...and Supporting Technology in the Automotive Supply Chain: A Suppliers Focus” DR. Anu Maheshwari DR. Sanjay Shankar Mishra Guest Lecturer, Dept.of Commerce Prof. & Hod of Commerce Department Govt. T.R.S.College, Rewa Govt. T.R.S.College, Rewa (MP) INTRODUCTION: In today’s manufacturers’ world, suppliers play an ever more important role. The purchased materials of an average manufacturer account for over 50% of the cost of goods sold [RHS97]. Suppliers therefore have a large and direct impact on costs, in addition to quality, technology, speed, and responsiveness of buying companies. Reinforcing this point, Ragatz, Handfield et al.[RHS97] noted that the “effective integration of suppliers into product value/supply chains will be a key factor for some manufacturers in achieving the improvements necessary to remain competitive”. It is no longer company competing against company, but supply chain versus supply chain. Figure 1: Integration in the supply chain. Source: [FW01] Therefore the ultimate success of a single business will depend on management’s ability to integrate the company’s intricate network of business relationships. Figure 1 shows this integration along the supply chain. The management of multiple Permission...
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...the Earthquake and Tsunami in Japan in spring 2011 was to bring to the forefront the issues of supply chain venerability. Use the article from the Congressional Research Service for an article review. In your review, discuss how the specific situation could have implications in a broader sense. This article was a great detailed as well as a depressing topic covering the events of the earthquake and hurricane occurrence on March of 2011 at the northeast coast of Japan. This happening was the most powerful natural disaster in Japan’s modern history. Affecting the challenge for Japanese government, businesses, and societies was the resulting ruining of several nuclear reactors in the region which supplied electricity for homes and industry. Located in the disaster expanse are a number of manufacturing facilities which are vital to the global motor vehicle supply chain. These areas took a big hit which was seemed to be preventive in resolution based off the imagery and cost factors of how the end result of the hurricane and earthquake effected those critical locations. These facilities include warehouses that assemble automobiles and many suppliers which build parts and sub-components for vehicles. The effects of these disasters has been first and foremost accepted by Japanese automakers, which closed many of their assembly plants for several weeks as they evaluated their supply chain issues and impact on their essential sub-tier suppliers. Japanese motor vehicle plants in other...
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...Inbound freight takes center stage | Page 1 Inbound freight takes center stage Ford Motor Company Case Study Inbound freight takes center stage Inbound freight takes center stage Contents Snapshot The challenge The solution The rollout Issues encountered Results Logistics finally catches up with ‘lean’ 1 2 3 4 4 5 5 Share this case study Tweet about this case study Follow Viewlocity on Twitter Share this on Linkedin Connect to Viewlocity on Linkedin Share via email Inbound freight takes center stage | Page 1 Snapshot Ford Motor Company Key challenge To balance inbound freight costs for thousands of parts across hundreds of suppliers with the high frequency of deliveries needed to support just-in-time (JIT) automobile manufacturing. Solution Ford deployed the Inbound Planning Engine from Viewlocity Technologies that considers multiple factors and constraints necessary to meet lean manufacturing requirements at the lowest possible cost. Factors considered included: • • • • • • • • Load sequencing across suppliers Quantities per load Trailer capacity Load configuration Dock schedules and capacities Production schedules Target plant inventory levels Return of part containers to suppliers Upon consideration of all of these factors, the Viewlocity Inbound Planning Engine was used to determine the plan for the right quantity and delivery frequency for every part at the lowest possible cost. The Viewlocity Inbound Planning Engine was first...
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...Quality Issues in a Global Supply Chain: Who is responsible? There is not one entity to blame solely for the faulty capacitor. A supply chain that involves a lot of different stakeholders makes it harder to keep control over the process. In a case like this, there is more than one factor to take into consideration; financial, ethical, and contractual burdens are to be placed on the responsible corresponding parties. All stakeholders share some responsibility for the supply chain fiasco. It seems that placing the blame on one party would be unfair, which is why it is better to evaluate each entity’s responsibility and fault in the issue. As the OEM and final user of the capacitor before reaching the customer, Ford should have been more involved in the supply chain and quality control. With more than two tier suppliers involved in the production of the actuator it is important for the customer to be closely involved in order to minimize margins of errors. With better and closer involvement in the production process, communication in the supply chain could have been enhanced, allowing for a more efficient and effective strategic coordination between suppliers. However, Ford failed to pay attention and guarantee final quality checks, to evaluate for better suppliers, and lacked the drive to ensure perfect working conditions in the production line and decisions made throughout the process. Even though they had hired Automek to manage the supply chain on their behalf, they were...
