Automotive supply chain management

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Briefing paper 5

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Automotive supply chain management

  1. 1. Vehicle Manufacturer Supply Chain Management This briefing paper provides a number of links to information about OEM supply chain management and support. It concludes with a summary of key supply chain issues. 1. OEMs Ford Supply Chain Sustainability Group: http://corporate.ford.com/our-company/governance- hub/supply-chain-sustainability-group Ford – Creating a sustainable supply chain: http://corporate.ford.com/microsites/sustainability- report-2011-12/supply-sustainable#abf Toyota (Toyota, Lexus, plus stakes in range of other brands including Daihatsu) supplier support: http://www.toyota.com.au/toyota/sustainability/cms/download/Supplier_Support_41-45.pdf Renault-Nissan Alliance (Renault, Nissan, Infiniti, Dacia, Datsun, Venucia, Lada) : http://www.nissan- global.com/EN/DOCUMENT/PDF/SR/Renault_Nissan_Purchasing_Way_English.pdf Aston Martin, Jaguar Land rover & Toyota shared supply chain solution : http://www.achilles.co.uk/en/news/1886-global-car-manufacturers-launch-shared-supply-chain- solution BMW Group (BMW, Roll-Royce, Mini) Supplier Network: http://www.bmwgroup.com/e/0_0_www_bmwgroup_com/verantwortung/lieferkette/ueberblick.h tml Mitsubishi Logistics Europe: http://www.mitsubishi- logistics.de/?Service_%26amp%3B_Solution:Logistics%26nbsp%3B%26amp%3B_Projects:Supply_Ch ains Fiat Chrysler Automobiles (Fiat, Chrysler, Ferrari, Maserati, Alfa Romeo, Arbarth, Lancia, Dodge, Jeep, Fiat Professional) : http://www.automotivesupplychain.org/features/91/77/Back-from-the- Abyss/ Volkswagen Group (Volkswagen, Audi, Skoda, Seat, Bentley, Bugatti, Lamborghini, Porsche, Suzuki, Volkswagen Commercial): http://www.csr-supplychain.org/supply-chain-programme/volkswagen- sustainability-in-supplier-relations Peugeot Citroën : http://b2b.psa-peugeot-citroen.com Hyundai-Kia : http://www.ft.com/cms/s/0/dcd9f21e-bd73-11e2-890a- 00144feab7de.html#axzz3Av5Gv1rt Honda : http://www.opentext.com/file_source/OpenText/en_US/PDF/01126-SS-Honda-EN- FINAL.pdf . http://www.scribd.com/doc/29977840/Supply-Chain-Management-Principles-and- Practices-at-Honda Mazda : http://www.mazda.com/csr/csr_vision/distributor/ General Motors (Chevrolet, Buick, Cadillac, Opel, Vauxhall and brands in China and Korea): http://www.gmsustainability.com/fancybox/issues_supplyChain.html
  2. 2. Daimler (Mercedes, Smart and an extensive portfolio of commercial brands): http://sustainability.daimler.com/reports/daimler/annual/2011/nb/English/3080/supply-chain- management.html 2. Supply Chain Management Lean and resilient supply chain management: http://www.automotivesupplychain.org/features/212/79/The-supply-chain-balancing-act/ A smarter automotive supply chain: http://www- 07.ibm.com/sg/manufacturing/pdf/manufacturing/Auto-industry.pdf Automotive Supply Chain Magazine: http://www.automotivesupplychain.org/the-magazine/ 3. Summary of Key Issues  The industry is seeking a lean and resilient supply chain model that reconciles the business benefits of JIT and minimum stock inventories to the realities of variations in demand, logistics and the impact of unpredictable catastrophic events;  The OEM and supply chain mix is best seen as a ‘collective of companies managing a portfolio of capabilities’ where there is open communications and visibility, common strategic planning and goals, leading to mutual benefits for all the companies involved in delivering a quality and cost effective product to the customer;  Local sourcing has a number of advantages: minimal logistics enabling agile JIT objectives; efficient supplier communications (same language, same culture, same economic system); effective group collaboration with shared information about lead times, demand, order cycles etc through the entire tier system;  Where major new markets are opening up (China, India, Brazil), existing domestic supply chain companies are following the OEMs in establishing overseas manufacturing facilities. This is only considered where the potential market justifies the investment;  The focus of the supply chain company needs to be on the value to the intended consumer of the OEM product, not the OEM company they are supplying.

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