YWK Company Export Logistics Process Transformation

With the fast growing of China’s auto industry, its strategic position in the world is also becoming increasingly prominent. YWK Company is a famous commercial vehicle company. It provides variety land solution all over the world. Because the world economic crisis, the Chinese market is very important for YWK as it’s the most profitable market.YWK Company started the export from China from 2010.2012 YWK company had the highest volume of the China export volume. Then 2013 the volume declining rapidly. This performance makes strongly effect on YWK export business which just started in recent years. Because export business is the most beneficial business in Chinese area if no changes on the situation of the export YWK’s year-end statement should be very bad. So YWK attaches great importance on it. Through the market analysis and survey the main reason of the declining should be the quality problems happened before the cargo arriving the destination. And the destination should pay for some extra cost for covering the issue then higher the sales price. For parts also had this problem the complete products will be expensive as the cost for covering the quality and quantity issue of the parts.According to the YWK Company’s internal analysis, setting up a logistics team (logistics center) in the Chinese company to improve the two joint venture factories’ logistics operation will be the best way to change the situation of export products, such as reducing recover costs at the destination. This flow improvement will reduce the operational costs and enhance communication and coordination of supply chain system. Thus changing the export situation, increase the competitiveness of Chinese exports of YWK Company. At the meanwhile, this flow improvement is also in line with the company’s strategy that plants should to be the production and technical center which should focus on the quality improvement. The plants should provide more competitive products.The following sentences compared the operation before the improvement and after. After listing the issue of the actual operation before improvement the sentences analyzed the work plan for the changing. At the end it showed the cost comparison and the improve plan.In the end after head quarter of YWK’s decision the improvement started. And it’s now working well. But as every coin has two sides, different modes of operation will have their own advantages and disadvantages. Although the joint venture did the logistics operation to control can make the better cooperation for the internal production. But the improvement can reduce the cost as well as improve customer satisfaction aspects. Such a change would be more beneficial to the two joint venture’s export products. And also better for the whole YWK Company to have more profits.