Shangchai Engine Implements Parts Direct Delivery Project to Improve Logistics Management Efficiency


In order to improve the efficiency of logistics management, Shangchai Company has broken through the bottleneck of logistics management, and carefully analyzed the company’s current methods of production, product characteristics, and diesel engine parts and material properties, and material characteristics. Based on the mature logistics model of advanced companies, Shangchai’s The actual situation, the implementation of supplier DD direct delivery time, there are currently more than 1,000 kinds of materials to achieve direct delivery.

Shangchai's logistics planning department will concentrate the original parts and components on a large scale to various warehouses, and change them to be delivered to the corresponding diesel engines according to the company's daily installed capacity requirements. This requires the supplier to implement the production plan for 2 weeks according to the company's production demand, and the supplier executes “T+2”, which means that the material is delivered to the company 2 days in advance, pending confirmation, transfer, and change. The original supplier delivery - logistics receipt - the material into the storage location - according to the production batch of material off the shelf - the internal short transfer to the material flow mode.

Through the implementation of suppliers' parts and materials sent directly to the market, the company effectively reduced the company's internal material inventory and reduced the occupation of diesel engine material funds. The inventory funds decreased by 23.3% compared with the beginning of the year, reducing the company’s capital occupation. Increased circulation of company funds. The “one-time landing” of diesel engine parts after entering the company reduced the logistics links, shortened the logistics route, reduced the material loss and unsafe factors in the process of multiple materials transfer, and improved the quality and labor efficiency of diesel engine parts. Reduced logistics costs.

Shangchai Company has already promoted nearly 1300 kinds of direct supply DD suppliers to suppliers. In September of this year, it began to promote 18 direct delivery of supplier parts and DD. It is planned that 38 suppliers will complete DD direct delivery throughout the year. Since the beginning of this year, the Planning and Logistics Department has turned over 15 (only) equipment, reduced energy consumption by 6,000 yuan per month, and accumulated 17,005 square meters of compressed storage space, among which the implementation of supplier parts DD direct delivery has effectively reduced the warehouse space 8100. Square meters, improve the storage utilization rate.

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