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...business WEB Seeds of Growth Use the Web to focus on customer needs and grow your business. By Ralph A. Oliva “You can’t always get what you want, But if you try sometime, You just might find, You get what you need.” –The Rolling Stones I N T H E P A S T T W O Y E A R S businesses have done well in cutting costs and improving productivity. But more and more businesses are recognizing that they’d better think about putting growth back on the agenda. Waiting for help from the market, for a miracle to happen, or for some other impetus to drive growth is simply not a strategy today. Savvy managers are finding ways—including smart use of the business Web— to drive growth through demand innovation and the creation of fundamental new value. We still hear thoughts like: “Maybe in a few months we’ll get a little help from the economy.” “Maybe we’ll beat up our suppliers some more, and that’ll improve our bottom line.” “Let’s look for the next great new growth industry we can tie into, and that’ll drive growth.” Well maybe. But for most of us, that’s just not going to happen. There are growth opportunities out there now— even when markets aren’t growing. Savvy business managers are recognizing that ongoing cuts and waiting simply are not sustainable strategies. Understanding how a firm may capitalize on its hidden assets and work with customers to harvest new sorts of value can be key to growth for many firms. And smart use of the business Web and digital techniques for connecting...
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...l287/inte.l050.0187 ISSN 0092-21021 EissN 1526-551X1061360310194 @ 2006 INFORMS 3, May-June Strategic Planning Production Bernhard and Logistics, Germany, of BMW's Network Fleischmann University of Augsburg, Global of Production Department D-86135 Augsburg, Universit?tsstra?e 16, bernhard.fleischmann@wiwi.uni-augsburg.de BMW AG, D-80788 Sonja Ferber, Peter Henrich M?nchen, Germany (sonja.ferber@bmw.de, peter.henrich@bmw.de) We sites cars developed over a to the a strategic-planning planning markets. model horizon. It determines 12-year assembly, improved Key words: global and paint shop, the transparency to BMW's allocation of various optimize as well It includes the supply of materials the investments in...
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...an analysis of the profound changes in the productive structure of global capitalism. In the electronics industry, a new model of outsourced manufacturing has emerged as the centrepiece of globalized production networks: Contract Manufacturing (CM) or Electronics Manufacturing Services (EMS). This form of network-based mass production is closely linked to the disintegration of the value chain and the emergence of the “Wintelist” (Borrus and Zysman 1997) model of competition and the rise of “fabless” product design companies in key sectors of the IT industry. In contrast to the general perception of the “informational economy” (Carnoy et al 1993, Castells 1996) as service- or science-based, the rise of the CM-model demonstrates that manufacturing still matters in the "new economy" (Cohen and Zysman 1987). This development also highlights the interaction of new information networks with the restructuring of production, work, and the global division of labor in technologically advanced industries. In this paper, we want to take a closer look at the restructuring of production and commodity chains in the assembly of IT-hardware (such as computers, internet switching and telecommunications...
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...International Business Academy * Deadline: 26th of January, 2012 * Supervisor: Stefan Eberle * Number of characters: 39 713 Preface The purpose of this project is to fulfil the second project in our course, so we kept it in our mind during writing it. That why our main audience is also given, our opponent team, who are going to mark and grade it. We choose this problem statement, because our team wanted to analyse the mother company’s status and make conclusions of it. Also to see, how is it possible to maintain not a price driven strategy, but a quality driven strategy in nowadays markets. 26.01.2012. ______________________ Table of content * Introduction, Resume page 4 * Supply Chain page 5 * Buying behaviour page 8 * ABC analysis page 11 * PESTEL page 13 * Porter’s 5 forces page 16 * SWOT page 19 * Summary/ Conclusion page 23 Würth Case Würth is a German company and it was established by Adolf Würth, in 1945. The company supplied screws, nuts and bolts at the beginning. After Adolf Würth’s death, his 19-year-old son Reinhold took over the running of the business. From...
