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On the morning of May 18th, in the main factory of Ningbo Geely Automobile's assembly plant, Xue Tao and his colleagues were sending the required bins to the assembly line at an hourly frequency (for all kinds of parts and components). box). Xue Tao and his colleagues did not dare to have the slightest negligence: if the delivery is wrong or delayed, it may cause the assembly line to stop, that is, the "squat line." In a few minutes, it will cause tens of thousands of losses.
Although he went to work with Geely on time as the "Geely people", Xue Tao is not a Geely employee. He is from Ningbo Changlian International Logistics Co., Ltd. Since July 1, 2009, Ningbo Changlian International Logistics Co., Ltd. has officially taken over the VMIVMI (Supplier Managed Inventory) warehouse of Ningbo Geely Automobile, providing JIS (Just-Timed Order Supply) service for the total assembly line.
For many years, Geely Automobile has been known for its high cost performance, and its cost control advantages have benefited Geely Automobile in the domestic and international market competition. Now, with the help of Ningbo Changlian International Logistics Co., Ltd., Geely has improved the logistics efficiency and level by reducing the production and operation costs by introducing the services of third-party logistics companies, once again screwing out the water in the “dry towelâ€.
Let professionals do professional things. Modern manufacturing needs deep-level logistics services. There is still “water†in “dry†towels.
Cost leadership has always been one of Geely's core competencies, but against the advanced level of European and American automakers, Geely found that it can save space in the logistics sector. According to Geely Holding's annual report, the company's gross profit margin was only 15.2% in 2008, and the cost of each link in the compression supply chain can improve business performance.
Automobile logistics includes two parts: “incoming logistics†and “factory logisticsâ€. JIS is a link in the logistics of the factory. Geely's models are constantly increasing, and different models have different configurations. To achieve order-to-order production, it is necessary to produce a variety of models on one production line, namely “mixed line productionâ€. In the production process, it is necessary to realize the one-to-one correspondence between the whole vehicle and the required parts. For example, the order of the assembly line is ABC, then the parts of the non-common standard parts must be ABC. In other words, it is possible to accurately deliver a large number of parts to the assembly station rack every hour and in accordance with the sequence requirements, which constitutes the “factory logistics mode under the JIS modeâ€.
Xue Tao is the duty manager of Ningbo Changlian International Logistics Co., Ltd. He told reporters that if JIS could not be done, then the warehouse in the factory must be ready for all types of parts at the same time as the “Chinese medicine shopâ€, and prepare sufficient quantities to ensure the needs of the assembly line. In doing so, it will first increase inventory, squeeze liquidity, and increase inventory losses due to changes in production plans. Based on the advantages of vehicle manufacturers in supply and demand, this part of the inventory can be “tactically†turned to suppliers to achieve “zero inventory†on the surface, but the cost remains in other parts of the supply chain.
From the production link analysis, if the parts are not arranged in order, the workers on the side of the assembly line need to distinguish the different types of parts. In addition to affecting the production efficiency, the visual discrimination also greatly increases the probability of mismatching of parts, because some parts It seems that the difference is not big. At Geely, more than 20 engineers were specially assigned to specialize in quality inspections in this area. The company needs to pay a large amount of quality inspection fees and the cost of repairs.
However, Geely's assembly line has more than 100 stations, one station may have more than one part installed, one part has several models, multiplied, and the managed SKU (the smallest available unit for saving the location control) may be up to several Millions of species. If you do JIS by yourself, Geely not only needs to supervise the supplier to deliver the appropriate parts to the designated position at the right time according to the instructions of the assembly line, but also to deliver the materials according to the "sorting combination" delivery requirements. Send directly to the assembly station. At the same time, it is also necessary to respond to unexpected changes such as planned changes and emergency shortages. This level of specialization is by no means the core competence of Geely.
Therefore, even the mainstream foreign automakers have chosen to outsource JIS logistics and introduced third-party logistics to improve the supply chain. The third-party logistics is responsible for real-time information exchange with the OEM and supplier systems, accepting the production plan and delivery orders of the OEM, and the distribution center completes the logistics operations such as sorting, distribution and station distribution of parts.
In the words of the person in charge of Geely, Geely hopes that "professionals can do professional things and let go of third-party logistics. Geely can have more manpower and energy to focus on core components and vehicle manufacturing." Therefore, Geely invited a good helper Ningbo Changlian International Logistics Co., Ltd., which can screw out the water from the dry towel.
Logistics costs are reduced by an average of 25%
"Jili's logistics is not good," but Changlian International Logistics has "squeezed" a lot of water from dry towels. Shanghai Changlian International Logistics Co., Ltd. is a well-known enterprise that provides third-party logistics services to customers. A complete set of import and export logistics solutions, as well as one-stop services such as logistics, information flow and capital flow.
Through the Ningbo Development Zone Service Industry Development Bureau, Geely Automobile and Changlian International Logistics signed a production logistics outsourcing contract, and handed over the transportation process of spare parts from the warehouse to the production line to the well-known third-party logistics company in China for operation.
