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Global supply chain management assignment : Assignment

   

Added on  2021-02-19

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Global Supply ChainManagement

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1I) Design and implementation of supply chain strategies within the automotive sector.............1II) Organizations configure their supply chains by way of collaboration, lean principles andagility...........................................................................................................................................33. Utilisation of advanced technologies by companies within the automotive sectors tomaintain their comparative advantages.......................................................................................5CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8

INTRODUCTIONSupply chain management implies for the management of the flow pertaining to productsand services. It includes all the procedures which in turn related to the conversion of rawmaterials into finished products. This process of supply chain management consists ofstreamlining the activities. This process is highly significant which assists in customer valueenhancement and gaining competitive edge at marketplace. In other words, the supply chainmanagement includes everything from manufacturing to the development of a product to themanagement information system, which is essential for guiding the efforts (Christopher, 2016). The present project report is based on the case scenario of automotive industry whichprovides deeper insight about designs and supply chain strategies undertaken by the firms.Further, report will also shed light on the manner in which automotive firms configure theirsupply chain using collaboration, lean principles and agility. Report also entails how companiesgain competitive advantage by using advanced technology. MAIN BODYI) Design and implementation of supply chain strategies within the automotive sectorThe supply chain of the automotive industry is very complicated which always moves inresponse to the fluctuations in the global economy. A supply chain runs on a three-tier namely;strategic, tactical and operational. The strategic supply chain management is concerned with thedevelopment or formulation of decisions related to the supply chain that affects the entireorganisation. Firms operating in automotive industry design a supply chain strategy followingoverall business strategy (Fahimnia, Sarkis and Davarzani, 2015). For example, if the businessstrategy of a specific company is to be low-cost product provider, then supply chain strategyshall be such which the backs up or supports such business strategy. When developing a supplychain strategy, it is necessary for the companies that they carefully analyse their corecompetencies, internal capabilities, focus and ways of differentiating themselves from itscompetitors. In the context of business unit, manager is required to do market evaluation forachieving supply chain efficiencies (Azadi and et al., 2015). The implementation plan of a supply chain strategy must involve activities, roles &responsibility, the time frame and risk aspects. Moreover, performance metric of the firm mustbe in line with all such aspects for getting the desired level of outcome or success. 1

There are various supply chain strategies available which can be used by automotivefirms for achieving objectives include following: Increasing the inventory velocity: This strategy states that inventory needs to be sold andreplaced frequently. In other words, it means inventory turns shall be higher. This strategy runson the belief that having a sound stock and poor cash flow is an ineffective approach to supplychain management. By doing assessment, it has found that high closing stock imposes cost infront of the firm in terms of storage expenses. Carrying and maintenance cost of goods at thewarehouse results into unnecessary operational costs that hinders the profitability of the company(Silvestre, 2015).Executing lean logistics: Principles of lean manufacturing highly suits to the automotivesector with regards to supply chain management. Lean manufacturing methodology helps theautomotive firms in removing the waste that arises due to unnecessary inventory, frequentmovement of man and machine etc.Segmentation & infusing a factor of personalization within the supply chain process:In automotive sector, business units are placing emphasis on activities which in turn profitablerather than all(Govindan and et al., 2016). Accordingly, by implementing policies in relation todemand, stock, customer & supply replenishment policies automotive firms can generate highprofit margin. Implications of technology within supply chain management: Now, companiesin theautomotive industry are increasingly collaborating the advanced technology with the supplychain management for attaining higher efficiencies in their business processes. Technology suchas cloud computing, big data analytics helps companiesin evaluating and examiningthe bulkdata related to customers, suppliers, business information’setc., in a very systematic mannerFor example, Tesla, which is one of the most renowned automotive company around theworld, has adopted the strategy to infuse the technology in its supply chain management. Theprimary focus of the company to offer the maximum satisfaction to their customers by providingthe kind of products its audience wants. This objective it to achieves by way of its effectivesupply chain management. The company has utilised the technology of big data analytics fordrawing out some meaningful conclusions about its suppliers and customers. It help them increating a product which is capable of beating the competition. Also, it is one of the first2

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