Supply Chain Management & Logistics Strategy

Identify and critically evaluate the major supply chain issues of conventional volume car
manufacture and explain how these issues had been addressed by the Smart Concept and
Logistics at MCC.


The smart car is definitely one of the best innovations of the hundred years. It is usually the
simplest businesses on this planet that generates profit while materializes ecological
safeguarding visions. The smart car is definitely an ideally little auto that is made from synthetic
whole body panels as well as a strengthened metal covering, which suggests less energy and
heavy-industrial substances necessary in the process of producing them. The best characteristic
in this auto is its superb fuel gas consumption. Quite simply, the smart car is petrol useful,
which will not, just helps the car owner reduce your bills gasoline, but additionally minimizes
the Carbon dioxide release from shedding the gasoline, for that reason tremendously
contributes to the safeguarding of our environment. The fact that these kinds of cars are
available in such little measures brings much convenience to city car or truck those who
appreciate inserting instead of by using communal car or truck. Together with the effective
marketing of your Clever Car company, not only is it a famous memorable car or truck in
Europe, but also a buzz-car generally. Although it doesnt t seem possible that everyone takes in
a Smart vehicle in the end, it's definitely good news that Smart car becomes a vigor and a trend
together with the present understanding request within the car or truck industry that
encourages auto producers to go green using new model thoughts. If highly car owners could
change to creating use of smart car ingesting bio fuel, global climatic change would otherwise
be substantially slowed down, considering the fact that automobiles are one of the crucial
options for CO2 launch this causes global warming.
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There is a number of issues which are being faced by people all over the world in reference to
their businesses. Same is the situation with the top leading car company i.e. smart car. After
discussing all details about the supply chain management and history of this company I came
across a number of things, so lets have a highlight over them.

Critical evaluation through ansoffs model

The Ansoff Development matrix is that which makes enterprises decide and sell development
method. Ansoffs product/market development matrix means that a business tries to increase
rely on it (Mintzberg, 1994). It doesnt t matter if it sells new or actual things in new or existing
markets.

Here is a small analysis of the current and new products which are linked with the smart car;

Current Product

New Product

Current Market Market Penetration Product Development
Strategy: Strategy:
Establishing more distribution Spending Continuously on
centers research and development
Advertisements, promotions
and Test Trials
Providing more services
Providing free accessories
offering highest degree of
customization
New Market Market development Diversification
Strategy: Strategy:
Selling in New Location s
outside Europe Small Trucks business
Making 4 seater cars Small Buses for city use


Thus, all of these are known are to be the perfect elaboration of market. The smart car is having
different kinds of issues in their supply chain management system. For example, establishing
the more distribution centers is known to be one of the major requirements. This seems to be
quite necessary kind of option in having a complete kind of advertisement, promotions and a
well known recognition in the market. Thats why it is being said that in order to get the
suppliers there is a need to make different sort of diversification. The better integration would
be done; more analyzed kind of results would be ascertained in a perfect manner.

One thing which I would like to include over here is that when a company is trying to compete
in the market then there is always a need to have some specified kind of approaches through
which people are able to allocate special kind of positioning of a company. This is the same
approach which is currently being required by this smart car. There are;

a) Multiple kinds of strategically plans which might be followed in order to get the market
penetration and market development.
b) A further enhancement of key features
c) A developed approach in reference to the type of the area where it is being presented
to the customers.
d) Differentiation in pricing.

Thus, all of these requirements are called to be a definite kind of approach which is being
required in order to make a distinctive kind of change in the supplying management.


A new idea which is being generated by the smart car is to provide the most convenient kind of
car. Through that people are able to sort out their travelling issues and enjoy them in a perfect
manner.


