Supply Chain Management | Case Study Report

Running head: SUPPLY CHAIN MANAGEMENT
Supply Chain Management
[Komatsu]
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SUPPLY CHAIN MANAGEMENT1
Executive summary
The heavy equipment manufacturers provide heavy equipment to a range of industries such as
Construction, Defence and so forth. This study also discusses a heavy equipment manufacturer
Komatsu, which is a Japanese multinational corporation. The study finds that Komatsu has its
operations in countries apart from Japan. The study identifies that Komatsu is creating values
through its supply chain management operations. The philosophy of “Win-Win” and “Same
Boat” Komatsu is into strong bonding with its suppliers. The use of technology such as
“Komtrax” has been helpful for Komatsu in accessing and communicating the demand figure to
its suppliers in real-time. The utilization of "Zero System" has been effective in reducing its
inventory wastes. The system is also letting its distributors and suppliers involved in demand and
inventory management.

SUPPLY CHAIN MANAGEMENT2
Table of Contents
Background information on Komatsu.............................................................................................3
The supply chain structure...............................................................................................................4
The sourcing materials and services; producing goods/services.....................................................6
The existing system.....................................................................................................................6
Suggesting improvement.............................................................................................................7
The distribution system....................................................................................................................8
The current system.......................................................................................................................8
Suggestions................................................................................................................................10
Demand management and inventory system.................................................................................11
Existing system..........................................................................................................................11
Recommendations......................................................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

SUPPLY CHAIN MANAGEMENT3
Background information on Komatsu
Effective management of the supply chain operations has long been holding a reputation
of being one of the keys to business sustainability. Unarguably, there is not even a single
company irrespective of the sizes that aspire a short-term existence in the target market segment
of a region or a global marketplace. The level of aspiration for the stated fact grows in size with
the market size, market reputation and the global presence of a company (Christopher, 2016).
The supply chain management was not much into the discussion a few years or decades back.
However, the discussion is constantly growing for the subject among global scholars and
industry-wide experts. This study will expectedly add more into the ongoing discussion about the
supply chain management operations. This will do by establishing a discussion in the context of
the selected organization "Komatsu”.
Komatsu is a Japanese based heavy equipment and defence vehicles manufacturer. Other
than Japan the company has its existence in other countries as well. The company is in the
Americas, Asia and Oceania, Europe and CIS, China, and the Middle East and Africa. It has the
Manufacturing Facilities, Parts Centre, Sales Business, Reman and Rebuild Centre, and Training
Centre in all these nations. The list of products includes Mining equipment, Construction
equipment, Industrial machinery, Forestry equipment and Military vehicles. Komatsu is only
after Caterpillar in terms of manufacturing Mining and Construction equipment. The buyers of
Komatsu's products are both Private and Public listed companies from the Construction, Mining,
Forestry, Defence and Industrial sectors. The company is home to approximately 60,000 people
who work for this company and represent it in diverse ways (Komatsu Ltd., 2019).
Therefore, the main purpose of this study is to discuss the supply chain management
operations at the selected manufacturer "Komatsu”. The purpose is being served in this study in