Case Analysis Of A. Tlas Honda

Introduction

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tlas Honda Limited (AHL) is a joint venture between the Atlas Group and Honda Motor Co. Ltd., Japan. The company was created by the merger of Panjdarya Limited and Atlas Autos Ltd. in 1988. Both these motorcycle manufacturing concerns were established by the Atlas Group. In addition, a third concern, Atlas Epak Ltd. was taken over by the Government of Bangladesh in 1971 after the fall of Dhaka. AHL manufactures and markets Honda motorcycles in collaboration with Honda Motor Company. The Company also manufactures various hi-tech components in-house in collaboration with leading parts manufacturers like Showa Atsumitech, Nippon Denso and Toyo Denso. Honda motorcycles are by far the largest selling motorcycles in the country with

The changes in oil prices and energy costs have direct impact on the commodity prices and can greatly impact the pries of the commodities. Atlas Honda is also facing that same problem arising due to the volatility in prices.

Sustainable quality:

It is quite hard in this highly competitive and ever changing environment to maintain quality in both products and services. The same bottleneck is being faced by the HONDA ATLAS. The competition in the bike industry is continuously on the rise and the aspirations of the loyal customers from the company are also on the rise. Customers want quality bikes against their hard earned money.

Reliable Vendor selection:

In the era of high profit seeking and more focus on serving personal interests, it is difficult to have a reliable supplier. Suppliers most of the time tend to have contractual dealing and fail in developing long relations which then becomes a challenge for the manufacturers to deal with. On time Delivery:

Due to poor infrastructure and less developed communication systems, on time delivery may not be achieved. Effective fleet management may be required to ensure timely delivery of goods on both sides, supplies coming from supplier’s side and then delivery of finished goods to ultimate

This helps suppliers in forecasting demand for a certain product and they can then easily synchronize their production schedules accordingly. But , if these partners don’t share this highly valuable information between each other, this may lead to unexpected consequences.

Inaccurate forecasting:

If there is lack of coordination among the supply chain partners, if the flow of accurate information on regular basis is absent, then the supply chain partners must get ready for the dark times. The absence of information sharing may lead to inaccurate forecasting both at the suppliers end and at the sellers end ultimately leading to increased costs and decreased profitability.

Lack of Information sharing:

Lack of information sharing can be as deadly as poison for the profitability of the parent company and its suppliers. Information is direly needed for accurate forecasting and accurate planning. This is one of the deadliest hurdles of supply chain.

Lack of trust among