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...Masters of rural markets: Accenture Research Report The Hallmarks of High Performance Contents Foreword: Unleashing India’s rural multiplier effect Growing business confidence in rural opportunities The attractions and distractions of rural markets 03 05 09 Distinctive capabilities that enable 15 companies to succeed in India’s hinterland Framework factors critical to nurturing distinctive capabilities Developing the right capabilities—and acting on them Last word 28 29 31 2 Foreword Unleashing India’s rural multiplier effect But rural India’s contributions to the nation’s economic success—and the obvious potential for profitable growth—is just a part of the promise of wholehearted commitment to doing business beyond the city centers and suburbs. India’s rural markets offer unprecedented opportunities for global and local companies to experiment with approaches and business models, which if successful, may be replicated in rural markets of other emerging economies. India is on the march. Its momentum is not only evident in metros— it is apparent in small towns and villages as well. Collectively, all over India’s rural heartland and in its teeming cities, India is readying for an even more impressive era of economic growth. There is no question that India’s rural markets are becoming a powerful economic engine. One telltale sign: rural accounts now comprise over 50 percent of new subscribers for some of the leading telecom providers.1 The rural multiplier...
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...IT TAKES A LEADER TO TAKE YOU PLACES. A n n u A l r e p o r t 2 0 1 2 2 0 1 3 Growth is… movinG from strenGth to strenGth Flamingos, known for their undeniable beauty, are also recognised as a species that stays strong by sticking together, no matter how trying the circumstances are. But for a flock to be strong, it needs an equally resilient leader to take them in the right direction. Just like Gati, the leader of the logistics industry in India. Gati Limited is India’s leader in providing Express Distribution services, Supply Chain Solutions, Cold Chain Transportation Solutions, Warehousing, International Freight Forwarding, Custom Clearance and e-Commerce Solutions. Founded in 1989 as a cargo management company, Gati pioneered Express Distribution Services in India. With a track record of 24 years, Gati is one of India’s most coveted companies, employing 3500 people, and serving over 5000 customers – including the top 10 brands in the Automotive, Healthcare, Engineering and Consumer Durables industry. Gati has a strong market presence in the Asia Pacific region and SAARC countries, with offices in China, Singapore, Hong Kong, Thailand and Nepal, and has plans to foray into other markets. In a Company where every employee demonstrates dedication and commitment to succeed, its little wonder that Gati is the leader, taking the industry places. values are… a force to be reckoned with Flamingos, as is ingrained in their DNAs for centuries, instinctively have values that...
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...Report - Automotive Logistics India 2010 - Automotive Logistics India http://www.automotivelogisticsindia.com/82/Report/[10-12-2010 00:00:14] CONFERENCE 2009: Market boom, but where are the 3PLs? PUNE 2-4 December 2009: As delegates assembled in Pune, India’s car sales figures for November were released – and they made startling reading. Growth is back in India: market leader Maruti Suzuki saw sales jump 60% over the same month in 2008 (though only 17% up on 2007); Tata Fiat was up 55%; Hyundai up 93%; GM up 65%; and Mahindra more than doubled at 102%. The figures confirm that late 2008 was just a brief pause in the upward trajectory of car production and sales. But logistics is groaning under the strain. Both speakers and delegates lamented the low cost/low investment logistics model which exists in the automotive sector in India. OEMs called for a significant increase in the low level of involvement from sophisticated 3PLs. About the conference Read the conference reports via these links: 1 - Overall conference report 2 - Special report on packaging 3 - Special report on supply chain management See the conference programmeand speakers. See archive information about the previous two annual India conferences by using the top navigation. See the Jan-Mar 2010 issue of Automotive Logistics magazine for a report in print, together with market statistics. The 2010 conference will be from 8-10 Dec in Chennai. Register your interest. This conference was the third...
