Supply Chain Management in Hitachi Automobile

This report discusses supply chain management in Hitachi Automobile, focusing on the role of information technology and the knowledge-as-possession view and knowledge-as-practice view in managing innovation. It also explores the benefits of relationship management in supply chains.

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Title: Supply Chain Management
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Contents
Part-1................................................................................................................................................2
Abstract............................................................................................................................................2
Introduction......................................................................................................................................2
Knowledge- as – Possession View and the Knowledge-as-Practice View-Managing Innovation in
Supply Chains..................................................................................................................................3
Conclusion.......................................................................................................................................7
Part-2................................................................................................................................................7
Abstract............................................................................................................................................7
Introduction......................................................................................................................................8
The Role of Information Technology (IT) in Relation to a Supply Chain......................................8
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

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Part-1
Abstract
This report summarizes the introduction to Hitachi Automotive and how the company has
been responsible for making the supply chain changes around the globe. An explanation on and
the Knowledge-as-Practice View and Knowledge- as – Possession View have been compared
and this is followed by management of innovation practices in the supply chain. The relationship
management concepts have been discussed in brief. The supportive approaches for the purpose
of knowledge creation and communication and adaptive by the community has been given. The
Individual will be able to access the knowledge and its recognition of pertinence to the user
sense-making and this is followed by a brief conclusion.
Introduction
The present evolution in digital technology is responsible for important changes around
the globe. This is bringing an upsurge in social and industrial infrastructure. Digital globalization
is a novel method of solving complex matters and offering new services that can change the new
generation. Hitachi Automotive is a global company with a robust, portfolio that encounters
artificial intelligence and operational technology and different products. Hitachi Automotive has
been addressing the social issues and provides enhanced value through its social globalization of
Infrastructure capabilities. Hitachi Automotive started in Japan and has a simple motto of
bringing the change in society.

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Knowledge-as-Possession View and the Knowledge-as-Practice View-
Managing Innovation in Supply Chains
The present agenda of debate is organizational knowledge and focuses on two different
perspectives-Knowledge as Possession view and Knowledge as Practice view. These two are
different views and are rooted in the fundamental form of pragmatist and constructivist
philosophy (Kastberg, 2014). According to the research studies, knowledge can be thought of as
a practice or object. These are two different approaches which have resulted in innumerable
methodological perspectives. The comparison between the two approaches cannot survive for too
long, but the dual form of knowledge will emerge. Research studies largely focus on the standard
specific methods and replication models that will be acknowledged as the common methods
towards progressive confrontations. However, the continuous development in the knowledge
management studies will benefit the communities (Paruchuri & Awate, 2016).
The knowledge process which is generated at an enterprise level can be viewed as a semi-
organic process which has a huge dependency over the groups and individuals. The theorists
have proposed organizational knowledge is a self-regulating process which is capable of
generating the information. This is a dynamic process and relies on productive inquiry. There is a
partial confirmation on whether the knowledge framework is applicable at the widespread
organizational level (Zhao, Lu & Wang, 2013). Organizational knowledge can be seen from
different perspectives. There are pieces of evidence present on what the different kinds of
knowledge are and how it is supported by an organization. Organizational knowledge is available
in explicit and tacit dimensions. There are different methodologies used by the organizations for
the collection of data and forming the basis of observations and experimentations. There is a
huge need for presenting the knowledge as a form of conceptualization which is systematic and

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can be viewed from the social-political view. Organizational knowledge must have strategic
dimensions. The present research studies focus on the different structural models of
organizational knowledge. This must be embedded in the enterprise routines and help in the
determination of core competencies and organization capability (Ramasamy & Thamaraiselvan,
2011).
Network Model and Coupling Model-In the methodologies and studies that have been
conducted so far, the network and coupled model has been developed in the Hitachi Automotive
and this offers approaches for integrated modeling. The details are present on the network
formulation and how does interaction happens between typical field and network model
(Reimann & Ketchen, 2017).
One of the significant aspects in a business area of Hitachi Automotive is industrial
facility and supply chains. This is the single point of operation that helps in finding distribution
efficiency. This reflects on the product quality which customer purchases. Supply chain
management is considered a chief component of efficiency and productivity (Lin, 2006). This
has been able to create the paradigm shift in the knowledge base of individual and groups.
Hitachi Automotive has adopted the modern technology systems and has continually evolved its
IT network for the purpose of enhancing output. The managers are accountable for the complete
supply chain network. Computerized supply chain management has been able to modernize and
update business systems. This is achieved through continuous tracking and visibility. The IT
systems of Hitachi Automotive allow the virtual monitoring of the complete supply chain which
includes invoicing and shipping. The vitality in technology systems has seen a steady rise in the
revenue and profits of the company (Maruta, 2014). At present, the company is undergoing

