Logistics Of Auto Parts Entering The Factory

Background

In 2014, a top 500 spare parts company tendered its logistics business in its new powertrain plant in Tianjin. Penske logistics won the business with excellent solutions and reasonable cost control among many competitors, involving the transportation of more than 30 raw material suppliers to Tianjin factory and the transportation of finished products to production lines of Volkswagen in Shanghai.

Demands of Customers

  • Preparing transportation plan for incoming raw materials
  • Performing JIT transportation tasks
  • Coordination with raw material suppliers
  • Calculation of incoming freight charges
  • JIT transportation of finished products
  • Necessary quality inspection for products

Solutions of Penske

  • Automatically export the weekly production plan of Tianjin factory from customer SAP and arrange corresponding transportation plan
  • Dynamically design reasonable transportation routes according to the weekly plan, arrange corresponding vehicle resources, and Penske TMS will monitor it in the whole process
  • Complete emergency transportation plan and resources to ensure smooth operation of the production lines
  • Based on a reasonable market price, negotiate with raw material suppliers for incoming freight charges
  • Sign a tripartite transportation agreement to clarify the responsibilities of the three parties and ensure smooth transportation operations
  • Customized vehicles increase the loading rate of transportation of finished goods
  • Set up a quality inspection warehouse in Tianjin, and partial products shall be delivered to production lines after quality inspection

Benefits of Customers

  • The annual transportation cost has been reduced by ~10% for three consecutive years.
  • The customer focuses on production, and Penske is fully responsible for logistics planning and execution, and the specialized division of labor can improve efficiency.
  • The supply chain is highly transparent with strong control ability, thus avoiding or reducing risks of the supply chain