Supply Chain World - Fall 2017 - 49

audi mexico manufacturing & energy
Audi chose a site in San Jose Chiapa to mitigate some of its logistics
challenges, because it would be
close to parent company
Volkswagen's operations.

logistics network. In North America, however, that network didn't
exist, so an entirely new one had to
be created.
A supplier park was built adjacent
to the new factory to accommodate seven key Audi suppliers and
logistics providers from all around
the globe. This guarantees short
distances from the suppliers to the
assembly line, and allows timely delivery for components. At the start
of production, Audi was sourcing
around 70 percent of its components from the NAFTA region amid
plans to increase the level of local
sourcing over the long term.
Another challenge was the
remoteness of the factory location.
According to Koltai, the municipality has very little industrial background, so even basic
infrastructure such as roads to the
factory had to be constructed. "We
built the factory in a completely
new area with no industrial his-

"We have the same quality standards as well as
a standardized production process everywhere
around the world."
_________
tory," Koltai recalls. "The government was very helpful in building
roads and other infrastructure to
make the plant more accessible."
To mitigate some of its logistics
challenges, Audi chose the site
because it wasn't far from parent
company Volkswagen's existing
operations, also located in Puebla.
"We pushed strongly for this
location," Koltai says. "We do have
some suppliers in common with
Volkswagen and with this location
we can benefit with some common
inbound logistics carriers."
For Koltai, the completion and
subsequent success of the plant

are proud achievements. The plant
itself only took three-and-a-half
years to complete, which is stunning because it is complete with a
press shop, body shop and paint
shop. The use of building information modeling software allowed
the plan to be built virtually, with
many kinks worked out before
actual construction even began.
But once the building was finished, it still needed the skill of a
highly trained workforce. "We had
to teach our staff not just the production steps in manufacturing,
but in engineering as well," Koltai
says. "Our customers expect a very
high standard, so our workers need
to understand that and feel a passion for making a great product.
"We had to use all of our knowledge to make sure this factory
would work," Koltai continues. "It
has been successful, but we knew
from the beginning we didn't have
a chance to fail."
FALL 2017 Supply Chain World

49



Table of Contents for the Digital Edition of Supply Chain World - Fall 2017

Contents
Supply Chain World - Fall 2017 - Cover1
Supply Chain World - Fall 2017 - Cover2
Supply Chain World - Fall 2017 - 1
Supply Chain World - Fall 2017 - Contents
Supply Chain World - Fall 2017 - 3
Supply Chain World - Fall 2017 - 4
Supply Chain World - Fall 2017 - 5
Supply Chain World - Fall 2017 - 6
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Supply Chain World - Fall 2017 - Cover3
Supply Chain World - Fall 2017 - Cover4
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