Recently, volvo cars and JD Logistics, a global luxury car brand, 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 between the two parties in August 2021, the project will become the first integrated supply chain project in the industry jointly built by luxury car brands and new logistics formats, bringing Volvo users a more efficient, convenient and transparent after-sales service experience, setting a new benchmark in the industry, and helping Volvo and JD Logistics achieve mutually beneficial and win-win high-quality development.
Volvo Cars and JD Logistics National Warehousing Project began with the initial contact between the two sides in June 2021, and has now jointly completed the after-sales supply chain integration project marked by the "3+4+1" automotive aftermarket parts supply warehouse network layout and big data intelligent computing replenishment model, which not only realizes the lean improvement of the after-sales parts supply chain, but also achieves the goal of cost reduction, efficiency increase and customer experience optimization.
One of the highlights of Volvo Cars' new warehousing project comes from the changes in the structure of the warehouse network. Compared with the traditional warehouse network structure configured by the region, the new warehousing project not only upgrades the original 4 warehouses to 8 warehouses, but more importantly, it has re-differentiated the warehousing responsibilities. Based on big data, according to the characteristics of different accessories and sales frequency, the two sides set the front-end fast flow warehouse, fast middle flow warehouse and slow flow warehouse, based on different replenishment logic under the three types of warehouses in the new system to perform their duties, so that Volvo can flexibly arrange the delivery of the nearest warehouse according to the needs of users, the arrival of dealer accessories will be more efficient and timely, driving the overall supply chain efficiency to a significant increase, shipping efficiency at the same time to achieve structural cost reduction. It is estimated that the new warehouse network structure will contribute to at least 30% of the dealership distribution cycle to be improved.
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 have set the distribution, inventory structure and inventory parameters of SKUs (basic inventory units) through simulation to achieve more efficient data management; on the other hand, according to Volvo's past historical data, the intelligent operation replenishment model built by using big data can calculate the demand, supply, replenishment and balance plan of each node in the supply chain, improve operation management, and reduce inventory cycle and cost. According to the calculation of the pilot warehouse, the warehouse order satisfaction rate under the new model has increased to more than 95%, the inventory turnover has been greatly improved, and more significant management and economic benefits will be achieved after the national promotion.
In terms of timeliness, 70%-80% of users' urgent orders can achieve "next-day delivery". In this process, JD Logistics' big data platform will provide traceability, update and sharing of the whole distribution link, so that Volvo Cars dealers can facilitate logistics tracking and query through a variety of query methods (such as web pages, mini programs, customer service team docking). This service upgrade will not be limited by the previous Sunday close, and can achieve 365 days of uninterrupted protection.
In the future, Volvo Cars will uphold the user-centric concept, continue to focus on the follow-up supply chain development, commit to the improvement of automated warehousing, further optimize the user experience, and continue to pay attention.