"Geely's logistics is not good." At the beginning of the cooperation between the two parties, Changlian International Logistics was responsible for the person in charge. This is of course because JIS requires a high level of real-time docking system management capabilities, in addition to the "leveling" of the Geely production plan is not high. The advanced foreign automakers can basically determine the production plan within two weeks, and Geely's production plan can only be accurate within 24 hours, which is related to Geely's market positioning. Geely strives to meet the individual needs of consumers in all aspects, and to the supply chain, it requires all types of accessories to be properly prepared, which undoubtedly increases the difficulty of reducing inventory.
The key to reducing inventory when the level of “leveling†is low is to achieve a rapid response to the supply chain. Based on Geely's industrial characteristics, Changlian has tailor-made a complete set of solutions. Through the docking of Geely's information system, it arranges the distribution of materials according to Geely's production plan and specific production instructions.
From the beginning of last year to now, Changlian's supply chain services have been in operation for nearly a year and a half. Regarding its effectiveness, the relevant person in charge of the production department of Geely has a deep understanding: “Before the company’s own distribution, it was also a relatively primitive operation, and the production process was often affected. After Changlian’s presence, the inventory of accessories was significantly reduced. It is very helpful for the smooth progress of the production process."
The person in charge feels right. After the logistics outsourcing, Geely's spare parts inventory area was reduced by 3,000 square meters. The inventory time of parts and components has been shortened, and the number of turnovers has increased significantly. At present, Geely's parts are generally only stocked for one day, and a few are in about 2 days. The average monthly turnover of Geely's parts warehouse logistics has also increased from 6 to 8-9 times, with an average increase of 2-3 times per month, an increase of about 30%. The capital turnover rate of Geely supporting enterprises has been significantly improved.
The saving of Geely's logistics costs will also greatly help its core competitiveness. Xue Tao told reporters that before the Changlian stationed, the production logistics cost of each Geely automobile was 80 yuan. The current cost has dropped below 60 yuan, and the average production logistics cost per vehicle has been reduced by more than 20 yuan. Last year, Changlian served 80,000 complete vehicle calculations, saving logistics costs of more than 1.6 million yuan. Geely's logistics costs are reduced by an average of 25%.
The small card plays a big role in a small billboard, so that the distribution response time of Changlian is only within 5 minutes, reaching the advanced level of international car enterprise logistics. At the same time, inventory accuracy increased to 99.7%
Kanban is actually a small card that is more than 10 centimeters long and 5 centimeters wide. But you should never underestimate this card. Geely produces a variety of materials, each of which corresponds to a kanban. There are not only the information such as the name, quantity, packaging materials, supplier status of the material, but also the materials in the barcode. The "footprint" left behind. With this Kanban, Changlian has truly realized the “kanban-driven supply model†in Geely. Compared with the traditional “plan to promote the supply modelâ€, the new model has obvious advantages.
First, the accuracy of inventory is greatly improved. At the end of the year and the end of the year, the accuracy of Geely's inventory was 99.6%, and the accuracy of Class A materials with large value and small quantity was 100%. In the inventory of the middle of last year, among the more than 1,300 materials, there was only one triangular glass for the rear window. After careful inspection, it is a problem when the goods are handed over. In the inventory at the beginning of this year, the accuracy of inventory increased to 99.7%.
Secondly, Changlian's delivery response time is less than 5 minutes. This is an advanced level of international car enterprise logistics. Xue Tao said that the use of popular language to explain is that once the Geely production line has an emergency situation, urgent delivery is required, and Changlian can send the materials to the corresponding station accurately within 5 minutes. In the monthly logistics satisfaction survey of more than 10 team leaders in the assembly line, Changlian’s scores increased month by month. In the latest survey just completed recently, Changlian’s score reached a new high.
Today, at the more than 100 stations in the Geely assembly plant, a small billboard is playing a big role. Xue Tao told reporters that "the kanban-driven supply model" is still being improved and improved. Under the circumstances that Geely's production capacity will increase significantly this year, it will play an increasingly important role.
The person in charge of Geely said that Changlian’s “kanban-driven supply mode†service has greatly reduced the management coordination of Geely. Geely no longer needs to deal directly with many parts suppliers, but through its own ERP system. The production information feedback to Changlian directly realizes the order, inquiry and information feedback, and forms a quick response JIS distribution system, and the efficiency of the entire supply chain is obviously improved.
Reporter’s note that Lingang’s industry needs a good “housekeeperâ€
Some third-party logistics companies that manufacture companies to serve themselves are affectionately called "housekeepers".
The reason why third-party logistics is spreading like a craze in the world is well explained in the cooperation between Changlian and Geely: third-party logistics can optimize the enterprise value chain, so that the production enterprises will focus on the core business. In addition, it not only helps enterprises to reduce costs, but more importantly, it can prompt enterprises to re-examine their business processes and re-integrate various businesses in the operation of the enterprise in a new mode to optimize process management.
As the first third-party logistics company introduced by Ningbo Development Zone, the cooperation between Changlian and Geely has brought tangible benefits to both parties. We also hope that more and more good "housekeepers" will be proud of the Lingang industry services that Ningbo people are proud of, and hope that there will be more "marriage" similar to Changlian and Geely.
