Process Optimization Of Auto Distribution Logistics For Faw-vw Sales Company

In past two years, our automobile market has expanded rapidly. The development of our automobile industry in 2003 and in 2004 far surpasses that of the national economy at the speed. At present, China is the third, accounting for 7.5%, on the list of global top consumption of automobiles.The overwhelming increase in consumption of autos brings along the increase in auto output, which provides the opportunity for auto logistics industry in China.Nowadays, the competition on the auto market is increasingly furious, as so many auto manufacturers show up with dozen of branded cars. The decisive factors to get achievement in the competition on the auto market are no longer what the brands are and how the product's quality is. The short life cycle of a product, the difficulty to predict the market requirement and continually falling price of autos have changed the auto-market competition into the supply chains competition between the enterprises. The auto distribution logistic management as an important part of the supply chains in an enterprise plays an import roll in the success in the auto-market competitions.Compared with the developed countries, however, there exists a big difference in the auto distribution logistics in the auto manufacturers, mainly following 2 aspects:1. To high cost: more space to drop;2. Bad service of auto distribution logistics: hard to get an advantage of difference competition.Through the characteristics of the competition on the auto market and the detail analysis of the present status of auto distribution logistics industry of FAW-Volkswagen Company, this paper points out some problems existing in the auto distribution logistics management in FAW-Volkswagen Company and comes up with some concrete solutions.I.The lack of the holistic plan for auto distribution logistics managementThe first of all, since founded in 1997, FAW-Volkswagen Company has been applying the auto distribution logistic management system of the complete automobile according to the operating version of FAW-Car Company without the holistic plan which results in increasing the expense of the management, overlapping management, low efficiency of management, poor qualities of managers and bad logistic service, extra. So it is time to make a decision whether to employ the other logistics company to engage in or self-engage in the logistics.There are 2 main factors to make a decision. One is the effect of the auto distribution logistic management on the achievement of the enterprise and the other is the management ability that FAW-Volkswagen Company possesses. We should take the means of the self-engaged-in logistics in the light of the over-10-year management experience in the joint venture of FAW-Volkswagen Company. The biggest advantage of that is to drop the cost of sales logistics, and is good for the incorporate management of the company's supply chains, and also, with the help of the rich management experience of the joint venturewe can do the benefit service of the difference of the complete auto logistics in the different market areas, and promote the sales.The second is that now the sales company fails to have such a department whose function should be all in one, that is, collection and disposition of orders, arrangement of the sources, management of the stock, logistics plans, and delivery plan. The substorage and transportation department and the sales department are in split condition, which have a bad effect on the holistic plan for the sales logistics. Because of too more sectors and less consideration, it is not plenary, scientific and reasonable to make a plan for the transportation as a result. The substorage and transportation department and sales department of the sales company should to be combined in inner-functions to increase the efficiency and improve the incorporate management for the supply chains. II. The lack of the realization of the importance to the service management of logistics.With the cruel and severe competition on the auto market, the expenses take on individuation and diversificat...