INTRODUCTION: The automotive industry is “industry of industries” because it combines almost all industries into manufacturing with upstream and downstream industries. It is assumed that automotive industry contributes much to the economy of a country. Recent technologies have enabled replacing mechanical assemblies with electronics. This paper tells that there is a huge competition in automotive industry globally as well as within India. India, China and Brazil are emerging markets where there is increasing demand and enough local manufacturing. This industry should concentrate on their supply chain management to gain competitive advantages over others in the industry because they have all other means to compete are of not much advantage. So to compete globally …show more content…
• Outsourcing by the original equipment manufacturers has increased the responsibility of the vendors in assembly and incorporation of latest information technologies.
• If information technology is implemented properly it will result in better inventory management, use of big data can produce better forecast results, the use enterprise resource packages like Customer Relationship Management and SAP can enhance the performance of supply chain management.
• The complexity can be overcome by splitting the supply chain network into sub supply chains which can increase the visibility of each sub supply chain.
• By splitting into supply chains can be helpful in implementing lean techniques which in turn increases agility i.e. ease of adaption.
• By implementing smarter supply chains which is used in creating good relationship among the suppliers, using the best of the technology to increase visibility , enhances the agility by the use of lean technologies and can be used to proper decision making will enable the Indian automotive Industry to gain competitive advantage over
Supply chain management is connected with the flow of products and information between supply chain members and organizations. New development in technologies enables organization to get correct information easily in their premises. Technologies used are helpful in coordinating the activities which manage the supply chain. By this the cost of information is decreased because now we have increasing rate of technologies. In an integrated supply chain where product or raw material and information flow in a bi-directional we as managers needs to understand that information technology is more than just computers.
The purpose of supply chain is to improve overall performance of a business. Whether organisation is functioning national or worldwide the competition is always increasing and offering products at the lowest possible cost with the best possible customer service is a way to ensure market share.
For AutoZone’s Supply chain to be Successful, the company must understand all the components of it. That will go long way when implanting the strategies and concept into the chain. Distribution is the most crucial factor in the supply chain. It determines how and when the product to get the customers. Flourishing Chain will utilize every factor that impact its distribution channel and exploit all the technology to make the distribution more active and proficient in allowing customers to acquire their parts in an opportune moment.
A supply chain is a system through which organizations deliver their products and services to their customers. The network begins with the basic ingredients to start the chain of supply, which are the suppliers that supply raw materials, ingredients, and so on. From there, it will transfer the supplies to the manufacturer who builds, assembles, converts, or furnishes a product. The chain now needs to get the product to the consumer by transporting the finished product from the manufacturer through a warehouse or distribution center. An example is that Wal-Mart has a nearby distribution center where products are delivered there and then split up to be delivered to a retail Wal-Mart. “Wal-Mart will take responsibility for breaking down larger loads and delivering the product to other Wal-Mart stores” (Ehring 1).
... important and worth mention reason for firms to involve in supply chain conducts is in reaction to pressure and threats from competitors, both domestic and internationally. High level of supply chain activities occurs when the strategies at each of the firms authentic with on the whole supply chain strategies. Each firm must recognize its job in the supply chain, the requirements of the final customer, and how these requirements are translate into internal operations needs and the needs being placed on suppliers. Manufacturers are required to better supervise the supply chain and to get better manufacturing competence and logistics operations although remaining reaction to altering market situation and customer demands. And increase the complicated global contact between suppliers, manufacturers, distributors, retailers and consumers join together these pressures.
[5] “The Smarter Supply Chain of the Future: IBM Global Chief Supply Chain Officer Study.” IBM Institute for Business Value. January 2009. http://www-07.ibm.com/sg/manufacturing/pdf/manufacturing/Auto-industry.pdf
The business environment is increasingly becoming competitive and challenging. In the recent past, manufacturers have found themselves facing the threat of dwindling profit margins due to unfortunate global events such as the 2007 global financial crisis and the on going Europe economic crisis. The need to improve operation efficiency so as to ensure current and future investment yield the highest rate of return has therefore become extremely important. Manufacturers are now actively engaged in, managing their costs, Research and Development, adopting best procurement strategies, among other Actions. While such actions might eventually lead to positive results, additional business value can be achieved through proper management of the supply chain (Waymer, Ivanaj & Mussa 2009; Krivda 2004).
The main aim of supply chain management is allow the movement of both goods & information in a manner which is appropriate to any industry.
First of all and the most important element of the effective supply chain is information technology. High information technology effic...
Two words, lean and agile, combine to make the word leagility. Supply chain managers need lean supply lines to eliminate waste and keep costs low. They also require agile supply chains to get the right amount of the product to the right place in order to satisfy the ever-changing nature of the marketplace. Traditional management recommended a lean supply chain for products with a stable demand, yet low profit margin. Conversely, products with a high profit margin and volatile demand should have an agile supply chain (Van der Vorst). Modern managers may benefit from studying hybrid supply chains that are both lean and agile.
In today world, supply chain management plays important role in businesses. In order to create efficient supply chain, right approach is essential. This essay will explain about Lean synchronization one of the most popular supply chain philosophy, role of talent and technology, and four principles to success in continuous improvement.
In present world, supply chain management plays an important role in businesses. In order to create efficient supply chain, the right approach is essential. This essay will explain Lean synchronization, one of the most popular supply chain philosophy, as the role of talent and technology, and four principles to success in continuous improvement.
...dustry gains by the linkage of it and supply chain management(being supply chain led) as more collaborative approach is provided,knowing no boundaries across firms,including various parties in the supply chain that contribute significantly to improved product quality,shorter lead times,highly responsive supply chain,at lower cost and with increased customer satisfaction levels,and by so doing reveals the significance of the automotive industry.The importance of the automotive industry is largely due to the impact it has on the economy of a country.In terms of South Africa the automotive industry is one of the most influential in terms of its contribution towards of South Africa’s GDP, contributing 6%,accounting for approximately 12% of South Africa’s manufacturing exports, making it an all Important factor in the economy.In 2010,271 000 vehicles were exported.
Lean manufacturing and just-in-time processing are great business strategies that can severely stress a supply chain. The supply chain and supply chain management is a critical operations management element for any major company to succeed and remain competitive in the global market. The supply chain is one of many pieces critical to maximizing value to the end customer and requires close management to minimize external impacts. If a company is relying on another company to supply the raw materials needed for their production line, then impacts to this other company could impact their supply chain. Careful risk management is needed to optimize performance. As a company expands into global markets and global suppliers, this risk and management challenge is multiplied. The global nature of the company could impact important activities such as transportation, funds transfers, suppliers, distributors, accounting and information sharing. Disruption to the supply chain can significantly reduce revenue, cut market share, inflate costs and threaten production. A major disruption would have obvious impacts to profit, but could have additional intangible impacts to the credibility of the company if products are not delivered on time.
• The supply chain is getting divided. At one time vertical incorporation was the request of the day. Yet the present pattern is to focus on center fitness and outsource more exercises. Along these lines the supply chain is more divided now.