Shanghai Volkswagen logistics management methods?

Logistics outsourcing, i.e., production or sales and other enterprises in order to enhance the core competitiveness of its logistics business in the form of a contract entrusted to a professional third-party logistics company (3PL) operations, outsourcing is a long-term, strategic, interpenetrating, mutually beneficial business entrusted to the execution of business contracts and ways of mutual benefit. With the acceleration of the process of global economic integration, the application and development of information technology in the field of logistics, as well as the integration of multi-channel market demand for the growth and expansion of the service capacity of logistics service providers and improve the logistics outsourcing this strategic means of understanding, recognition and adoption of enterprises gradually.

Logistics outsourcing is to enhance the level of logistics management, logistics costs to save an effective means. On the one hand, logistics as a "third source of profit" is an important source of cost reduction and higher profits; on the other hand, the optimization and restructuring of logistics processes is crucial for enterprises to better utilize their limited resources and build core competitiveness. Through the use of new logistics strategies, such as making full use of the advantages of third-party logistics, the use of complementary means of information networks, and suppliers, distributors, customers and other upstream and downstream enterprises to build a supply chain network chain organization, optimize the entire supply chain management, for enterprises to build a new overall competitive advantage.

1 Logistics outsourcing background

1.1 Shanghai Volkswagen Automobile Co., Ltd. its own development needs

Before the end of 2001, Shanghai Volkswagen Automobile Co., Ltd. (SVW) produced only Santana B2, 2000, Passat and so on three categories, according to the plan of the Polo, Gaoer, Tou'an, and other new models will be put into production, the production volume will be in Production will also be increased gradually from 220,000 to 400,000 within two years. At the same time, the configuration of the original models will also be more abundant. In the face of the complexity of the types of vehicles and the challenge of more frequent technical changes, the original logistics technology and information management system because of its limitations have lagged behind the rapid development of business needs.

1.2 Focus on core business needs

Outsourcing logistics business to third-party logistics enterprises can realize the optimal allocation of enterprise resources, reduce the investment in vehicles, warehouses and manpower for logistics operations, and focus limited human and financial resources on core business to enhance the core competitiveness of enterprises. In addition, it can also focus on quality manpower and material resources to focus on the key functions of logistics, that is, in the production planning, preparation, logistics strategy planning and logistics processes and quality control to do a good job, do fine, to better meet the needs of fast-growing production and sales.

1.3 The need to reduce costs and improve efficiency

Compared with SVW's original operational logistics department, the third-party logistics enterprise service provider is more experienced and specialized in organizing the company's logistics activities. By focusing on the use of advanced equipment and human resources of the logistics service provider and adopting its professional technology and operational concepts, a more economical and efficient logistics solution can be obtained. In addition, SVW's own labor salary level is much higher than the average level of the market, the introduction of the third-party logistics service provider relying on its professional and market-oriented labor resources, for the enterprise to significantly save personnel costs.

1.4 Enhance the level of logistics management, the need to improve user satisfaction

The intervention of the third-party logistics company, the structure of the supplier, the service provider, SVW "trinity" service model, the new service relationship will be more conducive to the division of duties and responsibilities, and the improvement of user satisfaction will become an important indicator of the performance of third-party logistics services, but also an important indicator of logistics service performance. The new service relationship will be more conducive to the division of duties and responsibilities, and the improvement of user satisfaction will become an important indicator of the performance of third-party logistics services, but also the primary symbol of the improvement of logistics management.

1.5 The need to save investment

Whether the enterprise is in the expansion period or compression period, most of the enterprises for the investment of capital is always limited. By looking for a third-party logistics service provider, you can greatly save the company's capital investment in logistics resources, such as warehousing equipment and on-line equipment.

1.6 Risk sharing and the need to improve enterprise flexibility

Through outward resource allocation, the SVW and the suppliers have eliminated their respective inventories and transportation, which promotes the optimal combination of resources, increases supply chain flexibility, and is more adaptable to changes in the external environment.

Based on the above considerations, SVW formally set up a logistics outsourcing project team in early 2002, which was responsible for integrating parts and components human field logistics operations to a professional logistics service provider. After careful research and analysis, the main scope of logistics outsourcing was formally determined, i.e., all operational logistics, including parts and components transportation, warehousing and delivery on the line, will be fully integrated outsourcing. After a comprehensive analysis and comparison of logistics solutions and service prices, SVW finally selected the well-known 3PL as its integrated logistics service provider.

3PL is responsible for planning and controlling SVW's human-plant logistics network, reducing parts in-transit time and inventory levels through parts order control and transportation monitoring, optimizing route design to ensure on-time supply of production materials, adopting "time-window" management for stock collection and delivery, and cooperating with SVW and suppliers on an equal footing to improve the logistics supply chain. 3PL has been working with SVW to improve the logistics supply chain. **3PL, as a hub of information and management, integrates a series of logistics activities that occur during the process of parts order planning, supplier pickup, transportation, transit, pre-assembly, production line delivery, sequencing, and material box recycling in the automobile manufacturing plant to ensure that each member company can get the right quality, quantity, and specification of raw materials, parts, or finished products at the right time, without running out of stock, and with no shortage of goods. Finished products, neither out of stock, nor inventory backlog, to ensure the best logistics solutions for SVW. Its management performance is regularly evaluated by SVW's various indicators, and the evaluation will be directly linked to the payment.