Contract Logistics

Volkswagen FAW Engine (Dalian) and Kuehne + Nagel China Expand Partnership

Volkswagen FAW Engine (Dalian) and Kuehne + Nagel China Expand Partnership
Logistics Manager

Volkswagen FAW Engine (Dalian) Co., Ltd (VWED), an automotive part manufacturer operating in a joint- venture with Volkswagen (China), has signed a two-year agreement with Kuehne + Nagel to manage the inbound logistics operations in the Dalian and Changchun plants from 149 automotive engine part suppliers nationwide.

The new contract leverages a sophisticated IT solution to address VWED’s requirements for improved efficiency of operations. The solution includes the use of dynamic planning to ensure cost optimisation while managing multi-leg journeys, line hauls and reverse movement. To provide more accurate real-time tracking of truck movements, Kuehne + Nagel leveraged China’s WeChat technology: Drivers use a mobile phone to scan a custom QR code to indicate a change in shipment status, automatically triggering an update in the order management system. Utilising the WeChat platform avoids the need to install additional apps or set-up additional hardware, allowing sub-contracted truckers to also utilise the same system. This, combined with an overarching operational control tower approach, ensures full transparency of the entire operation.

Zhiyu Wang, Logistic Manager, VWED said: “Kuehne + Nagel took a complex set of demands and transformed it into a seemingly simple logistics solution. Kuehne + Nagel’s solution has delivered cost savings, efficiency and achieved full supply chain visibility for VWED.“

Pierre Li, Senior Vice-President Contract Logistics, Kuehne + Nagel North Asia said: “VWED is one of the largest international players in the automotive market in China and we are pleased to extend this partnership. This new contract showcases Kuehne + Nagel’s strength in the automotive parts industry in China bringing together the synergies of a tailored logistics solution supported by IT systems to provide full supply chain visibility.”

Contract Logistics

More in Contract Logistics

Tigers Global Expansion Continues with Relocation to New Shanghai Facility

Tigers Global Expansion Continues with Relocation to New Shanghai Facility

Logistics ManagerJune 19, 2018
Kalmar and Navis to Create Intermodal Automation Solution for Qube Logistics Park

Kalmar and Navis to Create Intermodal Automation Solution for Qube Logistics Park

Logistics ManagerJune 15, 2018
Militzer & Münch Open New Business Unit in Sri Lanka

Militzer & Münch Open New Business Unit in Sri Lanka

Logistics ManagerJune 14, 2018
UPS Opens New £120 Million London Facility

UPS Opens New £120 Million London Facility

Logistics ManagerJune 7, 2018
Kerry Logistics Acquires South African Freight Forwarders S.A.S.

Kerry Logistics Acquires South African Freight Forwarders S.A.S.

Logistics ManagerJune 4, 2018
Tigers USA Open New Facility in California

Tigers USA Open New Facility in California

Logistics ManagerMay 30, 2018
DSV and Volvo Car Open Parts Warehouse in India

DSV and Volvo Car Open Parts Warehouse in India

Logistics ManagerMay 25, 2018
DSV Open Central America Office in Panama City

DSV Open Central America Office in Panama City

Logistics ManagerMay 24, 2018
Gebrüder Weiss Announce Wolfram Senger-Weiss as Successor to Wolfgang Niessner

Gebrüder Weiss Announce Wolfram Senger-Weiss as Successor to Wolfgang Niessner

Logistics ManagerMay 18, 2018