Volvo Cars transforms supply chain and logistics organisation

Following the news that Chris Godfrey had moved to a new role at Volvo Cars as head of global outbound to logistics operations, the company has revealed further details of its new supply chain logistics (SCL) reorganisation, which became effective at the beginning of April.

Talking to Automotive Logistics, Martin Corner, head of global SCL, explained that Volvo Cars had become a global organisation, with plants in the US, China, India and Malaysia, as well as in Sweden and Ghent (see table). To support this its supply chain and logistics organisation had become a strategic inhouse function with a global footprint, with regional heads replaced by a functional management organised into divisions with global responsibility.

SCL now has seven divisions reporting to Corner. 

Current inbound and outbound logistics will be split and enhanced into two areas, and constitute four of the divisions.

“One will be focused on operating excellence, driving high levels of performance and tactical improvements to the business, according to Corner, while the second function will be focused on strategy and network design, designed to drive commercial savings and an optimised logistics network. 

Magnus Ödling will head Global Inbound Logistics Engineering and Strategy and will retain his current project management role. David Rohman joins him on the inbound side heading Global Inbound Operations.

Meanwhile, Anna Wiemers will lead the Global Outbound Logistics Engineering and Strategy part of the business and is joined by Chris Godfrey as head of Outbound Logistics Operations.

In addition, Global Customs & Export Control is under the leadership of Morten Steen Jensen, while Lean Transformation of the Inbound Supply Chain will be lead by Alvaro Lechuga. Carl-Johan Krook joins the SCL management team as Global Head of Parts Supply & Logistics (the aftersales logistics division).

According to Corner the reorganisation makes Volvo Cars a truly global organisation and drives more upstream synergies and cost reductions. This falls in line with the stated aims of delivering a high-class, strategic, external supply chain for Volvo Cars serving vehicle sales, the service parts business and manufacturing.

Martin is also directly supported by Petra Pragert Boberg who leads Global SCL Governance and Staffan Johannesson, who leads Global SCL Sustainability.

Unforeseen as the coronavirus was, the reorganisation has been something of a baptism of fire for Volvo Cars, something of which Corner is cognisant, having been prevented by bans on global travel to visit the US and China as the reorganisation was rolled out.

“The big challenge is going to be when we come out of this, what is the new business direction and what challenges are we going to face,” he added. “We assume it is going to be more challenging with more of a focus on cost, and obviously we have got to manage the network as it recovers.”

Nevertheless, Corner is convinced the reorganisation of supply chain logistics is the right move at Volvo and the best long term direction for the carmaker to create a strategic supply chain logistics function.

“We are not just a manufacturing division, because two thirds of my scope is to the business for outbound and the aftermarket,” he said. “It is crucial we optimise cost but at the same time we have to provide the level of service which is generating income for the company.”