EXECUTIVE SUMMARY
An analysis of the current situation revealed the following issues in the current spply chain:
Ø Information flow impaired beyond level one suppliers.
Ø Development of Information Technology in the supplier base.
Ø Competitors headed to a virtual organisation.
The decision to be taken is whether to virtually integrate the supply chain (create a virtual marketplace accessible to authorised personnel) or carry on operating the traditional way automakers have.
The recommendation is to virtually integrate by creating an online centre where for a small fee, using only an Internet browser suppliers will have access to the centre’s large database. This facility will be extended to dealers and customers.
The implementation costs will be approximately, but there will be significant amount of savings by the way of purchase discounts and lower transaction costs on materials, and parts. Also as there is reduced buffer stock due to speedy real time information flow leading to reductions in inventory and storage costs. Additional revenue will be generated from transaction fees and advertisements placed.
CURRENT SITUATION ANALYSIS
PHYSICAL FLOW OF GOODS
Ford has a large supplier base for material procurement in a complex network of business relationships.
Ø The supply base consists of several tiers of suppliers. Ford directly deals with
tier one suppliers and these deal with the next tiers. If feasible the lower
tier suppliers ship materials directly to Fords’ manufacturing unit.
Ø Long-term contracts with suppliers have been negotiated to ensure uninterrupted
supply and minimum inventory levels.
Ø Ford has provided its suppliers with techniques like Just-In-Time, (JIT) Total
Quality Management (TQM) And Statistical Process Control (SPC). Ford benefits by
procuring materials at reduced cost and supplier involvement in the company
operations like design process, leading to cost saving for both parties.
Ø The Ford Production System (FPS) is designed to make the operations leaner,
efficient and more responsive to the customer needs, hence reducing production
costs and improving profit margins.
Ø The Regional mixing centres optimise schedules and delivery of finished vehicles
via railway, to provide customers the right product at the right time and place,
Gulfstream Aerospace is one of leading corporate jet manufacturers in the world. They have been building jets since the late 50’s and continue to create top of the line aircraft which have become the status symbol of success. With their success comes an extensive company infrastructure and supply chain. First, we will discuss how Gulfstream uses the location to maximize the effectiveness of its supply chain. Then we will look at the business case for Gulfstream’s approach to its supply chain, and in particular, does it make sense to have a car follow supplies while it is on the rail system. Finally, we will look at Gulfstream’s to the “just in time” manufacturing and its strategic approach to choosing locations.
In this report I will discuss different solutions for PVMS to help them improve network communications between the stores and head office, and centralize procedures for recording stock. This report will list the advantage and the disadvantage of each one.
In the 1960s through the 1970s, companies realized strong engineering, design, and manufacturing functions were strong market strategy keys to create and capture customer loyalty. As the demand for new products rose in the 1980s, these market requirements were to increase their flexibility and responsiveness to adapt existing products and processes or to develop new ones in order to meet customer needs. As manufacturing improved in the 1990s, managers began noticing material and service inputs involving suppliers and their major impact on an organization’s ability to meet customer needs. As a result of these changes, organizations now find that it difficult to manage their own organizations. First, they must be involved in the management of their network of all upstream firms that provide directly or indirectly, as well as the network of downstream firms, which are responsible for delivery and market service of the product to the end customer.
Food industry can be chartered by low margin industry, while along with the shift of power from the manufacturer to the purchaser, the price and demand became flexible, and the product variety increased.
It is simple to see logistic and supply chain networks in action such as warehouses storing, shipment transporting products and customers consuming those products and services. This is determined by how the management of the company plans its upcoming activities and transforms their inputs into outputs efficiently to the global market. Therefore, this is no exception for a high-end automotive component, industrial products and automotive manufacturer like BOSCH, Canada. This report will outline the supply chain flow and purchase in BOSCH Canada. However, there are several challenges such as failing to manage inventory well and the inaccuracy of demand forecast faced by the company. Therefore, several recommendations are discussed within this report in order to expand the business widely.
Supply chain management is basically refers to the fundamental supply chain analysis of the organization which predominantly describes functionalities from source to the delivery point. In this process of delivery, supply chain management framework divides in four categories: In Planning the products and suppliers evaluated and selected, Sourcing pull the information process including contracting, ordering and expediting, Moving is a physical process from suppliers to end user and Paying is the financial process including payment and performance measurement.
Wal-mart has been able to achieve respectable leadership in the retail industry because of its focus on supply chain management. Discuss in detail the distribution and logistics system adopted by Wal-Mart.
1. Every organisation in both the public and private sector is in varying degrees dependent on materials and services supplied by other organizations (Johnson and Flynn, 2015:36-37). In your view, what role can supply play in determining an organization's strategic growth?
UK Morepeth facility, the company’s ability to integrate over seas businesses and ramp up of
Express Parts, Inc. made a proposal about an internet-based trading system which would enable distributors to post inventories and prices to an internet platform and thus give customers the opportunity to shop for prices.
The Scotts Company started selling hardware and seeds in Marysville, Ohio in 1868. It specializes in seeds, fertilizers, peat, potting soils and other organic materials. By 1995, Scotts was the world’s #1 marketer of lawn and garden products. European operations were launched in 1993, with HQ in Lyon, France, and additional five European businesses acquired in UK, France, Germany, Austria and Benelux.
This system connects, accumulates, processesas well as provides imperative information to all parties thus enhancing continuity in the procurement process. However, if valid output is to be expected, features as well as requirements of the procurement process must be compatible to current system technologies (Giner, et al, 2011). The harmonization of suppliers as enhanced through the adoption of electronic sourcing enables firms to readily identify new potential suppliers for specific needs when old suppliers` capabilities are in question. The adoption of E-tendering that supports sending requests of pricesand information to suppliers as well as receiving suppliers responses improves on procurement efficiencies as it leads to significant cost reductions thus leading to better procurement performance through cost savings.For this system to achieve desired results however,all users must beready and willing to adopt the new systemsso enable seamless adoption and consequently ensure optimal
Coolcargo and Frito-Lay implemented technical solutions for agricultural-products transportation following customers’ requirements. Coolcargo developed a transport-system for maintain fresh asparagus at controlled temperature from production site in Thailand to final destination in UK (UOL, 2013). Frito-Lay developed a global agile supply-chain for manufacturing and distributing salty-snacks to end-customers that allows processing agricultural-products in less than 24 hours for flavor guarantee (PepsiCo, 2013).
The consumer can use the middleman’s equipment to develop his own program and deliver it to the users through internet and servers.
With about 187,000 employees and 62 plants worldwide, the company’s automotive brands include Ford and