Volkswagen Group and JD Industrial reach strategic cooperation to optimize MRO material procurement

Volkswagen Group (China) today announced a strategic cooperation agreement with JD Industrial to optimize its maintenance, repair and operations (MRO) material procurement process to improve efficiency and reduce costs

According to the cooperation agreement between the two parties, the cooperation will cover seven entities under Volkswagen Group (China), covering the procurement of more than 14,000 types of MRO materials. Through the digital platform, this cooperation plan realizes the digital transformation of the procurement process, and at the same time, further improves procurement efficiency through collaborative cooperation between entities.

JD Industrial will leverage its full-chain solution advantages to assist Volkswagen Group (China) in building a digital MRO material procurement management system. The goal of this cooperation is to promote a smooth supply chain and achieve cost reduction and efficiency improvement by making data more fluid and reducing unnecessary flow of materials.

According to my understanding, this cooperation is also one of the Volkswagen Group’s strategic initiatives in the Chinese market. The purpose is to shorten the new car development cycle to meet market demand. Volkswagen plans to shorten the development cycle from 54 months to 36 months to cope with the faster development speed of competitors in the Chinese market. Volkswagen technical director Kai Grunitz once said that in order to remain competitive, new simulation tools and verification methods need to be introduced to shorten the development cycle

In addition, Grunitz also expressed concern about BYD's performance in the Chinese market Express appreciation. He believes that BYD has an excellent platform strategy, low-cost advantage and excellent battery technology, can produce high-quality cars in a short time, and has established a series of excellent factories around the world. This shows that Volkswagen pays great attention to the Chinese market and recognizes its competitors

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