Beijing (ZXZC)- On September 19, Volkswagen Group China announced the inking of a strategic cooperation agreement with JINGDONG Industrials ("JD Industrials") to optimize its Maintenance, Repair, and Operations (MRO) material procurement processes. 

Signing ceremony; photo credit: Volkswagen

This groundbreaking collaboration, facilitated through a digital platform, will span across seven Volkswagen Group China entities, encompassing the procurement of more than 14,000 MRO materials. The move is poised to accelerate the digital transformation of the group's general procurement operations, enhancing procurement efficiency through collaborative efforts among group entities.

Alfonso Sancha, the Executive Vice President of Volkswagen Group China responsible for Purchasing, emphasized the pivotal role of procurement in the automotive industry's rapid transformation. He stated, "Volkswagen Group China is committed to driving transformation in the procurement field, offering innovative local solutions to meet domestic needs, and supporting the group's 'In China, For China' development strategy."

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 present distinctive challenges due to their wide array of less common items, frequent spontaneous purchases, and unpredictable demand fluctuations. To further advance the digitalization and standardization of MRO procurement within Volkswagen Group China, both parties intend to create an exclusive online platform dedicated to MRO procurement. This platform will oversee tasks such as matching, ordering, approvals, delivery, and settlements, resulting in an enhanced MRO efficiency. The initial stage of this collaboration will focus on acquiring more than 14,000 MRO items.