BMW Supply Chain Management and Logistics Systems

This presentation focuses on the supply chain management and logistics systems of BMW, analyzing key challenges and issues faced by the organization. Recommendations are provided to efficiently eliminate these challenges.

GLOBAL LOGISTICS AND
SUPPLY CHAIN MANAGEMENT

INTRODUCTION
Supply chain management and logistics system is essential part of
organisation. In this context, the following presentation will focus on supply
chain management and logistics systems of BMW and analyse the key
challenges and issues faced by the organisation. Eventually,
recommendations will be provided, in order to avoid or eliminate the
challenges efficiently.

BMW AND SUPPLY CHAIN
MANAGEMENT

CONT..
•Bayerische Motoren Werke or BMW is renowned luxury car and motor cycles
manufacturing company incorporating its business activities nearly all over the
world. Its headquarter is located in Munich, Germany and the organisation was
founded in 1916.
•Suppliers plays, a prominent role and impact on sustainable performance and
development of organisation. BMW works with around 13000 suppliers in 70
countries

CONT..
•According to Stadtler, 2015 supply chain management system is maintaining
the relationship and inflow and outflow of goods and services within
producers and consumers
•BMW global supplier network creates a major contribution in creation of
value, improving the quality and innovation and thus, led the company
towards success and development.

THEORETICAL CONCEPT
Authors have made in-depth research in the field of supply chain management and
logistics systems used by the organisation. They have proposed and developed few
theories that justifies the process of supply chain management system. These theories
are universally acceptable and nearly all the organisation have implemented in their
supply chain management system including BMW.

CONT.
According to Brandon‐Jones and et.al.,
2014 Resource Based View theory of
supply chain management states that the
management of organisation needs to use
those resources that helps in increasing
the sustainability in the supply chain
management system and aid in generating
competitive advantage to the organisation.

CONT.
•Vettorato and Hsuan, 2015 said that Transactional Cost Economics theory of
supply chain management proposed that the management after performing
transactional cost analysis, selects the most economic supply and logistics
structure.
•The decision whether to perform a transaction internally or externally
depends on the difficulties and costs associated with the transaction.

KEY ISSUES AND CHALLENGES FACED BY
BMW IN SUPPLY CHAIN MANAGEMENT
•Supply chain management helps the organisation in gaining competitive
advantages by maximising customer satisfaction and brand reputation.
•In 2017, BMW suffered from production stoppage of 3-Series Sedan in
Germany, China and South Africa due to Bosch failure in supply the
necessary steering gears.

CONT..
•Globalisation: The organisation seeks for different countries which offers
lower labour costs, low or flexible tax policies, low cost of transport. In order
to do that, the company complicates the supply chain and logistics process.
•Fast Changing Market: Customers taste and preferences are changing
rapidly. Due to short life cycle of product, BMW is under pressure to
innovate the new products and keep the manufacturing costs low.

CONT..
Quality and Compliance: BMW
faced the challenge of maintaining
its quality in order to ensure to meet
national and international regulatory
standards

SOLUTIONS TO OVERCOME
CHALLENGES
From the above analysis, it was identified that BMW faced various
challenges in supply chain management system. By using appropriate data
management and integration system, the management of BMW will be able
to overcome the key issues effectively and efficiently. Data management and
integration is the system that address supply chain management challenges at
the most basic level of the value chain and in every activity

CONCLUSION
From the study, it can be understood that supply chain management plays
crucial and important role in growth and development of organisation. In this
context, the following study discuss the supply chain and logistics
management of BMW. The theoretical concepts and theories to supply chain
management has been assessed in this study. The key challenges faced by
BMW and possible solution has been identified in the study.

REFERENCES
Brandon‐Jones, E., and et.al., 2014. A contingent resource‐based perspective of supply chain resilience and
robustness. Journal of Supply Chain Management, 50(3), pp.55-73.
Olbert, H., Protopappa‐Sieke, M. and Thonemann, U.W., 2016. Analyzing the Effect of Express Orders on
Supply Chain Costs and Delivery Times. Production and Operations Management, 25(12), pp.2035-2050.
Stadtler, H., 2015. Supply chain management: An overview. In Supply chain management and advanced
planning (pp. 3-28). Springer, Berlin, Heidelberg.
Vettorato, G. and Hsuan, J., 2015. Balancing Technologies for Reverse Supply Chain with Modularity as
Strategy for Competitiveness. In 1st International Competitiveness Management Conference.
Online
Supplier Management. 2018. [Online]. Available through:<https://www.bmwgroup.com
/en/responsibility/supply-chain-management.html>
Uhlenberg, A., 2017. How to use the 7Ps Marketing Mix?. [Online]. Available through:<https://
www.liaison.com/blog/2017/09/18/key-issues-supply-chain-management-overcome/>

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