1.

0 INTRODUCTION

The case study analyzed looks into the issues face by Bayerische Motoren Werke,
more commonly known as BMW, in the year 2013. BMW is a world-famous German
company which specializes in manufacturing automobiles, motorcycles, and engines.

This case study seeks to examine issues faced by the BMW company starting
from June to August in the year 2013. One primary issue brought up in the case study
is that the BMW Group received numerous complaints from customers regarding the
unavailability of spare parts for their BMW vehicles.

This problem stems from the company’s then-new supply management system
being implemented which at the time, was proven to be inefficient. As a result of this,
the ire of loyal customers have risen, citing how the lack of easily accessible spare
parts has disappointed them.

To add insult to injury towards the BMW company itself, their stock has declined
by 2.5 percent in August 2013, costing the company 45.7 billion euros.
2.0 ISSUES

As mentioned earlier, the BMW Group started having issues when customers
worldwide issued multiple complaints regarding the lack of spare parts for the BMW
vehicles which they owned.

These complaints stemmed from the fact that a new supply-management system
was introduced in the company’s central warehouse located in Germany, the country
of its origin.

As a result of the ineffectiveness of the new supply-management system, a lot of

spare parts and components could not be shipped on time towards repair shops around
the world.

Consequentially, BMW suffered a 2.5 percent dip on their stocks through the
month of August in 2013 and have struggled to deliver their components to where
they should be from June to September.
3.0 POTENTIAL SOLUTIONS

Due to the issues stated in the previous subtopic, certain potential solutions
should be considered in order to solve the problems faced by the BMW company.

3.1 Have their staff work overtime to produce and deliver spare parts faster

One solution to consider is that BMW should have their workers ranging
from their factory workers who operate the warehouse manufacturing the spare
parts to the employees entrusted to deliver the spare components to workshops
around the world to work extra shifts.

This method can be done in order to rectify the delays and lack of spare
vehicle parts which many of their customers have complained about.

3.2 Prioritize spare parts which have higher demand among customers

The BMW Group can get the manufacturing department to put more
emphasis on making components which are higher on the supply demand list.
This is done to reduce the risk of much-needed spare parts being out of stock at
the company’s main warehouse.