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Materi PDF
Materi PDF
Materi PDF
SUPPLY CHAIN
MANAGEMENT IN
AUTOMOBILE INDUSTRY
BUDGE BUDGE INSTITUTE OF TECHNOLOGY
BUDGE BUDGE, KOLKATA-700137
INTRODUCTION:
Cost :
For many products, 20% to 40% of total product costs are controllable logistics
costs.
Service : For many products, performance factors such as inventory availability and
speed of delivery are critical to customer satisfaction.
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Purchasing :
Stable volume Requirements.
Flexible delivery time.
Little variation in mix.
Large quantities.
Manufacturing :
Long run production.
High quality.
High Productivity.
Low production cost
Warehousing :
Low inventory.
Reduced transportation costs.
Quick Replenishment capability.
Customers :
Short order lead time.
High in stock.
Enormous variety of products.
Low prices.
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Customer
Customer Order Cycle
Retailer
Replenishment Cycle
Distributor
Manufacturing Cycle
Manufacturer
Procurement Cycle
Supplier
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Replenishment cycle:
Retail order trigger
Manufacturing cycle:
Production scheduling
Customer
Order Arrives
Insourcing/OutSourcing:
The Make/Buy or Vertical Integration Decision
Partner Selection:
Choice of suppliers and partners for the chain
Customer
Demand
Production Plan
Time
Source: Tom Mc Guffry, Electronic Commerce and Value Chain Management, 1998
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Eliminate waste
Synchronize flow
CONCLUSION
(1).The ability to be able to meet the demands of customers for ever-shorter delivery
times and to ensure that supply can be synchronized to meet the peaks and troughs of
demand is clearly of critical importance in this era of time-based competition
(2).To become more responsive to the needs of the market requires more than speed, it
also requires a high level of manoeuvrability that today has come to be termed agility.
WHAT IS AGILITY?
The use of information technology to share data between buyers and suppliers is, in
effect, creating a virtual supply chain. Virtual supply chains are information based rather
than inventory based.
Conventional logistics systems are based upon a paradigm that seeks to identify the
optimal quantities of inventory and its spatial location. Complex formulae and algorithms
exist to support this inventory-based business model. Paradoxically, what we are now
learning is that once we have visibility of demand through shared information, the
premise upon which these formulae are based no longer holds. Electronic Data
Interchange (EDI) and now the Internet have enabled partners in the supply chain to act
upon the same data i.e. real demand, rather than be dependent upon the distorted and
noisy picture that emerges when orders are transmitted from one step to another in an
extended chain.
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Conclusions:
Marketing management has not traditionally recognized the importance of logistics and
supply chain management as a key element in gaining advantage in the marketplace.
However, in today s more challenging business environment, where volatility and
unpredictable demand becomes the norm, it is essential that the importance of agility be
recognized.
Leagile is the combination of the lean and agile within a total supply chain strategy
by positioning the decoupling point.
CONCLUSION
Supply chain management is an exciting and important area of study. Specialist
companies like Exel are able to save the worlds leading businesses large amounts of
money, time and effort by creating an effective supply chain. Next time you see a new
VW Beetle you will be better able to appreciate that the high quality of the product and
its value for money are not only a result of high quality design and engineering, but also a
direct result of lean production, just-in-time methods and premium supply chain
management.