Gold for ŠKODA Logistics System: Best in Europe

Gold for ŠKODA Logistics System: Best in Europe ŠKODA’s logistics system is number one: ŠKODA’s production area has come out on top in the ‘European Gold Medal in Logistics and Supplier Chain’ competition. By presenting this award, the European Logistics Association (ELA) has acknowledged the top quality and high efficiency of ŠKODA’s internationally oriented logistics system.  

Logistics systems are among the crucial success factors in automotive production. ŠKODA’s top ranking once again underlines the outstanding level of ŠKODA’s production logistics. The manufacturer had already received an award earlier this year in March for ‘Logistics Project of the Year in the Czech Republic’.

The European Gold medal for logistics and supply chain management, organised by the European Logistics Association (ELA) is based on a similar principle to the Champions League. The ELA is a federation of 30 national organizations from Central and Western European countries. Only the winning projects from national competitions reach the European final. After winning the national title ‘Logistics Project of the Year’ in the Czech Republic in March 2014, ŠKODA’s logistics area continued their success and presented their innovative solutions in Brussels. The expert jury narrowed 30 of the best national logistics projects down to just six finalists, selecting companies in various industrial sectors.

“We are delighted to have been recognised at a European level,” says Jiří Cee, Head of ŠKODA’s Logistics. “Over recent years, ŠKODA has invested heavily in their production logistics, and consistently fine-tuned the area to the highest efficiency, perfecting the processes. The result has been one of the most powerful logistics systems in the automotive industry. It is here that the production area is making a significant contribution to ŠKODA’s growth strategy.”

The sophisticated, powerful and internationally oriented system at ŠKODA ensures that the right vehicle parts and components are available across the entire logistics chain at the right time, at the right place and to the required quantity. The entire logistics process incorporates 13 ŠKODA production facilities around the world. Between January and August 2014 ŠKODA produced 696,600 vehicles – more than ever before in the first eight months of a year.

As part of their growth strategy, the Czech manufacturer has expanded and modernized key areas of their logistics. Since the beginning of 2013, the new ŠKODA Logistics Centre   has been setting new standards in terms of design, size and conveyor systems at the main factory in Mladá Boleslav. 33 high bay racks have been installed in a 15,500m2, 18-metre-high, semi-automated logistics hall to supply the site’s vehicle and powertrain production areas with materials. A fully automatic, 60-meter conveyor tunnel to the M13 production hall and state-of-the-art warehouse technology ensure the fast, flexible and highly efficient supply of parts.  

The Mladá Boleslav plant has been using a new fully automatic transport trolley for a year. This is an automated guided transport system that delivers the necessary parts and components directly to the shelves on the assembly line. This saves time and money. The use of new ‘pick-by’ systems has also made a significant contribution to the plant’s efficiency, ensuring the necessary parts are delivered to the assembly line exactly when they are needed – the so-called ‘Just-in Sequence’. Since the end of last year, ŠKODA has been using a new solution a sequence container with ‘Pick-by-Frame’. This technology helps the employees when loading the picking cart and makes the process safer.  

The newly opened ŠKODA Parts Centre has been a supporting pillar of ŠKODA’s Logistics since April 2013. As part of its modernization, the total area of the central warehouse doubled to more than 100,000m2 – the equivalent of 12 football pitches. In total the company has invested around EUR 31.8 million into the new centre. With approximately 25,000 daily deliveries, the ŠKODA Parts Centre is responsible for an important part of the global supply of genuine parts and accessories for ŠKODA AUTO, as well as the Group brands VW, Audi and Seat. It is the largest genuine parts centre in the Czech Republic.  

Currently, around 1250 people are employed in ŠKODA’s production process, ensuring that millions of parts, components and vehicle systems are transported to where they are required. Every year, approximately 52,000 shipments are transported by rail alone to and from the three Czech ŠKODA plants. In addition, 469,000 truckloads are sent to and from these same locations each year. The warehouse and logistic areas also cover vast spaces: at the three plants of Mladá Boleslav, Kvasiny und Vrchlabí in the Czech Republic, the logistics areas cover a total of 321,000m2 – as large as 40 football pitches.