GEFCO Partners with Fiat Chrylser Automobiles in mopar North China spare part logistics distribution centre

17 February 2016

The GEFCO Group, a global player in logistics for manufacturers and the European leader in automotive logistics, is partnering with Fiat Chrysler Automobiles (FCA).

To manage the transportation, warehousing and distribution of its imported spare parts in the new logistics distribution centre (LDC) in Langfang, Hebei province, to offer flexible, efficient and reliable distribution services to its dealers in North China. Since the official launch of the spare parts LDC, the dealers in North China now enjoy an on-time distribution rate of 99.7%, and an inventory accuracy rate of 100%.

FCA’s spare parts management in North China strictly follows a planned process, with services that include inbound activities (e.g. unloading, labelling and put away); and outbound activities (e.g. by reference, packing, and repacking), as well as regular inventory management and storage optimization. Daily reports ensure effective control & monitoring, and continuous improvement in the service provided to 105 dealers. The customized solutions of GEFCO are completely in line with FCA's service philosophy and growth strategy. Its operation excellence using European standards will further enhance FCA’s quality of service, facilitating its business growth in North China, while laying a reliable foundation for its future development in China.

Ever since it was officially launched, GEFCO MOPAR North China spare parts LDC has played an increasingly positive role in optimizing supply networks, facilitating smooth logistics flow, reducing transport cost, while setting a solid foundation to further expand our market share. We are delighted to work closely with GEFCO and looking forward to providing better products and services to customers over time.

Marco AMERIO

FCA APAC Mopar - Head of Logistics

Significant Improvement in FCA’s Quality of Service in North China

The GEFCO MOPAR North China Spare parts LDC is located between Beijing and Tianjin, only a 15-minute drive away from the highway entrance, a carefully chosen location guaranteeing effective transportation. With an area of 11,500sqm, the new spare parts LDC has been outfitted with cutting-edge equipment and global leading logistics technology. Integrating GEFCO's professional logistics process, the logistics centre is completely up to European standards with high efficiency and quality.

Since the spare parts LDC was officially launched in July, 2015, dealers in North China have achieved 99.7% of the on-time delivery rate and 100% of inventory accuracy. FCA greatly shortened their delivery time to its dealers and raised customer satisfaction, while the reduction in transport cost increased competitiveness and laid a solid foundation for long-term development in China.

Market Competitiveness through Efficient Logistics Solutions

Fiat Chrysler Automobiles’ dealer network covers the whole country. FCA witnessed a over 20% increase in annual sales of imported SUV vehicles between 2012 and 2014, with its sales in North China accounting for 60% of the total. The increasing market demand in this region brings huge pressure and challenges for the only parts distribution centre in Shanghai. How to properly use its resources to shorten delivery time, cut costs, and improve the level of service have become top priorities for FCA’s development in this region.

In this scenario, GEFCO, as a World-class expert in integrated logistics, provided tailored solutions for FCA and supported the establishment the spare parts LDC in Langfang, which is dedicated to providing flexible, efficient and reliable distribution services in North China. The foundation of this logistic centre effectively complements the existing warehouse in Shanghai, and will significantly drive the development of FCA's sales and service network in North China and even nationwide, while satisfying the increasingly diverse after-sales demands of Chinese customers.

GEFCO is always committed to providing integrated logistics solutions tailored to the demands of our customers with our rich expertise and experience and in accordance with local transportation characteristics and customer demands in China. The logistics team of GEFCO China has strived for excellence in the establishment and operation of the spare parts LDC, aiming to support FCA to achieve growth and enhance its competitiveness.

Laurent SIK

Managing Director of GEFCO China

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