The logistics outsourcing of FAW-VOLKSWAGEN Sample Clauses

The logistics outsourcing of FAW-VOLKSWAGEN. ‌‌ The third-party logistics is a new industry emerging recent years. Nevertheless, in the early 1996, FAW-VOLKSWAGEN already had the plan of using the third-party logistics. At that time, FAW-VOLKSWAGEN had more than 300 suppliers. The costs of suppliers seemed to be too high if all the suppliers deliver the goods according to production plan mainly and the FAW-VOLKSWAGEN would suffer a huge stock if the suppliers deliver the goods themselves. The FAW- VOLKSWAGEN was torn between the two alternatives that time. However, the FAW-VOLKSWAGEN successfully solved the problem by finding a third-party agent which is called the third party logistics companies nowadays. The costs dropped as will as more detailed material delivery plan was provided by those professional outsourcing companies. The accuracy of the plan was improved which bought lots of benefits for FAW-VOLKSWAGEN without controversy. The third-part logistics outsourcing service not only included the simple business transactions, but also included some close cooperation with the agreements or contracts. As a type of the logistics outsourcing, the third-party logistics involved different enterprise entities. On the other side, it has an information system shared by three parties to make the delivery quickly, accurately and match the original plan as well. Till now, FAW-VOLKSWAGEN has developed the third party logistics system from the purchasing system to the after-sales service system. The current situation of FAW-VOLKSWAGEN's third party logistics will be introduced and the pluses and minuses will be analyzed in the following chapters.
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