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New Chinese Vehicle Manufacturer – Designing a Turnkey Automotive Supply Chain from ​scratch

Katy Farrington / 6th November 2014 / Comments (0)

Brand new vehicle manufacturers don’t get created everyday – but when they do they are free of ties to the past and can select the very best solutions for the future. They have the opportunity to out- perform competitors by combining all the latest industry standards, technology and processes in a structure to help them excel.

 

This was the opportunity facing a new Chinese vehicle manufacturer in 2012, as the new joint Israeli and China backed company started planning for their aftermarket business - initially in China but with serious global ambitions. With the need for a complete end to end aftermarket solution, the Chinese vehicle manufacturer appointed Unipart in 2013 to engineer a supply chain that would ensure their customers would benefit from world class standards of after sales service.

Our engineering background helped us fully understand what this task entailed.  We started by listening to their aspirations and then set about designing, refining, testing, and ultimately launching an aftermarket supply chain that takes the very best from all the rest.

 

At the heart of the Unipart solution for the Chinese vehicle manufacturer is our proprietary Unipart Logistics System.  This brings together a range of systems: from the vendor facing start of the supply chain; through inventory management; to forecasting; scheduling; warehousing; distribution; reporting; customer service and financial management.

 

Delivering this entire system from scratch was a challenge that required Unipart to harness our wide skill base and combine it with our existing local market resources in China.  This was further enhanced with a local recruitment programme and their immersion into the Unipart Way.

The task that the project team faced in early 2013 cannot be under-estimated, as the Chinese vehicle manufacturer's aftermarket sales supply chain started from a blank sheet of paper.

 

Since launch it has functioned as a fully connected process, one that links engineering with parts master data, then to forecasting and scheduling and in turn to vendors and inventory management.  Product receipts are linked to an advanced warehouse design and storage system, which also receives dealer orders and then despatches daily to the rapidly growing Chinese vehicle manufacturers dealer network.

 

All of this is delivered by our team of 30 locally recruited employees who are fully trained in the Unipart Way.  They are responsible for managing all the benchmark contractual metrics from a network of 200 plus vendors, through to a dealer network expanding across China – and all as a prelude to the Chinese vehicle manufacturers planned entry into Europe.

 

We delivered a turnkey aftermarket supply chain, very much built in China but with a UK background and a truly global future.

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