[Report] Toyota Motor Korea Siheung Parts Logistics Center Achieves Both TPS and Safety

Opening of Parts Logistics Center in Siheung the Size of Two Soccer Fields
On-Time Supply to 67 Service Centers with JIT and Automation
"Safety First... Center Expansion Expected Due to Rising Demand"

"We have separated the movement paths of people and equipment to prevent safety accidents in advance. We manage work schedules in 10-minute increments and are increasing work speed by using the electric transport device 'Gururu'." (Han Junghoon, Head of Parts and Accessories Division, Toyota Motor Korea)

Accessory and inventory replenishment sub-warehouse inside the Korea Toyota Siheung Parts Logistics Center. Photo by Noh Kyungjo

Toyota Motor Korea has implemented the Toyota Production System (TPS) at its new parts logistics center (CPD·Siheung Center) in Siheung, Gyeonggi Province. By incorporating the Just-in-Time (JIT) system and automation?both key elements of TPS?the company delivers parts on time to 67 service centers nationwide through efficient routes. JIT refers to a method of minimizing inventory by producing and selling only what is needed, when it is needed, and in the required quantity.

On April 17, after about an hour's drive from Jamsil, Seoul, we arrived at the Toyota Korea Siheung Center. Inside, the facility was somewhat cool and filled with blue steel frames holding parts. Serial numbers (a combination of numbers and letters) attached to each frame were clearly visible, ensuring smooth picking operations for locating and counting parts.

According to Toyota Korea, the Siheung Center has a total floor area of 14,876 square meters, which is about the size of two soccer fields and 2.5 times larger than the previous Ansan Center. The facility is divided into a main center for parts and a sub-center for accessory storage. The main center holds 26,760 parts, with a maximum capacity of 51,000. The center also operates a 'Tire Hotel Service' that stores customers' winter tires and provides tailored services according to the replacement schedule.

Toyota Korea emphasized that it has achieved TPS-based logistics efficiency at the Siheung Center, something that was not possible at the smaller Ansan Center. Han explained, "The center handles an average of 4,000 outbound shipments and two container loads of inbound shipments per day. We closely manage schedules to enable JIT supply, considering that parts shipped from Japan take about 25 days by sea and 5 days by air." He added, "By introducing a conveyor system, we have minimized workers' movement paths and are actively utilizing Gururu to safely transport heavy parts."

The conveyor system is operating normally in the mezzanine area of the Korea Toyota Siheung Parts Logistics Center. Photo by Kyungjo Noh

The conveyor system was operating in the mezzanine area, which handles 70% of all outbound shipments. This area mainly stores small parts such as bolts, screws, pins, and filters. Sensors attached to the conveyor adjust the spacing between parts during movement. Four to five Gururu devices, shaped like scooters, were parked along one wall of the receiving area. The device is named 'Gururu' because of the sound it makes when moving.

Han stated that the introduction of automated equipment has not only increased work speed and reduced worker fatigue, but also lowered the risk of accidents. "We have physically separated forklift operation areas from worker areas to eliminate potential collision risks," he said. "All forklifts are equipped with safety sensors and emergency stop devices to enable immediate response in dangerous situations." Three-stage dry sprinklers for safety were also installed at every frame corner, in compliance with stricter warehouse management regulations following the Coupang fire incident a few years ago. Including the sections extending to the ceiling, the system effectively covers four levels.

The relocation of Toyota Korea's center was driven by increased sales of new Lexus and Toyota vehicles. The previous Ansan Center could no longer meet demand. Han said, "Compared to 2011, the number of Lexus and Toyota vehicles in operation (UIO) last year increased by about 2.2 times, and as a result, maintenance and parts demand more than doubled. It became necessary to establish a logistics hub, not just expand space."

Siheung was chosen for its geographical advantage. The Siheung Center is five minutes from the Shihwa IC on the Second Capital Area Ring Expressway and is also close to the NamanSan IC on the Pyeongtaek-Siheung Expressway, enabling rapid parts supply to service centers in the Seoul metropolitan area and nationwide. Han said, "It is one of the import car logistics warehouses closest to Seoul and also offers good access to Incheon International Airport."

An employee at Korea Toyota Siheung Parts Logistics Center is loading heavy parts onto an electric transport device called Gururu and moving them. Photo by Noh Kyungjo

So how did Toyota Korea move parts from the former Ansan Center to Siheung without disrupting shipments? The company applied a 'running shutdown' method. Han explained, "During weekdays, parts continued to be shipped from the Ansan Center as usual, while on weekends, parts were moved to Siheung. We prioritized and moved parts with lower demand first, ensuring that high-demand parts were completely depleted at the existing center before moving." Using this approach, Toyota Korea completed the transfer of parts over two months in November and December last year, involving 170 round trips by 11-ton trucks and about 530 personnel.

Toyota Korea expects further expansion of the Siheung Center. Han said, "We included extra expansion space in the design, anticipating the possibility of further increases in parts demand. We will continue to maintain a near-100% immediate supply rate and on-time delivery rate for parts."