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’ m a physicist by training ,” begins Dr Michael Nikolaides , Senior Vice- President , Production Network , Supply Chain Management and Logistics at BMW Group . “ I studied in Munich , did my thesis in Boston at Harvard University and my PhD in semiconductor and biophysics back here in Munich . I started at BMW more than 20 years ago in the engineering department where I investigated materials and nanotechnology . I then ended up in production more than 17 years ago and I ’ ve spent my career there since . I was responsible for the engineering and assembly of the V8 and V12 engines in our plant in Munich . Almost four years ago , I took over the responsibility for BMW ’ s global production network for engines and drive trains , and then , a couple of years ago , I stepped into my new role as Senior Vice President , Production Network , Supply Chain Management and Logistics .

“ We produced an all-time high of almost 2.6 million vehicles in 2023 in 30 plants with more than 2000 suppliers in 4000 locations . We bring more than 30 million parts each day into our plants to enable daily production of 10,000 cars globally . In the simplest of terms , I make sure that those parts are where they need to be and are of the necessary quality . We try to find an optimum in our operations between market demand and capacity to achieve the best financial result . The logistics function is central to having a successful business in the automotive industry . Our industry has experienced and continues to experience enhanced volatility , global crises , and demand fluctuations between combustion engines and electromobility . Equally , regulations change very quickly . The automotive industry has a very complex and global supply chain and production network , and effective

We produced an all-time high of almost 2.6 million vehicles in 2023

logistics processes are basically the way to manage that . If you ’ re able to do that , you gain flexibility and the capability to react to change quickly and subsequently increase resilience .

“ Supplier relationships are of paramount importance and managing our suppliers is the key responsibility of our purchasing department . The supply chain is

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interdependent and encompasses complex relationships . Our approach is to partner with suppliers and create robust relationships by being transparent . Real time information and data , as well as digitalization are key factors for success , and particularly so during times of crisis , such as when the industry experienced semiconductor shortages . Fortunately , we have a strong relationship with Nvidia , the semiconductor company .

“ As an example of the importance of leveraging digitalization , we deploy a virtual twin of all our plants and processes to conduct simulations long before the physical plant is implemented . We also employ autonomous logistics systems to handle our complex internal warehouse and production processes . We have a BMW Group spinoff company called idealworks which is revolutionizing intralogistics . As a deep tech company , idealworks has been enabling the logistics of the future by providing the most flexible and scalable robotics ecosystem ,” he elaborates .

This is all part of BMW Group ’ s iFACTORY , its revolutionary strategy for automotive production of the future . The iFACTORY is being implemented at all BMW Group plants worldwide and will permanently change the group ’ s automobile production , providing a compelling answer to the challenges of the automotive transformation towards e-mobility . In implementing the iFACTORY worldwide , BMW Group is not only redefining the future orientation of its plants , but also

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