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revolutionary changes. The logistics managers are provided with flexibility levels in tracking the
entire supply chain. This, in turn, has helped in the enhancement of customer satisfaction.
A global brand such as Hitachi Automotive has successfully leveraged its logistic
management applications for bringing improvements in the Nanaka supply chain. This has
enabled virtual monitoring of distribution and storage process. This has also led to a great
amount of decrease in the operational costs, increased customer satisfaction and continuous
improvement in productivity levels and reduced errors. The supply chain manager needs to focus
on the order when in transit (Sun, 2010). This can lead to huge losses and leave a negative
remark over the brand. By the adoption of Radio technology in Nanaka Supply Chains, the
Hitachi Automotive will be able to monitor the production as well as a supply line. This is an
innovative methodology for correcting the problems. Hitachi automotive has made
advancements in the weighing technology. Outdated truck sales are being utilized in different
industrial facilities. Modern technology has utilized onboard truck scale. The operations can be
carried out easily and the scales will be able to measure the payload weight and gross weight of
the truck. This helps in the advancement of a truck that carries the maximum weight from the
loading point and saves a lot of money and time. The truck sales onboard have been adopted to
ensure the safety guaranty and provide the operators within the network to carry the weights on
lifts (Moura, Dias, Quintas & Costa, 2014).
Relationship management can be considered as the strategy within which a corporation is
able to maintain an Associate in the ongoing engagements level with the audience. This
adminsitration will occur between a business and its customers (business to client [B to C]) or
between a business and different businesses (business to business [B to B]). Relationship

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management aims to make an assoication between a corporation and patrons, rather than viewing
the link as just transactional.
The relationship the executives includes procedures to assemble customer support for a
business and its contributions, and increment brand devotion. Frequently relationship building
happens at the client level, however, it has been profitable between organizations too. A business
may procure a relationship chief to direct relationship building or it might consolidate this
capacity with another showcasing or HR job (Harvey, 2012). Building an association with
customer's yields rewards for all gatherings: Consumers who feel that an organization is
receptive to their requirements likely will keep on utilizing that organization's items and
administrations. An organization's notoriety for responsiveness and liberal post-deals association
can frequently animate new deals. Keeping up a correspondence with purchasers gives an
organization a chance to recognize potential issues before they go to an exorbitant head.
B2C organizations depend on client relationship the board (CRM) devices to fabricate
strong compatibility with their clients. CRM includes a lot of information and deals
investigation, as it looks to comprehend showcase inclines, the financial scene, and shopper
tastes. CRM likewise can incorporate promoting systems and a post-deals bolster program.
Normally, a CRM program will involve composed media, for example, deals declarations,
bulletins, and post-deal reviews; and video media correspondence like plugs, and instructional
exercises. Progressing promoting is basic to a business, as it is more exorbitant to obtain another
client than it is to keep up a present client. Promoting causes a business to check customers'
interests and needs, and create crusades to look after reliability. CRM applications extend in
degree and structure. Previously, organizations could just access CRM programming from one
framework. Today, cloud-based CRM synchronizes information to the cloud so clients can get

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data from any PC with a web association. Likewise, portable CRM applications let organizations
see client information on a cell phone or tablet anyplace on the planet.
B2B associations with investors, wholesalers, providers and different partners likewise
can profit by the association with the board. The business relationship the executive (BRM)
advances a positive and profitable connection between an organization and its colleagues. BRM
tries to construct trust, cement principles, and desires, and set up limits; it likewise can help with
question goals, contract exchanges, and cross-deal openings.
Conclusion
A non-practice-based point of view to examine and encourage information creation,
correspondence, and utilize for the most part will in general comprehensibility learning without
suitable association with its clients' needs, setting, and viewpoints in knowing circumstances,
hence, constraining the structure of steady and strong ways to deal with such learning practices
in associations. People in powerful business settings, who consistently need and utilize complex
learning can't depend on steady methodologies for their insight creation, correspondence and use
rehearses that depend entirely on what information is: on what information is required, what
learning is utilized, what one knows. Or maybe, such steady methodologies ought to likewise be
founded on learning associations with clients' sense-production rehearses, they ought to likewise
ponder how and why clients need explicit information to make implications in explicit knowing
circumstances.

