Volvo’s just-in-sequence inventory strategy

Headquartered in Gothenburg, Sweden, the Volvo Group has six production facilities in Europe, including the Torslanda plant, also located in Gothenburg. Torslanda is Volvo’s largest plant producing approximately 300,000 cars a year.

DFDS Logistics has been a critical part of Torslanda’s supply chain for more than 20 years. For the past six years, DFDS has provided just-in-sequence (JIS) delivery, helping keep Volvo’s production as lean and efficient as possible.

Around-the-clock operations

“For us, just-in-sequence delivery means around-the-clock pick-up and delivery of parts,” explains Henrik Ageflod, General Manager of DFDS Logistics Gothenburg. “33 trucks and 99 drivers pick up tires, dashboards, steering wheels, and other parts from surrounding local suppliers and deliver them directly into the cars on Torslanda’s assembly line. Three planning managers coordinate this operation, which runs 24 hours a day, 5 days a week.”

Volvo’s JIS strategy is key to its production. “If there is a single setback in the delivery process – if one of the trucks has a problem, for example – and the part does not arrive on time, it could mean Volvo needs to shut down production, which is incredibly expensive. Our objective is to ensure the line is always moving, and that means being reactive and proactive at the same time.”

Close cooperation makes it happen

DFDS has daily meetings with Volvo about how to remove risk from the delivery schedule. “We work very closely together to find ways to plan better and react faster,” says Henrik. “Both companies need to do their part to optimise the flow of supplies. We have great cooperation and that helps great ideas come to fruition.”

DFDS Logistics also provides JIS services to Volvo Group Logistics Services, which produces trucks, buses, and construction equipment in Gothenburg, and to Volvo Cars in Ghent, Belgium as well.

To hear more about DFDS Logistics’ capabilities please get in touch with Henrik Ageflod at ushag@dfds.com.

You can also read about how DFDS helps Volvo’s production benefit from just-in-time delivery of the right type of steel from ArcelorMittal.