Sep 25, 2023|

Volkswagen Group China Partners with JD Industrials for Digital Transformation of MRO Procurement


by Vivian Yang

Volkswagen Group China and JD Industrials recently inked a strategic partnership to digitally transform the MRO (Maintenance, Repair, and Operations) procurement process for Volkswagen in China. By leveraging JD Industrials’ advanced digital solutions, the initiative aims to bolster efficiency, streamline operations, and achieve cost reductions in Volkswagen’s procurement processes.

Having been a steadfast partner in China’s automotive landscape for nearly four decades, Volkswagen Group has built a comprehensive supply chain ecosystem within the country. The newly minted agreement integrates JD Industrials’ “full-chain solution,” designed to provide a seamless, one-stop online MRO procurement and digital management service for Volkswagen—from materials matching to order execution and financial settlement.

JD Industrials’ intelligent digital procurement platform enables precise analysis of MRO inventory metrics. This empowers Volkswagen with data-driven insights that optimize inventory management, minimize costs, and inform strategic decision-making.

Initially, the partnership will encompass seven entities of Volkswagen Group China, incorporating a vast array of over 14,000 SKUs in various MRO categories, ranging from advanced automotive testing tools to personal protective equipment and office essentials.

Alfonso Sancha, Executive Vice President of Volkswagen Group China responsible for Purchasing, said: “As the automotive industry undergoes a rapid transformation, procurement is a significant pillar to secure the Group’s strategic success. Volkswagen Group China is committed to transforming procurement in order to fulfill local demands with innovative local solutions, while supporting the Group’s development ‘in China, for China’.”

Chen Esheng, Vice President of and General Manager of JD Industrials KA division, said, “The automotive industry, with its rich century-long history, stands as a pillar of modern manufacturing. Given its intricate supply chain complexities, incremental digitalization is insufficient for achieving true cost-efficiency. JD Industrials remains committed to delivering tailored supply chain solutions for the automotive sector.”

“Together with our partners, our vision is to create a resilient, cross-industry digital infrastructure that accommodates a wide range of materials. This will enable seamless data exchange and reduce the physical movement of goods, paving the way for a more efficient and sustainable future,” Chen added.