Supply chain management must sort out the subsequent issues:

a) Dissemination Locality Form: diversity, position and community operations of
manufacturer, producers, dissemination facilities, warehouses, cross-docks and
customers.
b) Distribution Approach: inquiries of running supervise (crucial, dispersed or common);
give plan, e.g., directly delivery, pool aspect delivery, irritated mounting, DSD (directly
safe delivery), shut ring shipping; availability of transportation, e.g., vehicle supplier, just
like truckload, LTL, parcel; railroad; intermodal shipping, similar to TOFC (viewing on
flatcar) and COFC (component on flatcar); ocean freight; airfreight; replenishment
approach (e.g., draw, shove or forced); and transit manage (e.g., owner-operated, secret
supplier, regular supplier, transaction supplier, or 3PL).
c) Trade-Offs in Logistical Behaviors: These kinds of actions should be good ready as a way
to attain the deprived wide logistics cost. Trade-offs may raise your total cost if perhaps
among the actions is managed. For instance, full truckload (FTL) expenditure are more
inexpensive by using a cost per pallet foundation compared to under truckload (LTL)
give. If, however, complete truckload of these products are commanded to reduce
transportation expenditures, it is going to be an increase in stock absorbing expenses
that may improve wide logistics expenses. That is why it is leading to take systems
method once preparing logistical habits. These trade-offs are chief to creating the best
and beneficial Logistics and SCM approach.
d) Facts: Integration of steps throughout the supply thread to share prized truth, including
demand signs, forecasts, give, transportation, potential teamwork, etc.
e) Supply Administration: Level and location of stock, similar to materials, work-in-progress
(WIP) and done things. Cash-Flow: Arranging the settlement phrases and methodologies
for purchasing and selling cash across thing inside the provide thread.
On the other side of picture if we take a look at the contemporary and all those future
challenges which are being faced by the supply chain management then we come to know that
there are some differentiated kind of things which are necessary to be overlooked by the
management staff of company. The better they are being focused; more positive kinds of
results would be achieved in a perfect manner.
First of all, the customer tailored products is known to be one of the basic necessities of these
smart car manufacturers. Not only that, an initiation of more services, the distribution of
services to the targeted or final customers, outpacing high quality and low cost and the increase
in the international competition are called to be the major challenges which are being faced at
this time of world (Wisner, Tan and Leong, 2008).

Secondly, major approach which is being interlinked in all of these prospects is the supply chain
and the perfect management. Both of these necessary elements are called to be a distinctive
kind of approach in which if the linkage is being broken then issues occur. Thats the main
reason that a gap between the suppliers and the supply chain management segment is beard
by the company. As shown in the diagram below;














Analyze and explain how the concept of extend enterprise and postponement applied to
MCC and how these contributed to the integration of material and Information flow
throughout Smart Cars supply chain?

In reference to an extended enterprise a long Business may be a casually paired, self-organizing
neighborhood of businesses that combine their own monetary output to deliver services and
products preferences into the market (Davis and Spekman, 2004). Corporations in the lengthy
company may fit individually, by way of example, via industry tools, or kindly by agreements
and contracts.
The idea of the Lengthy Enterprise has taken on more significance as corporations became
more specialized and inter-connected, job is becoming more worldwide, steps have become
more standardized and information is being common. The standardization of venture processes
has permitted businesses to purchase as offerings lots of the actions that in the past were
provided directly from firm. By outsourcing certain company characteristics with been
previously self-provided, similar to transit, storage, buying and selling, communal connections,
information technology and the trending world, corporations have been ready to focus their
very own assets on those capital and activities that provide them the most effective fee of send
(Kempf, 2010). Leftover "main experience" authenticate the firm's special valued at proposal.
Whereas, the Postponement can be a business
plan that increases possible help and decreases risk by stalling further funding right
into services or products till the last possible second.

Thus if we think about both of these concepts then we come to know that
a) Smart car is trying to make business penetration
b) They are targeting market
c) They are doing proper management
d) Smart car strategies are directed towards the self motivation and standardization of
services
e) There is an effort of interconnection which is being established for supply chain
management for making an in-depth increase in the organization
f) Specialized resources
g) Proper communication with suppliers
h) Understanding needs and requirements of a company
All of the above mentioned characteristics are part of the strategic planning and the extended
and postponement strategies, for that reason this company is trying to follow a number of
successful and patronized kind of strategies which were being developed by MCC. They would
be helpful in getting rid of the latest and future issues in a smoother manner.
Some of the advantageous supply chain management methodology is being shown in the
diagram below;











Analyze and explain how to control and assure performance in the supply chain of Smart Car,
not on the basis of ownership but through co-operation with suppliers.

