Volkswagen announced the signing of a strategic cooperation agreement with JD.com to optimize the material procurement process and improve efficiency

CTOnews.com Sept. 19, Volkswagen Group (China) announced today that it has signed a strategic cooperation agreement with JD.com Industries to optimize the Group's MRO (maintenance, repair and Operations) material procurement process.

Volkswagen said that through the digital platform, the partnership will cover seven entities of the group in China, covering more than 14000 purchases of MRO materials. This move will further promote the digital transformation of the group's general procurement business and improve procurement efficiency through collaboration among group entities.

JD.com responded that the two sides will use JD.com Industry's "full-chain solution" to help Volkswagen Group (China) build a digital MRO (maintenance, repair and operation) material procurement management system. Through "let the data flow more, let the goods run less", promote the smooth flow of the supply chain and reduce the cost and increase efficiency.

According to CTOnews.com, Volkswagen plans to shorten the development cycle of its new car from 54 months to 36 months to keep up with the faster development of its Chinese competitors. Reducing the development cycle requires Volkswagen to build new simulation tools and verification methods, said Kagurnitz, Volkswagen's technical director.

It is worth mentioning that Grunitz once said that BYD is one of his most admired Chinese competitors, who can produce high-quality cars in a shorter period of time. "they have a real platform strategy, low cost and very good batteries." and set up some excellent factories all over the world. "

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Volkswagen is eager to catch up with its Chinese competitors, and the development cycle of new cars will be shortened by 1/3.