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...A STUDY ON SUPPLY CHAIN MANAGEMENT IN AUTOMOBILE INDUSTRY DR. Anu Maheshwari DR. Sanjay Shankar Mishra Guest Lecturer, Prof. & Hod of Commerce Dept. Govt. T.R.S.College, Rewa (MP) Govt. T.R.S.College, Rewa (MP) The changing business conditions of the 21st century has led to companies facing issues ranging from globalization, economic uncertainty to new technologies and increasing consumer demands. In the automobile industry, as manufacturers design and build vehicles globally, their supply chains become increasingly complex with challenges that often stand in the way of profitability and higher shareholder value such as long order-to-delivery lead times, unreliable production schedules, excess inventory across the supply chain, lengthy demand planning cycles and lack of visibility of suppliers. The effect of the global economic meltdown increased the pressure on automotive executives to make right decisions about their supply chain for better performance. In a highly challenging and competitive environment such as today, where supply chain is a popular tool for improving the organizational competitiveness. OVERVIEW OF SUPPLY CHAIN MANAGEMENT IN AUTO-INDUSTRY [pic] The Auto Ancillary Industry can be Further Divided into Six Main Segments: ❖ Engine Parts - Engine assembly, fall into 3 broad categories: core engine parts; fuel delivery system; and others. ❖ Electrical Parts - The main products in this category include starter motors, generators...
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...world, has produced more than 3.5 million vehicles in 2010 alone. The Indian automotive industry in mainly includes the industries associated with the manufacturing of two wheelers, three wheelers and four wheelers-such as cars and trucks. The major Indian players include Maruti, Mahindra and Mahindra, Tata Motors, Ashok Leyland, Bajaj Auto and TVS Motors. In 1990s and after, Indian automotive industry saw many foreign players establishing their manufacturing and assembly plants in India, catering to the Indian market. Major foreign players include Toyota, Hyundai, General Motors and Volkswagen Group. Major automotive hubs in India are Chennai, NCR and Pune. As the operations of automotive industry are increasing rapidly in terms of volume and complexity, companies in India need to follow global standards and best practices for achieving optimization of their supply chain. One of the practices, which are followed by leading companies, is fourth party logistics (4PL) company, or a lead logistics provider (LLP) Need for 4PL 1) Concept Definition: Lead Logistics provider or 4PL 4PL is term introduced by Accenture in 1996.It describes 4PL as an "integrator that assembles the resources, capabilities, and technology of its own organization and other organizations to design supply chain solutions". 4PL i.e fourth party logistics provider is a company which re-designs a manufacturer’s or retailer’s supply chain; implements the solution and then manages the logistics companies required...
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...events in the global scene have had a significant impact on supply chains especially JIT operations. Discuss what these events are and their impact on the role of warehousing in the supply chain. JIT or Just-In-Time has been defined as an inventory control whereby is to maintain or control just right quantity materials in just right place at the just right time for the just right amount of products or manufacturing (Lee White, 1985). JIT concept was originated in Japan in the 1950s when the Toyato Motor Company developed a system known as “Kanban” to meet customer demand for various models with minimum delivery delays. When we talk about JIT we cannot run away from warehousing as warehousing is part of a supply chain logistic network. Warehousing is used for store or house of inventory for all stages of a supply chain JIT is a demand pull system in which manufacturing planning begins with the final assembly line and works backwards, not only through the various manufacturing processes, but also to the vendors and subcontractors supplying materials and components. Therefore two things must happen in order for JIT to work: ➢ All parts/materials/components must arrive where they are needed, when they are needed and in the exact quantity needed ➢ All parts/materials/components that arrive must be usable parts Hence any natural disasters occurred it will certainly affect the impact on supply chains especially JIT to the factory. Following are how great calamities...
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...Druke, Hoenig (2011). Managing uncertainty, an empirical analysis of supply chain risk management in small and medium sized enterprises. International Journal of Production Research, Vol. 49, No. 18, 15 September 2011, 5511 – 5525. Research Classification In the past years, a fairly new research area has emerged on the supply chain management scene and has gained considerable attention from both academics and practitioners: Supply chain risk management. Thun, Druke, and Hoenig set out to empirically investigate, supply chain risk management in small to medium sized companies. By analyzing data from 67 various German automotive manufacturing plants, the authors seek to identify the key drivers of supply chain risk and look at the various methods or instruments of supply chain risk management to determine their suitability by comparing those smaller enterprises with the larger companies. The results are visualized in the probability-impact-matrix distinguishing between internal and external supply chain risks. Statement of Problem The authors sought to answer two main questions: What are key drivers of supply chain risks, and what is their likelihood to occur and their potential impact on the supply chain? and, what are the instruments for dealing with supply chain risks and their impact on performance? These questions gave way to three Hypothesis: H1. Small to medium-sized enterprises regard their supply chain as more vulnerable that large scale companies. H2. Small and medium...
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