Research On Inbound Logistics’ Improvement Of FAW-VW Plant2

The economic development of China step into rapid-progressing period since21st century. The quality of people’s life is rising stage by stage and the number ofprivate cars has increased rapidly. These make China become the main sale market ofevery large car manufacturing company. Toyota, Volkswagen, General Motors andother international auto giants have created joint venture plant plan with Chinese autocompanies. This approach further accelerates the development speed of Chinese automarket. And the market competition will be tighter and tighter. Every large carmanufacturing company takes a series of measures to enlarge the market portion, suchas cut costs, technological innovation, improve the quality of services and so on. Toreduce production cost and achieve a competitive price, every large car manufacturingcompany has paid highly attention to logistics, which is considered as an enterpriseorigin of the3rd profit. How to use scientific methods to improve logistics mode, andreduce logistics cost, has become the main research direction of car manufacturingcompany.According to the production and operation process of car manufacturingcompany, automobile logistics can be classified as inbound logistics, productionlogistics, distribution logistics and reverse logistics. The four modules are mutualconnection and influence. The subject of this dissertation is inbound logistics.Through the survey and analysis of FAW-VW Plant2’s inbound logistics managementprocedure, the author suggests to apply Milk-run transportation mode into inboundlogistics transport for reducing logistics cost.Milk-run transportation mode has been used in lots of abroad industries,especially in the auto industry, electronic manufacturing industry and retail industry.According to their successful experience, the logistics mode based on Milk-run canreduce a lot of logistics cost. Since Ford using Milk-run logistics mode into inboundlogistics management, its delivering time reduced3days, transportation retention timereduced80%, and excessive inventory reduced50%. The demand of electronicmanufacturing industry change largely, so they have to keep highly safe buffer stock.KONICA MINOLTA has controlled its safe stock into24hours by implementingMilk-run transportation mode. Retailing giant Wal-Mart and Tesco also have drawnMilk-run into their procurement of goods. This paper takes the inbound logistics of FAW-VW plant2as research subject.The purpose is to propose economic and rational inbound logistics modifications. Themain research contents include: analyzing the management status of FAW-VW plant2’s inbound logistics; dissecting the exist question and proposing inbound logisticsimprovement program which is based on Milk-run; researching the design method ofMilk-run transportation mode and listing the planning process. The purpose of thisdissertation is to provide science proof for FAW-VW plant2to reduce logistics costand enhance market competitiveness.