The Smart has been made with identical quantities of collision protection because the
Mercedes-Benz 'A' Magnificence. Onboard security equipment includes; publicize bags for
passenger and driver, essential safety seating, ABS brakes, 'Trust-Plus' (a digital grip and
stability manage), 'Tridion' sanctuary chamber, passivity seat belts with strength limiters, using
part safety bags being an non-compulsory extra. All substances are made to provide most
safety in the case of the collision. At every stage the Wise is created to be environmentally
friendly and right at the end of those days its nearly one hundred pc biodegradable. In
automotive manufacturing circles, the way the Smart is made has drawn all the consideration
for the reason that vehicle. While the Smartville complex fail to be totally copied, it is an
experiment mattress for and a give thread into your most, straining production--and part of the
funds rate burden--out to suppliers. It all in Smartville is outsourced, from inventorying nuts
and bolts The provision thread are literally new that are available and go beyond this kind of
actual habits as vendor involvement, freelancing and modular creation in the industry. Tools
such as full front or back tops are pre-assembled on website and manufacturer are involved in
layout and final meeting via co ownership of your website, co-design as well as some major part
in the producing actions. With the untraditional system, MCC entrepreneurs epidermis these
challenges and tough situations similar to how to manage and canopy a give thread where MCC
only offers a few 15 percent of this functional valued at added. MCC can be found as a pilot for
utilizing mass-customization in an automotive provides chain.
There is always a need to have proper connectivity between the supply chain management of a
company through help of the suppliers (Blanchard, 2007). Thats why here is a diagram
showing that how we need to make proper kind of controlling and assuring the quite
performance in the supply chain management. Not only that, this is called to be a pre-defined
kind of opportunity which is being established from the side of a supplier.
In between the supply chain management competences and the smart car company there are
different kinds of things which are being counted. The process owner switchman, the marketing
awareness, internal integrator, price, cost, product and a number of other statistical factors are
there. All of them are called to be helpful in providing the deficient kind of approach in
providing the competitive advantage to a firm. As shown in the diagram.


There are different kinds of sourcing systems which are highly helpful in providing an in-depth
approach (Jespersen, and Skjott-Larsen, 2005). There are different sort of technology enabler,
the procurement co-ordination, strategic planning, supply relationships, transaction
management and a number of the process element which are included in the organization and
people enabling aspect. All of them are highly helpful. They are being labeled as a kind co-
operation of the supplier and the firm. They are highly helpful in boosting up the supply chain
management.







Smart has a number of clear advantages which are linked with the inter-relation of supply chain
management and the supplier co-ordination, this also includes
a) Merchandise range could be without several costs
b) The idea of modular creation and setback allows budget friendly variety
c) The commonality of modules as well as the regular features of production processes
allows a decreased stage stock and quick phase times
d) The involvement of suppliers and dealers is immoderate because of the huge share of
value supplementary these kinds of create and the involvement that they have got in
product/process development
e) The fast phase instances transform into small lead circumstances where modular
creation and postponement allow for only a dialogue using customers
f) The marketing concept itself challenges conventional auto marketing by establishing
new programmes (similar to websites), retailers (centers and stores), physical codecs
and customer involvement in creating a tailored product
g) Additionally, the automobile matches in just a mobility-concept for city traffic that
includes a manage arent-a-car agency for lessened rental fees for contracting a Smart in
overseas highly urbanized cities, and other motorcars, such as four rake causes, when
the consumer requires a different movement to that delivered by a Smart
h) In summary, all makes it possible to make new distributes in just a stuffing enterprise.
Thus, all of these differentiated kinds of perspectives are known to be the remarkable kind of
opportunities which are available for the smart cars in reference to their suppliers control and
the extra ordinary kind of management systems.




References
Blanchard, D. (2007). Supply Chain Management: best practices. 1
st
Ed. Canada: John Wiley and
sons, Inc.
Davis, E. and Spekman, R. (2004). The extended enterprise. 1
st
Ed. USA: FT press
Jespersen, B. and Skjott-Larsen, T. (2005). Supply Chain Management: In theory and practice.
1
st
Ed. Denmark: Copenhagen Business School Press.
Mintzberg, H. (1994). The rise and fall of strategic planning. USA: Library of Congress press.
Kempf, K. (2010). Plannign Production and inventories in extended enterprise. USA: Springer
Wisner, J., Tan, K. and Leong, G. (2008). Principles of Supply Chain Management. 2
nd
Ed. USA:
Cengage Learning