which has been developed in response to demand from local industry for absolute reliability from new gearboxes. This system uses technologywith the lowest energy consumption to transmit and apply loads of up to 30 000 Nm.

The facilities also include an advanced manufacturing centre and general engineering workshop, specialist assembly and repair workshops for drives, conveyors, hydraulics and pneumatics, as well as electric motors, electronics, gaskets, lubrication systems and filtration systems.

This enables BMG to continue to provide high levels of operating efficiencies and service delivery, in line with the continued growth of the business, according to Pelser.

The upgraded facility also hosts the BMG Academy of Excellence’s practical and theoretical training, which applies Manufacturing, Engineering and Related Services Sector Education and Training  Authority-accredited skills development and training for company employees and customers.

“We have moved from being a supplier of products to . . a supplier of solutions, where we have incorporated our gearbox manufacturing facility as well as our fluid technology, hydraulics and pneumatics facilities into this facility. Hence, BMG World offers you every single component you need,” Pelser said.

The company’s range encompasses bearings, seals, powertransmission components, drives, motors and materials handling components. BMG’s product portfolio also includes hydraulics and pneumatics, fasteners and tools, as well as valves, filtration and lubrication systems.

While customers now have greater accessibility to BMG’s products through more than 148 BMG branches and a wide distribution network in South Africa and in Swaziland, Zambia, Botswana, Mozambique, Namibia and Tanzania, Pelser pointed out that further expansions are planned.

He explained that BMG aimed to have more than 30% of its R4-billion turnover coming from business in Africa.

“BMG will further open a branch in Ghana, in November, and will also continue its growth strategy into East, West and Central Africa.”

Despite a tough economic and business environment, Pelser highlighted “a positive trend” in world markets, citing growth in the European, US and Asian economies as key indicators.

In South Africa, however, Pelser called for political issues, bribery and corruption to be addressed.

“Addressing these issues will springboard us into the growth pattern we see worldwide . . There is massive potential for Africa to grow at a similar rate to Europe’s and the US’s,” Pelser said.

BMG marked the official opening of the upgraded BMG World distribution and engineering facility by hosting a two-day event, which included site tours, product exhibits and working demonstrations to illustrate how BMG integrates its vast product range and extensive technical services into tangible operational efficiencies.

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