Page 4: The challenge for supply chain management
When Volkswagen decided to produce its new Beetle model, the goal was to transfer the lean manufacturing technique and highly effective just-in-time supplier park model from the VW/SEAT assembly plant in Martorell in Spain, to Puebla in Mexico.
Exel has worked with car manufacturers to develop a park system of managing end operations of the supply chain for motor vehicle assembly. Many of the key end component suppliers are located close to the final assembly point. Exel has created and manages the JIT system that ensures a smooth running supply chain of parts to the new Beetle final assembly plant which eliminates waste from the process.
Volkswagen collaborated with Exel, which designed, engineered and now operates the innovative Park in Spain, to transfer the park model to Mexico. The Supplier Industrial Park in Spain was created near the factory and now includes 35 suppliers. Subassembly activities are carried out at the Park, guaranteeing JIT delivery and zero stocks at final assembly lines.
Exel is responsible for primary transport from the component suppliers’ main plants to the Park. The company is also responsible for warehousing, picking, subassembly and sequencing operations, and deliveries to the assembly lines. When new deliveries are required for assembling the cars messages are communicated from the plant by EDI (Electronic Data Interchange) giving Exel sometimes only 105 minutes to notify suppliers and prepare and deliver subassemblies to the final assembly line. The Exel JIT sequencing operation is the cornerstone of the supplier industrial park that serves the Volkswagen assembly plant.