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Part-2
Abstract
This report summarizes an introduction on the role of Information technology in the
supply chain management systems. The use of ERP has become the base of the IT infrastructure.
This is one of the processing tools for the Hitachi Automotive systems. Data can be grabbed and
manual activities and minimized which are related to processing the customer order and financial
inventory information. This holds the elevated level of integration which will be achieved
through the proper submission in a single numeric model. An overview has been provided on
The Role of Information Technology (IT) with context to a Supply Chain and this is followed by
a conclusion.
Introduction
Prior to 1990s, the data flow within operating areas that exists within the Hitachi
Automotive and supply chain participants has been paper based. The communication and
transaction was slower. Information has been considered as the critical competitive merchandise
resource as its value to the supply chain experts has been not understood. IT infrastructure
competencies have provided the competitive business positioning and different initiatives such as
decrease in supply chain cycle, application of restructured and cross-functional systems. Hitachi
Automotive is involved with supply chain association through IT factors. Foremost, satisfaction
of pleasing customer is best and this could be achieved in effective and efficient manner and
crucial factors of manager that can reduce inventory requirement.

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The Role of Information Technology (IT) in Relation to a Supply Chain
The enterprises such as Hitachi Automotive have been participating in supply chain
management and accept the specific role of performance. There is a collaborative belief that
different supply chain members are better off through joint effort. Power manifested within the
value chain management is regarded as a pivotal issue. There has been the shift in locus of power
through wholesalers to vendors from the past twenty years. Retailers enjoy the important position
when it comes to data access for value chain (Gligor, 2016). Retailers have started rising from
the prominence position through the help of skills and machineries. The Hitachi Automotive has
experienced how sharing of data could be used for the purpose of mutual benefits. Through the
help of comprehensive information technology, the Hitachi Automotive has shared information
through its various outlets and major suppliers. In an remote Output or Input mode-member will
be able to participate through the remote location and IT application system will be supported
through high level participants (Naway & Rahmat, 2019)
Companies which actively take part in the value chain management need to accept the
particular enactment role. The companies have a mutual feeling that with other value chain
members can be better off through the joint effort. The power can be thought of as a fundamental
issue. There has been shift of control from manufacturer to retailer. When experts speak about
the material, evidence access through the value chain, vendors will plan the essential roles. The
emergence of position from standing reputation and this can be done through the help of
advanced technologies. The progression of information system which is present in inter-
organizational way for the purpose of supply chain has benefits. Cost reduction is one of the
main advantages. This involves technology has further lead towards merchandise availability

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with various discounts and offers. This has also led to decrease in the products costs. The
enhancement of information technology has been improving through the productivity levels and
this is mainly because of pivotal inventions and technologies. This makes the manufacturing very
much simple and time consumed is less. In recent years, there has been a lot of massive growth
in the technologies and market itself. New tactics and strategies have made for alluring
customers and implementation of new principles that are under experiment for product
improvement (KyungKyu Kim & Sung Yul Ryoo, 2017).
Information technology is a pivotal organ from the view point of value chain
management. With the skill and knowledge advancement, new merchandise will be introduced
within few seconds and increased market demand. The hardware parts as well as software must
be carefully measured in the maintenance and advancement of the value chain information
system. The hardware encompasses output devices and computer input like storage media and
screen and mouse. The software comprises of whole system as well as application technologies
that are utilized for processing the transactions, decision making and management control as well
as strategic planning. Electronic commerce involves the extensive range of tools and techniques
that are used for conducting the business (Javaid & Siddiqui, 2018). This comprises of email,
electronic data interchange, shared databases, electronic publishing and optical data capture.
Exploratory Innovation, Exploitative Innovation, and Performance-
The present research on exploration and exploitative innovation is growing. The huge
focus is one the apparent differences that exist between exploration and exploitative innovation.
This also includes examining the implications for use of formal and information coordination
mechanisms. The formal includes centralization and informal includes connectedness aspects

