SUPPLY CHAIN MANAGEMENT

Supply Chain Management



Case Study on Supply Chain Management and Logistics Strategy

Major Supply chain issues of conventional volume car manufacturer

Supply chain is recognized as the major opportunity for business improvement for almost all the industrial sectors. The sector of automotive is the furthermost advanced in its supply chain management but there are some major issues which are being faced by the conventional volume car manufacturers. If the supply chain is managed effectively by the automotive sector than it can bring substantial outcomes and the benefits would continue (Achrol, 1999, 146).

The needs of the customers should be met reliably, quickly and consistently on high service levels. But this was not being done by the conventional volume car manufacturers and they were facing problems in making their customers satisfied. The main issue is to keep up the quick and rapid pace of technological advancements. Growth and change is needed to make a place in saturated market. While keeping costs level under control, the quality and diversity is difficult to achieve. The marketing strategies are old and the companies do not focus on innovative ideas. Many industries have just started to recognize the importance of supply chains, and are not able to make progress. The demand of the customers could not be met by such industries. They face ultimate issues of cost effective processes and in providing compelling value to the customer. The conventional industries are not able to connect extensively with suppliers and customers. They lack continuous improvement required in saturated markets. The strategies built are not up to date and does not contain such features which makes the product different from others. Flexibility is absent. People, processes and systems are not adaptive and innovative (Achrol, 1999, 146).

Issues addressed by the Smart Concept and Logistics at MCC

The supply chain issues which are conventional for car manufacturers are addressed by Smart cars. The set-up of the Smart has a number of apparent and obvious benefits (Achrol, 1999, 146).

Variety of the product can be supplied to the customers without additional costs, this is not easy to handle. The issue which is being faced in the market is addressed by Smart Cars and is able to create a strong position in the saturated market. The idea of modular creation and rearrangement permits cost efficient, diversity, the harmony of modules and the general nature of manufacturing processes allows fast cycle times and a small level of stock (Bowersox, 2003, 18).

External integration is strong. The involvement and participation of dealers and suppliers is high. This can be done due to the large share of value added they create and the input that they have in product and process development. Fast cycle times interpret into squat lead times while postponement and modular production allows for a dialogue with customers and enable them to deal greatly with the conventional issues (Bowersox, 2003, 18).

Marketing Strategies are infamous and creates hype. Marketing concepts challenges the conventional car marketing by establishing new channels which includes internet sites, ...