The Volkswagen Group's logistics has realigned its processes to the market. For this reason we implemented a Group-wide identical parts strategy spanning beyond and array of platforms, subsequently resulting in a tighter networking across production sites.
Logistics processes within the Volkswagen Group are now aligned along the whole process chain in accordance with standard process structures. The seamlessly linked information and communication technology, the processes now flow in a much more reliable way. Internet-based capacity management has also enabled us to get considerably closer to the market.
Forward und Global Sourcing
Logistics is integrated in Forward Sourcing, that is, the worldwide sourcing process for new parts and in Global Sourcing, the worldwide sourcing process for serial parts.
As soon as we contact you with a request, we will also ask you for logistics data. These data are structured in line with a standard logistics concept and encompass delivery frequency, delivery conditions, container technology as well as information on Electronic Data Interchange (EDI) and packaging.
This information is required for each plant supplied with commodities as different transport costs are incurred. We will generally ask for the A-price (price ex supplier) and the B-price (price free buyer).
Logistics data can be transferred paper-free by using the Application Online Inquiry (ESL) at the B2B Supplier Platform. This will reduce both processing and cycle time and minimize the error rate.
Pre-serial logistics process (Readiness)
The pre-serial logistics process prepares the launch of new products (vehicles) and product action plans (updating models, legal requirements). The objective is transparent parts tracking and availability, high delivery reliability and in turn, higher customer satisfaction. The process runs analogously to product development and production preparation. It ensures a smooth logistics process for the series and also entails the review and preparation of logistics systems.
Of particular importance is the Program Readiness Process, ensuring that new parts already provided with samples can be called off just in time for the pilot production series, for the pilot run and for the Start Of Production (SOP). This is based on a detailed schedule that is worked out with the suppliers; right after the purchase decision has been made. This schedule lists binding deadlines for the sample delivery and availability of parts.
In the event of defective parts, we work closely with you to jointly analyze and solve the problem. If necessary, we will send expert teams to your site to ensure the secure supply of parts in terms of availability and adherence to deadlines.
If any part is changed the detailed planning needs to be revised with the suppliers immediately in order to prevent bottlenecks. The capacity check is carried out during the acceptance of the two-day production.
The aim of the material requirements planning process is to continually supply plants with materials at optimal cost. This is done consistently in line with the customer/supplier principle - all interfaces are determined by contracts or logistical profiles.
Material requirement planning performs the following functions:
- order acceptance and tracking
- identification of demand
- production commissioning/delivery call-off preparation
- dispatch handling and invoicing
Internally, this entails intensive communication with demand capacity management or with production program planning. Externally cooperation with suppliers is enhanced.
This includes more than just order and call-off processes. The main tasks of material requirements planning are particularly to identify and clarify delivery bottlenecks and material overlaps and also better delivery reliability and quality from an economic angle. The basis for this is communicating and collaborating with our suppliers.
Detailed discussions with suppliers and forwarders, for instance, enable controlled pre-startup costs.
The buzzword-packaging: One container variant and quantity standard will be agreed on with each supplier and a defined packing and loading program will be devised.