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(Zang, 2018). The Hitachi Automotive examines how environmental aspects like
competitiveness and dynamism can have a moderate effectiveness on exploratory and
exploitative innovation. Results have indicated that centralization can have a negative influence
on exploratory innovation mediums while reinforcement can positively influence on the
exploitative innovation (Li, 2012). There is increasing connectedness within which an
organization forms an important originator of exploitative and exploratory innovation. The
conclusion discloses following the exploratory innovation is regarded as efficient in the lively
surroundings. When an organization pursues exploitative innovation, this is beneficial to the
financial performance in competitive environments. The researchers need to perform the
empirical assessment which can contribute towards greater understanding and clarity on how the
ambidextrous organizations coordinate with developments happening in exploitative and
exploratory innovation and successfully responding to the environmental conditions.
Organizational Ambidexterity revolves around exploratory and exploitative innovation. The
ability of an organization to pursue the different types of innovation simultaneously is
questionable (Ko & Liu, 2019).
The experts believe it is crucial for the company’s survival. Exploitative innovation has
been regarded as opportunistic and will maintain the product line concise. This gives the sales
and marketing team to expand the margin. Exploratory innovation will yield new value and
complete replacement of the present product set and enhancements without cannibalization. This
can be called as best portfolio management and few of the may view it as a organizational
psychosis. In order to be in the organization best interest, exploratory innovation must be
pursued. The world is filled with opportunity and marketers need to search for hunting grounds.
Leadership needs to be clearly articulated and balanced strategy must be communicated for the

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purpose of growth. This may take a longer time (Karamanos, 2014). The organization must have
cross-functional team and continue adding team members for a given project or development of a
new product line. The team members need to agree to the process. However, every product line
may not require the same intensity level. The company will benefit through the both types of
innovation. The more competition in the market exists, the high pressure on the marketers to tilt
towards exploitative innovation technique.
The concept of exploration innovation is scarce when it comes to technological
innovations. In past, exploitation-exploration has been linked to alliances, strategic changes such
as mergers and acquisitions. The empirically testing the exploitation-exploration propositions by
using the innovation data has been made evident. Both the types-exploration innovation and
exploitation innovation is considered as crucial for the purpose of performance. This indicates
the balance to be maintained between the innovation activities (Heij, 2014). However, it is
difficult to maintain. The chief ara for exploration innovation and exploitation innovation is
alliance ties and this is embedded in the diverse associations. The firm network will be regarded
as important influence on the exploitation-exploration relationship and knowledge possessed
through external factors.
This is because of the endeavor by firms to find methods for improving their
responsiveness and adaptability. The result is the improvement of the organization's intensity
through the changing of the operative technique, strategies just as innovations through the
execution of the Supply Chain Management (SCM) idea.
Organizations that select to partake in-store network the board activities acknowledge a
particular job in order. They have a shared inclination that they, alongside all other store network

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members, will be in an ideal situation in view of this synergistic exertion. The major issue here is
control. The most recent twenty years have seen the moving of intensity from the manufacturers
to merchants (Shao & Hart, 2017).
When discussing data access for the production network, retailers have a basic
assignment. They rise to the situation of conspicuousness with the assistance of advancements. It
is suitable to state that data innovation is a fundamental organ of store network the board. With
the progression of advances, new items are being presented inside part of seconds, expanding
their interest in the market. Give us a chance to think about the job of data innovation in
production network the board quickly. The product just as the equipment part should be
considered in the progression and upkeep of store network data frameworks.
Conclusion
The key and mechanical intercessions in inventory network have an enormous impact on
foreseeing the purchase and sell highlights of an organization. An organization should endeavor
to utilize the capability of the web to the most extreme dimension through clear vision, solid
arranging and specialized knowledge. This is basic for better store network the board and
furthermore for improved aggressiveness. It tends to be perceived how Internet innovation,
World Wide Web, electronic business and so on have changed the manner by which an
organization works together. These organizations must recognize the intensity of innovation to
cooperate with their colleagues. IT has propelled another type of SCM application.

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