Outsourcing and the new Order

JackLuis

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Volkswagen CEO ‘Annoyed Beyond Measure’ That DHL Made Electric Van

Electric vehicles are gaining popularity, but they’re still far from mainstream. So when Deutsche Post DHL wanted to replace its current delivery vans with electric ones but couldn’t find a manufacturer to produce them, it went ahead and built its own.

Deutsche Post recently revealed the ScreetScooter Work L, which the company plans to use for its fleet in Germany, at the IAA Commercial Vehicles fair. The Work L has a range of 62 miles and can carry up to 150 packages, according to a press release.

Because Deutsche Post wasn’t able to find a manufacturer to build the small volume of vans it wanted — currently just 1,000 — the logistics company went straight to parts suppliers instead, Reuters reports.

“We are purposely not reinventing the wheel,” Win Neidlinger, director of business development at StreetScooter, told Reuters. “We do not produce a single component ourselves. Everything comes from a supplier.”

When the Work L vehicles are integrated to the company’s fleet, the Volkswagen Caddys it currently uses will be phased out. As a result, VW CEO Matthias Mueller isn’t happy about Deutsche Post’s decision to manufacture the vans itself.

If the Auto industry outsources all their parts, why does a company not buy from the source and do the assembly themselves? If VW had know their customer and sought to service his account, they might have a larger share of the Electric vehicle market.
 
Volkswagen CEO ‘Annoyed Beyond Measure’ That DHL Made Electric Van



If the Auto industry outsources all their parts, why does a company not buy from the source and do the assembly themselves? If VW had know their customer and sought to service his account, they might have a larger share of the Electric vehicle market.

Depends on whether the specific parts or suppliers are legally or contractually bound to the company which produced and/or owns the designs of said parts.

Contracting the assembly is relatively simple. The labour is the big expense in assembly. A couple hundred shops each putting together three to five cars, use a competitive bid system, let each sub-contractor figure their own expenses and profit margins, sub-contract the final quality control check.
For a limited run, it actually makes a lot more sense.

Doing the assembly themselves means setting up a shop and financing equipment, hiring workers. If DHL already has the shops, it does simplify things a lot.

Kudo's to DHL and more power to them!
 
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