Total scope for Pithampur

From 80-plus suppliers to the engine factory, and from the factory to customers in Europe and the Far East. The all-new logistics setup for the engine factory in Pithampur, India, includes all kinds of logistics expertise – from strategic consultancy to implementation of transport networks, customs routines and packaging systems.

The new engine factory in Pithampur, VEPT, is the result of a joint venture – VE Commercial Vehicles (VECV) – between Volvo and Indian engine manufacturer Eicher Motors. The plant is part of Volvo Group’s Asian strategy. It was inaugurated on February 2 and will be operational in late 2012. Volvo Logistics’ role in the MDE Industrial project is to provide support through cost-effective logistics solutions.

"Volvo Logistics became involved at a very early stage," relates Helena Eriksson, Product Manager Supply Chain at Group Trucks Operations (GTO) Powertrain Production. "The first phase included cost calculations which were the basis for the overall strategic industrial decisions. After evaluation of various alternatives Volvo Logistics was appointed total logistics supplier for VEPT. The main benefits we saw were that Volvo Logistics is fully aligned with our worldwide setup and that all our logistics centres will be managed by the same provider."

"The most challenging task was the complexity," says Ian Powell, project manager at Volvo Logistics. "We have designed and will implement the supply chain set-up for approximately 40 domestic and 40 international suppliers, including the introduction of V-EMB packaging. We have been involved in internal logistics and the set-up of an onsite logistics centre. We started with a green field and had the opportunity to really optimise the entire supply chain. Since we also handle the operations we have full control of every detail."