Volkswagen's Virtual Task Force Boosts North American Vehicle Logistics
A Virtual Task Force, spearheaded by Volkswagen Group, has made significant strides in enhancing vehicle logistics across North America. Established under the Finished Vehicle Logistics North America 2024 conference in California, this task force has swiftly implemented strategies that have yielded remarkable results.
The task force, led by Simon Motter, head of Group Logistics, has brought down working capital backlog by a staggering 92%, translating to a savings of $1 billion. Their mission is clear: to explore opportunities that benefit the region collectively and operate as a cohesive unit.
One of their key achievements is the increase in shipping capacity out of Mexico by approximately 60% within a mere 30-45 days of their formation. This was accomplished by opening a new terminal in Freeport, Texas, and expanding yard capacity in Veracruz. They have also experimented with container transport to create more space on the ground in Mexico, further optimizing their logistics network.
The team, under the guidance of Anu Goel, executive vice-president, Group After Sales & Service, has worked diligently to solve port problems and strengthen rail relationships in Mexico. Their efforts have also led to a 100% increase in shipping capacity from Volkswagen's Chattanooga Assembly Plant in Tennessee. The group is committed to deepening synergies between its brands and regions, with a focus on improving Estimated Times of Arrival (ETAs) and decision-making across the group.
The Virtual Task Force, established by Volkswagen Group, has demonstrated remarkable success in enhancing vehicle logistics across North America. Their strategies have resulted in significant cost savings and increased shipping capacity, contributing to improved efficiency and effectiveness across the group's supply chain.
