presentation for Study on the Integration of Supply Chain Management in Automobile Business”
Transcript of presentation for Study on the Integration of Supply Chain Management in Automobile Business”
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Study on the Integration of Supply Chain
Management in Automobile Business
V.T.R VIJAYAKUMAR Ph. DProfessor & Head
Dept. of Management Studies
St. Xaviers Catholic College of Eng.
Chunkankadai, Nagercoil-03
G.M. RekhaFull Time Research Scholar
Anna University, Chennai
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Supply Chain ManagementSCM is a strategic concept that involves
understanding and managing the sequence of activities
from the supplier to the customer that add value to theproduct supply pipe line.
Prof. Lisnu Elram & Martha Cooper
Enhanced customer value at least
cost is the objective of SCM.
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Integration An integrated planning to ensure availability
of right finished goods at desired point in
time for delivery to the customer.
The Delivery of desired car to the customer
on time.
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Demand Forecasting
Make or Buy Decisions
List of parts and
Specification
Selection of Vendors
Negotiation and Purchasing
Inbound Logistics
Quality Assurance
Order Processing
Receiving and Materials
Handling
Supply Chain Flow
Warehousing / Distribution
Planning In-bound and Out-
bound Logistics
Maintenance of Records
Customer Service
Supply Chain Partnership
Financial Planning / Credit
Storage
Inventory Control
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Cost
Assets
Reliability
Flexibility
Supply Chain Measures
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Supply Chain Measures
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Automobile BusinessPlayers in the Indian Automotive Industry
The important domestic automobile manufacturers in India
are Maruti Suzuki, Hyundai, Toyota, Honda, Volkswagen, General
Motors, Ford, TATA Motors, Mahindra & Mahindra, Renault Nissan,
Volvo, Ashok Leyland, Mercedes Benz etc..
The Automotive industry is one of the largest industries in theUnited States, China and India
India should experience the most rapid rate of growth, followedby China. Indias forecast market share of 13.2% in 2011.
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Volkswagen
Mobility - Made in India
Consumer Electronic Sales .
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Volkswagen
Volkswagen Operational practices show a great example
of the innovations the German automobile
manufacturers performance.
Volkswagen uses their economies of scale by working with
their parts suppliers to order raw materials in large
quantities.
In India they have a plant at Maharashtra and Pune.
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Volkswagen
Purchasing
Example Volkswagen Supply chain
Parts Supplier
Parts Supplier
Parts Supplier
Volkswagen
Trading
Raw Materials
Mill
Parts Supplier
Parts Supplier
Parts Supplier
Volkswagen
Assembly Plant
Volkswagen
Assembly Plant
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INTEGRATION OF SUPPLY CHAIN MANAGEMENTin AUTOMOBLE BUSINESSSupport Activities
Firm infra structure, HRM, Technology Development
Purchasing
Material Services Information / Funds / Knowledge
SuppliersIn-boundLogistics Operations
OutboundLogistics
Sales andDistribution
CustomerService Customers
Primary Activities
Materials / SupplyManagement Physical Distribution /Channel Management
Total Supply Chain / Total Logistics Management
The Extended Value Chain
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ADVANTAGE OF THE SUPPLY CHAINMANAGEMENT IN AUTOMOBILE
BUSINESS
Achieving high level of satisfaction.
Reducing cost, that means achieving optimum life cycle
cost. This involves maximizing the wastage duringreaching the customer
Getting continuous feed back from the customer
Selection of best supplier that will help to reduce the cost
Reducing the cost to customer through having Effective
Distribution System
Risk Minimization
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Automobile BusinessManagement systems
Important Business Management
Team Management System
Four Supporting System
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Important BusinessManagement Core Products
Core Business
Core Cooperation partners
Augmented product should better than competitors
products and should appeal to the customers and win
them. For cars luxury and performance should be
combined to give value to customers
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Team Management System
Build Purchasing
Team Technical Support
Marketing Team
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Four Supporting Systems
IT information system
R&D systemManufacturing System
Quality Management System
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Compare wheels, lights and bodydesign
Skoda Laura Ambassador
Innovation at Work No Innovation
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CONCLUSION
Innovative Changes like ABS, Power Steering, Power
Windows, Air bags, Collapsible Steering , Alloy Wheels, Direct
Fuel Injection, Sensor for Reversing and Central Locking etc. are
the major innovations done with the help of effective Supply
Chain Management to produce new models with in very short
time periods in India and abroad. This goes for the integration of
auto component manufacturers and the car and truck producers.
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