Case Study – Automotive logistics

Automotive Logistics in NorthEast China

The swedish carmaker Volvo who got aquired by China’s Geely Automotive in 2018/19, has now 3 plants in China to manufacture its vehicles in China. These plants are in Chengdu Sichuan Prov, Taizhou, Zhejiang Prov and Daqing, Heilongjiang Prov.

The challenge

To create a cost saving solutions with enhanced service levels, whilst maintaining existing structures and warehouse facilities.

The strategy

To bring in our existing knowledge and experience from other China-based OEM manufacturers business to streamline processes and create these savings.

The solution

We agreed to a 3 months “probationary” period, in which we took over the local warehouse operations and trucking services. We optimized the warehouse workflow and reduced required storage space and subsequent rental costs. Noatum Logistics reduced the number of labor needed to handle the goods and also optimized the trucks needed for the hourly deliveries into the plant.

The result

Whilst still at the beginning of the program, we already achieved savings to the client of more than 10% on their local spent logistics budget and passed the probation period.