Auto parts manufacturer signs two-year deal with K+N

8/27/2017

Kuehne + Nagel has secured a two-year agreement covering inbound automotive logistics with Volkswagen FAW Engine (Dalian), an automotive part manufacturer operating in a joint venture with Volkswagen (China).

The deal covers the management of inbound logistics operations at plants in Dalian and Changchun where engine parts are received from 149 automotive suppliers nationwide.

K+N said the new contract leveraged 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,” said a company statement.

“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.”

K+N said utilising the WeChat platform boosted transparency and avoided the need to install additional apps or set-up additional hardware, allowing sub-contracted truckers to also utilise the same system.

“VWED is one of the largest international players in the automotive market in China and we are pleased to extend this partnership,” said Pierre Li, Senior Vice-President Contract Logistics, K+N North Asia.

“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.”