Components for Pune, Beijing & Co.
Not only in Pune or in Beijing: Assembly parts from German and European suppliers support Mercedes-Benz production locations all over the world. On behalf of Daimler, special service providers consolidate the parts in logistics centers to be sent on to the plants overseas. Since 2017, new purchasing conditions apply to this activity.
Mercedes cars are produced around the world. And in doing so, Daimler places great value on purchasing the necessary individual parts where the vehicles are produced. For certain parts however, this “local sourcing” strategy is not technically or economically feasible. In that case, the automobile manufacturer sends them where they are needed.
Consolidation centers in Germany play a great role in this process. Internally produced and externally purchased parts needed for assembly overseas are delivered here, stored temporarily, canned if needed, packed and stowed in shipping containers. The logistics center in Bremen is the hub of the international Mercedes-Benz production network. For more than 20 years, the Bremer Lagerhaus Gesellschaft AG (BLG) has been responsible for the operative processing of the north export volumes.
The logistics expert takes care of shipping to overseas plants, e.g. to India, China, USA or South Africa. By choosing the appropriate form of delivery for each case, the various local requirements of the main production locations and assembly plants can be met. It is a challenging task that demands not only expertise, but also punctuality, precision and absolute reliability from the logistics specialist.
On course for the future: Purchasing conditions and specifications
For many years, increasing production figures and new Mercedes-Benz car plants outside of Europe have been contributing to the growing requirements of the export business. To design the process as efficiently and smoothly as possible, Daimler regularly rewrites all the shipping lists. This is an opportunity for new suppliers as well as for reliable partners to measure their costs and services in the market. Because the BLG contracts ended in summer 2017, the Purchasing and Logistics departments started the tendering process of the complex north export volume with an appropriate head start, including several groundbreaking innovations.
Because the previous purchasing conditions for logistics services are no longer sufficient for this scale and complexity, Daimler Purchasing managers have developed a new framework in cooperation with the Logistics department and with support from the Legal department. The current purchasing conditions were introduced into the market with the tendering of the “north volumes”.
Common cost horizon with REC
Using the reference calculation (REC) for these kinds of procedures is another innovation. The price is no longer the single focus, rather the entire package of costs and services. Here, the long-time logistics partner could shine once again. In comparing the calculation of the supplier with the uniform REC target values, both sides can identify valuable optimization potentials as a future-oriented basis for further cooperative success in the export of parts.