Production & logistics part 4: Logistics organisations and skills

The Volvo Cars manufacturing plant in Daqing, China

How has your company’s supply chain and logistics management organisation changed over the past 20 years?

Carmakers often tinker with their logistics division, sometimes moving it from one department to another, adding or subtracting functions. Over the past decade, for example, BMW moved its logistics from purchasing to be part of manufacturing. Chrysler, which prior to its merger with Daimler kept its logistics division under manufacturing, combined it with procurement as DaimlerChrysler. When the two split, Chrysler put supply back under manufacturing, only for its marriage with Fiat several years later to result in a new, standalone supply chain management division.

More recently, Daimler made its own changes. In 2015, as part of a specific effort to reduce logistics costs per vehicle, Mercedes-Benz realigned its logistics organisation, combining in-plant logistics in a central organisation along with capacity planning, inbound and outbound logistics, headed by Alexander Koesling. Previously, plant logistics was managed by individual plants. Koesling now reports directly to the Mercedes-Benz Car board member for production and supply chain management (Markus Schäfer)…

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