Kumho Opens Australian Distribution Centre

As part of what it calls a “growing commitment to the Australian market”, Kumho Tyre Australia has opened a new AU$10 million (£5.9 million) purpose built distribution centre in Western Sydney. The company states the 5,000 square metre warehouse operation, which can hold up to 100,000 tyres, will greatly enhance the company's efficiency and ability to service the growing number of Kumho retailers.

The facility was officially opened by the leader of the NSW state government opposition, Barry O’Farrell, along with Jin Soo Kim, Consul General for the Republic of Korea. The new  distribution centre is already receiving 20 container loads of tyres per week and is dispatching more than five truck loads of tyres per day to tyre retailers around the state. This represents a 190 per cent increase in container movements compared with Kumho’s previous warehouse in, reflecting the greater efficiencies afforded by the new distribution centre.

According to Kumho Tyre Australia managing director Edmund Cho, the new facility is evidence of the company’s commitment to the Australian market and is a vital part of its plans to grow market share and overall presence in Australia. “Australia is a very important market for Kumho and our growth over the past few years has meant that we had to invest in a new distribution centre to ensure our customers are properly serviced and that they receive their orders correctly and on time,” said Cho.

The distribution centre holds truck, bus, 4WD, car and motor sport tyres in a range of specially designed racking systems and is controlled a SAP computer system. Orders are processed electronically and picked with the system able to allocate the oldest stock first to keep the warehouse inventory at optimal levels. The facility will employ 20 people in the warehouse and administration and operates 12 hours a day five days a week. It also features a training centre capable of taking up to 30 staff or dealers.