Recently, global luxury car brand Volvo Cars and JD Logistics announced that the national after-sales supply chain integration project jointly created by the two parties was officially launched. As a phased result of the strategic cooperation agreement signed by the two parties in August 2021, this project will become the first integrated supply chain project in the industry jointly created by a luxury car brand and a new logistics format, bringing more efficiency and better service to Volvo users. The convenient and more transparent after-sales service experience also sets a new benchmark in the industry and helps Volvo and JD Logistics achieve mutually beneficial and high-quality development.
The national warehousing project between Volvo Cars and JD Logistics began with the initial contact between the two parties in June 2021, and has now completed the joint construction of a "3+4+1" car after-sales service The after-sales supply chain integration project marked by the layout of the parts supply warehouse network and the big data intelligent computing replenishment model not only achieves the lean improvement of the after-sales parts supply chain, but also achieves the goals of reducing costs, increasing efficiency, and optimizing customer experience. .
One of the highlights of Volvo Cars’ new warehousing project comes from the changes in the warehouse network structure. Compared with the traditional warehouse network structure configured according to regions, the new warehousing project not only upgraded the original 4 warehouses to 8 warehouses, but more importantly, redefined the warehousing responsibilities. Based on big data, the two parties set up front-end fast-flow warehouses, fast-mid-flow warehouses and slow-flow warehouses based on the characteristics and sales frequency of different accessories. The three types of warehouses based on different replenishment logics perform their own duties in the new system, so that Volvo can flexibly arrange shipments from nearby warehouses based on user needs. The arrival of dealer parts will be more efficient and timely, driving a significant improvement in the efficiency of the overall supply chain and achieving structural cost reductions while improving shipping efficiency. According to estimates, the new warehouse network structure will help improve the delivery cycle of at least 30% of dealers.
In addition, the new big data intelligent computing replenishment model replaces the traditional passive ordering model and further improves the refined management of Volvo Cars’ after-sales supply chain. Based on the characteristics of auto parts, Volvo and JD Logistics set the distribution of SKUs (basic inventory units), inventory structure and inventory parameters through simulation to achieve more efficient data management; on the other hand, according to Volvo Using past historical data and using big data to build an intelligent computing replenishment model, we can calculate the demand, supply, replenishment and balancing plans of each node in the supply chain, improve operational management, and reduce inventory cycles and costs. According to the calculations of the pilot warehouse, the warehouse order fulfillment rate under the new model has increased to more than 95%, and inventory turnover has increased significantly. After nationwide promotion, more significant management and economic benefits will be achieved.
In terms of timeliness, 70%-80% of user emergency orders can be delivered "next day". In this process, JD Logistics’ big data platform will provide traceability, updates and sharing of the entire distribution chain, allowing Volvo Cars dealers to achieve convenience through a variety of query methods (such as web pages, mini programs, customer service team docking) Customized logistics tracking inquiry. This service improvement will not be affected by closed positions on past Sundays.Limit, 365 days of uninterrupted guarantee can be achieved.
In the future, Volvo Cars will adhere to the user-centered concept, continue to work on the subsequent supply chain development, strive to improve automated warehousing, further optimize the user experience, and continue to pay attention.
Editor: Wang Yifei