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Harley davidson final

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Harley davidson final

  1. 1. Case Study PresentationBy: Lillie Collins, Daniel Mayer, Stephen Buyachek, MichaelMayer 1 of 26
  2. 2. What comes to mind whenyou hear Harley Davidson? mfEkj2I&feature=player_detailpage Harley Davidson has a loyal fan base that interacts via clubs, events and a museum. For their 105th anniversary, in 2008, Harley Davidson had 125,000 preregistrations for the event. Here in Vegas they offer learn-to-ride classes, motorcycle rentals and other events such as Street Vibrations Rally in Reno, Nevada. 2 of 26
  3. 3. “Taking theWork out ofBicycling” Founded in 1903 William Harley Arthur Davidson 3 of 26
  4. 4. Born to be Wild1920, largest motorcyclemanufacturer in the worldwith 28,000motorcycles/year with 67countries1998, shipped 150,000motorcycles up 14% from1997Plan 2003, increaseproduction capacity by100th anniversary 4 of 26
  5. 5. They all want a piece of the pieHonda SuzukiYamaha Kawasaki 5 of 26
  6. 6. Problems Harley Davidson Was Facing? Strong Japanese competition (Honda, Yamaha, Suzuki) Capacity constraints led to decreased international market share Due to rapid expansion, quality control suffered Nearly went bankrupt in the 1980s What are some ways that Harley Davidson could recover from this? Harley Davidson created a team to improve the supply chain, focus on quality assurance, standardize systems and processes, and 6 of 26
  7. 7. Change in theair 1995, Garry Berryman joined Brought the will to change the purchasing organization 7 of 26
  8. 8. 8 of 26
  9. 9. Understanding Company StructureWhat is unique about Harley’sOrganizational Structure? Create Demand (CDC) Produce Products Group (PPG) Provide Support (PSC) Circles of Leadership Information Technology Circle (ITC) 9 of 26
  10. 10. Supply Management Strategy (SMS) Garry Berryman (VP of Materials Management) led initiative Goal was to make purchasing organization a common enterprise-wide point of contact SMS intended to move the company from a site- specific, transactional mentality to a long-term focus on supplier relationships What is your view of a Vendor vs. Supplier? Berryman felt that a supplier had a vested interest in your company while a vendor merely provided goods for sale and could care less about your success 10 of 26
  11. 11. Supplier Information Link (SiL’K)Forming the teamMapping “as is”ProcessesStakeholderSurveyMapping “to be”(future)Processes 85% of time spent on non-strategic activities (reviewing inventory, data entry, etc.) 11 of 26
  12. 12. Harley Davidson’s Business Integration Model (BI)People, Processes, and Technology People Restructured from decentralized organization to a hybrid organization Processes Critical step is defining project scope Focused on managing expectations Team-led updates on project status Technology Technology decisions had to be deferred to Harley’s Architecture Integration Group (AI) 12 of 26
  13. 13. Supplier SelectionSiL’K team held a conference where theypresented to all their potential suppliersSearching for partners that could providefunctionality and could adapt to their cultureWhy didn’t Harley want a full ERP system?They just wanted to redefine materialsmanagement department, which includedpurchasing, procurement, inventory, and supplier 13 of 26
  14. 14. Supplier Selection Process October 16, 1998 RFQ (Request for quote) sent to potential software suppliers. Intent to bid had sent in by October 25, 1998 8 suppliers submitted response to RFQ and completed self evaluation checklist 5 eliminated because of architectural incompatibility, small size, ability to meet future needs, any who self rated below 90% fit 14 of 26
  15. 15. Functional Criteria (Quantitative Method) 100% 95% 90% Provider 1 Provider 2 85% Provider 3 80% 75% 1 2 3 4 5 6 7 8 9 10 1. Design and Foundation 6. Project Tracking 2. Request Definition 7. Miscellaneous 3. Documentation 8. Interfaces 4. Receiving 9. Training 5. Supply Management 10. Other 15 of 26
  16. 16. Qualitative Approach 16 of 26
  17. 17. What do YOU look for in a supplier? Price Integration Potential Reputation Which are most important? Track Record Financial Position Experience Ethics Support/Maintenance Completion Time Quality/Value Professionalism/Reliable Ambition/Passion/Dedication 17 of 26
