Supply Chain Management for BMW Motors

qwertyuiopasdfghjklzxcvbnmqwe
rtyuiopasdfghjklzxcvbnmqwertyu
iopasdfghjklzxcvbnmqwertyuiopa
sdfghjklzxcvbnmqwertyuiopasdfg
hjklzxcvbnmqwertyuiopasdfghjkl
zxcvbnmqwertyuiopasdfghjklzxcv
bnmqwertyuiopasdfghjklzxcvbnm
qwertyuiopasdfghjklzxcvbnmqwe
rtyuiopasdfghjklzxcvbnmqwertyu
iopasdfghjklzxcvbnmqwertyuiopa
sdfghjklzxcvbnmqwertyuiopasdfg
hjklzxcvbnmqwertyuiopasdfghjkl
zxcvbnmqwertyuiopasdfghjklzxcv
bnmqwertyuiopasdfghjklzxcvbnm
qwertyuiopasdfghjklzxcvbnmqwe
rtyuiopasdfghjklzxcvbnmrtyuiopa
Supply chain management
BMW motors

BMW-SCM 1
Executive summary
International business becomes easier and has a rapid transformation in the recent short period of
time. Globalization, SCM and the AI, all are reshaping the pattern of international trade flows.
These restructuring is contribute to business growth and the country’s economic growth as well.
Better supply and allocation of resources and more freedom of choice for consumer lead to
expanding the business internationally and it is becoming more essential to manage to supply
chain across internationally.
BMW is a German based multinational organization which is founded in 1916. The organization
becomes the world’s 12th largest motor vehicle producer with more than 227903 produced
vehicles. The company operates in Germany China Brazil, South Africa, India, and several other
countries and has the largest supply chain across the world. This assessment will analyze the
Overall Logistics supply chain and management of the BMW motors. This report will also
include supply, operations, integration, information and sustainability analyses and discussion of
the improvement program.

BMW-SCM 2
Vision, mission and strategic goals
BMW is the leading brand the company has its vision mission and strategic goals:
Vision
• BMW’s vision is to be the number one
• Inspiring stakeholders and customers on the move
• Shaping tomorrow’s individual premium mobility (BMW group, 2019)
Mission
• Providing the most unique services and other safety features
• Offering customer satisfaction and best experience to them
• Being the most aspirational brand
• Focus on future high technologies (BMW group, 2019)
Strategic approach
Utilization of unique technologies and digitalization
The company’s strategy is to expanding technologies in the coming years to lead the success and
set new standards in the competitive market. Company’s strategic approach contains:
• Better brand and design
• Technologies and digitalization
• Customer satisfaction
• Profitability (BMW , 2019)

BMW-SCM 3
Supply analysis
There is a lot unique product category of BMW cars and its procurement department has to
manage such as BMW, Mini, BMW I, BMW M, Rolls-Royce Motor Cars and BMW Motors
(BMW group, 2019). The procurement department of BMW manages procurement process to
consistency in the procurement operations; they maintain a centralized and integrated
department. They focus on the relationship with supplier as the organization has around 12000 in
70 countries (BMW , 2019) which include suppliers including Brembo, BorgWarner,
Elringkiinger, ThyssenKrupp, Bridgestone, and Mahle (Auto news, 2018). To manufacture The
Company depends on more than 100 auto part suppliers across the world and its more than 40%
suppliers based on Germany or subsidiaries of German located companies and 35% are from
Eastern and Western Europium countries (Karkaria, 2018). The company has huge supply
market including US, South Africa, Pakistan, India, China, Brazil, France Iraq, and many others.
BMW’s supply market mostly is the luxury cars, however, supply market mostly mini and Rolls
Royce. In the 2018 company’s sales around 2490644 which include Rolls Royce and MINI
delivered most around the world (Bekkar, 2018). There are many supply-related challenges for
the company such as production delays and supply delays as there is a case in 2017, where Bosch
provide steering gears to BMW when Bosch unable to meet the demand of BMW for the
steering gears it wreaked havoc on both the organization (Scheer, 2017). Also, there are many
opportunities for BMW as there are increasing the number of automotive tools suppliers in
Germany such as Denso Corp and Magna international INC and many others.
Operation analysis
Company sales market mostly luxury cars; however, the company also focuses on fewer budget
cars. The company sales from MINI and Rolls Royce is around 2490664 (+1.1%) which is from