NEWS

Beijing, September 19, 2023 – Volkswagen Group China has signed a strategic cooperation agreement with JD Industrials to enhance the MRO (Maintenance, Repair and Operations) procurement process of Volkswagen Group China. The collaboration encompasses the procurement of more than 14,000 MRO items for seven Group entities through a digital platform. It will contribute to accelerating the digital transformation of Volkswagen Group China’s general procurement, boosting efficiency via procurement synergies among Group entities.  

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’.”

Bernhard Frost, Head of General Purchasing of Volkswagen Group China and Lead of Regional Sourcing Committee APAC, said: “We are actively advancing our Asia Pacific regional general purchasing strategy. It aims to achieve heightened transparency and leverage combined scale through collaborative efforts among our entities. The partnership with JD Industrials is the latest initiative within this strategy. Our objectives are to enhance efficiency and cultivate stronger supply chain synergies through a centralized digital platform.”

MRO materials pose unique challenges with their diverse range of long-tail items, frequent ad hoc purchases, and fluctuating demand. To further digitalize and standardize the Group’s MRO procurement, the two parties plan to establish an exclusive online MRO procurement platform for Volkswagen Group China, which will handle matching, ordering, approvals, delivery, and settlement processes, resulting in improved MRO efficiency. The initial phase will involve the procurement of more than 14,000 MRO items.

The cooperation will also contribute to the digitalization of Volkswagen Group China’s general procurement, providing robust data support for the Group’s management of the demands of its entities, budget planning and efficiency improvement.

Volkswagen Group China and JD Industrials sign MRO Frame Contract

Group Photo, from left to right: Bernhard Frost, Head of General Purchasing of Volkswagen Group China and Lead of Regional Sourcing Committee APAC; Alfonso Sancha, Executive Vice President of Volkswagen Group China, Responsible for Purchasing; Peter Chen, Vice President of JD Group, President of KA Business of JD Industrials; Ocean Hu, Director of Manufacturing Department of JD Industrials

Bernhard Frost, Head of General Purchasing of Volkswagen Group China and Lead of Regional Sourcing Committee APAC, giving a speech

Peter Chen, Vice President of JD Group, President of KA Business of JD Industrials, giving a speech