  18. 18. Individual OpinionsBraunschweig – Functionality is key “that’s what they’re going to use day to day” We can work with personality conflicts Cost is going to be added in thereJarosz – Change management and implementation “change people are going to go through is going to be ten times more difficult than software implementation”Anding – Functionality matching with strategy “most functionality to the purchasing community and to the strategy and direction that we want to move into for the future”Pues – Organization personality and support they have behind it “people like to do business with people they like”Cotteleer – Functionality “we can deal with personality conflicts for the implementation…that is not as insurmountable as implementation risk based on functionality that doesn’t exist” 18 of 26
  19. 19. Pros and Cons Supplier 1 Supplier 2 Supplier 3Culture + Culture Match + Functionality + Existing Relationship + Change Mgmt. - CostFunctionality + Cost + Training Processes - Too FormalCost - Presentation - Functionality (Web - Training Process Enablement)Training/SupportExperience Self-Eval: 93.4% Self-Eval: 98.7% Self-Eval: 96.8% Which provider would you choose and 19 of 26
  20. 20. Alternatives Option 1 Option 2 Option 3Choose Choose ContinueSupplier 2 (Best Supplier 1 evaluatingFunctionality) (Best Support) CheckKeep SiL’K Use proven 3rd references/validityteam intact for party partnersupport and for web-training enablement Which option do you like best? Do you see any pros or cons? 20 of 26
  21. 21. Plan 2003In 1996, Harley Davidsonannounced their ambitious “Plan2003”.Their goal was to doublemanufacturing capacity to 300,000by the year 2003, coinciding withtheir 100 year anniversary.Do you think they were able toexceed their goal of 300,000motorcycles by 2003? 21 of 26
  22. 22. Harley Davidson’s ChoiceOn August 9th 1999, Oracle announced Harley Davidson’sselection of Oracle Internet Procurement, a premier Oraclee-business solution, to streamline and support itsprocurement function across all domestic manufacturingsites.The need to standardize arose as a result of the priorestablishment of essentially separate procurement systemsat each of its domestic manufacturing sites which led tonumerous separate systems, fragmentation of procurementdata, and manual process integration across sites.As a result, they will be consolidating all U.S.manufacturing production and non-production relatedprocurement across its eight domestic sites into a singleautomated procurement system, in order to streamlineprocesses, reduce costs, and consolidate demand acrossthe enterprise. 22 of 26
  23. 23. Harley Davidson’s Suppliers Garry Berryman optimized Harley’s supply chain by reducing their 3,000 maintenance, repair, and operating (MRO) suppliers to three primary ones. The direct suppliers that provide the parts that go into making motorcycles and accessories were consolidated from 1,000 to 350. Why did Harley reduce the number of suppliers when they just implemented a system to help manage this kind of purchasing? By reducing the number of suppliers, Harley could focus on developing a deeper relationship with these key suppliers by inviting them to get involved in product design and manufacturing processes. 23 of 26
  24. 24. Relationship with Suppliers From what we learned in class, what are some ways Harley Davidson could open it’s doors to suppliers and exchange data? Harley Davidson standardized their forms and procedures and required all suppliers to use EDI. As not all suppliers had the capabilities to perform EDI, Harley Davidson eventually created a web based portal called the Harley Davidson Supplier Network. Harley also utilizes bar codes and electronic trigger systems for replenishing parts so that their systems notify suppliers when they are running low on inventory. 24 of 26
  25. 25. H-D Supplier NetworkHarley Davidson picked Manugistics NetWORKScollaborative solutions to power the H-D SupplierNetwork. Manugistics also provides seamlessintegration with Oracle’s applications. Together,Manugistics and Oracle will enable Harley toleverage best-in-class supply chain optimization andenterprise resource planning (ERP). 25 of 26
  26. 26. Harley Davidson Supplier Network The Web Portal is designed to enable Harley Davidson and its suppliers to conduct transactions, ranging from placing purchase orders to invoicing, over the internet. Nearly 300 of Harleys 695 parts suppliers log on to applications through the supplier portal. Suppliers can view production forecasts, account status, and two- dimensional drawings of parts while also being able to submit shipment notices and receive inventory-replenishment alerts. The portal eliminates the expense of EDI and is proving even more reliable than EDI. Overall, the portal has allowed Harley to work with longtime suppliers to achieve lower costs, consistent quality, and improved delivery performance. 26 of 26
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