The influence of the VW Group as a parent company Philip Cox UID: 0826530 23/11/12.
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Transcript of The influence of the VW Group as a parent company Philip Cox UID: 0826530 23/11/12.
The influence of the VW Group as a parent company
Bentley Motors: Outsourcing
Philip Cox UID: 082653023/11/12
Philip Cox UID: 0826530SCM: Outsourcing
Bentley Motors
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VisionBentley Motors the definitive British luxury car company, dedicated to developing and crafting the world’s most desirable high performance cars.
Bentley Continental GT released
Philip Cox UID: 0826530SCM: Outsourcing
Inside out approach
Strategic outsourcing: sub-assemblies which offer least added-value to the customer [1]
Tactics: take advantage of VW’s economies of scale
VW Group vertically integrate (buy-out suppliers and set-up sub assembly plants)
Bentley Motors: Outsourcing StrategyAxle Component Suppliers
VW Braunschweig (Axle Sub-Assembly)
Bentley Production Line Crewe
Philip Cox UID: 0826530SCM: Outsourcing
Luxury customer features and personalisation
Seen by VW Group as a centre of excellence for interior quality and craftsmanship
Specialising in bespoke, hand-crafted wood and leather interiors
Largest producer of 12-cylinder powertrains [2]
Variable displacement / Cylinder de-activation implementation
Bentley Motors: Core Competences
Philip Cox UID: 0826530SCM: Outsourcing
High AddedValue
Low AddedValue
Least UsedMaterial
Most UsedMaterial
Familiarity with Material
Proc
ess
Make vs. Buy Decision Matrix [2]
Continental GT
Interior Trim
Axle Assembly
Infotainment
Buy-in
Depends on strategic significance In-house
Depends on investment
Body Structures
Philip Cox UID: 0826530SCM: Outsourcing
Risks to Bentley
Leading in manufacturing innovation offers greater competitive advantage as this is harder for competitors to copy than purely technical or product innovation [3]
Manufacturing Expertise
Brand Reputation
Manufacturing Flexibility
Socio-economic
Implications
Attractiveness of Account
Philip Cox UID: 0826530SCM: Outsourcing
Focusing on business core competences of interior quality and craftsmanship Less likelihood of having Bentley developed platforms
Outsourcing of vehicle assembly with product range extended? Brand values built around having Crewe as the home of
Bentley’s manufacturing
Follow VW’s move towards a modular platform strategy, and higher levels of global sourcing of major components VW are looking to implement a C3 Sourcing Strategy
(Cost Competitive Countries) [6]
Recommendations for the future….
Philip Cox UID: 0826530SCM: Outsourcing
References[1] Sharpe, D; 2012; ES4C9 Supply Chain Management- Lecture 6: Outsourcing. University of Warwick
[2] Finlay, S; 2012. Big Engine Builder Bentley Thinks Smaller. Wards Auto Available at: http://wardsauto.com/retail/big-engine-builder-bentley-thinks-smaller [Accessed: 20/11/12]
[3] Quinn, J and Hilmer, F; Strategic Outsourcing (Sloan Management Review, 1994)
[4] Lifestyle Lounge; 2012. Pros and Cons of Outsourcing. Available at: http://lifestyle.iloveindia.com/lounge/pros-and-cons-of-outsourcing-10665.html [Accessed: 20/11/12]
[5] Bowser, C; ES4C9 Supply Chain Management - Lecture 7: Supplier Selection. University of Warwick
[6] Day, J; 2009. Supplier Business analyzes VW production / purchasing plans. Automotive Electronic News. Available at: http://johndayautomotivelectronics.com/?p=1207 [Accessed: 20/11/12]
ResourcesWan, M; 2011. Bentley. Autozine. Available at: http://www.autozine.org/Manufacturer/UK/Bentley.html [Accessed: 18/11/12]
Investopedia; 2009. Definition of Core Competencies. Available at: http://www.investopedia.com/terms/c/core_competencies.asp#axzz2CtReTS7D [Accessed 20/11/12]
Scott, S. Bentley Motors - Chassis Engineering Axle Team Senior Engineer
Brightmore, B. Bentley Motors - Chassis Engineering Logistics Co-ordinator
Philip Cox UID: 0826530SCM: Outsourcing
Thank you for listening.Are there any questions?
Philip Cox UID: 0826530SCM: Outsourcing
1/3 of the volume of the Continental model line
Far less out sourcing of major sub-assemblies
Bentley designed and developed platform and body structure
Axle assemblies and bodies are manufactured on-site at Crewe
6.75L V8 has been a long standing Bentley development
Bentley MulsanneBACK-UP
Philip Cox UID: 0826530SCM: Outsourcing
Bentley Continental Access to VW’s D1-platform
Typical of automotive industry with outsourcing of major subassemblies Body structure (VW Zwichau, Mosel) Front and Rear axle assemblies (VW
Braunschweig, Glauchau) Powertrain (V8T+ models)
Vertical integration with VW owning many of their sub-assemblers Improved collaboration and volume
planning
Platform shared with VW Phaeton, with Bentley’s volumes originally making up excess capacity
BACK-UP
Philip Cox UID: 0826530SCM: Outsourcing
High AddedValue
Low AddedValue
Least UsedMaterial
Most UsedMaterial
Familiarity with Material
Proc
ess
Make vs. Buy Decision Matrix [2]
Continental GT
Mulsanne
Interior Trim
Interior Trim
Axle Assembly Axle Assembly
Infotainment
Infotainment
BACK-UP
Philip Cox UID: 0826530SCM: Outsourcing
Steele and Court (1996 p. 69)
Nurture clientExpand businessSeek new opportunities
Cosset clientDefend rigorouslyHigh service &response
Give low attentionLow interestLose without pain
Drive premium priceSeek short-term advantageRisk losing customer
Development Core
Nuisance Exploitable
Attractiveness of account
Relative value ofbusiness or account
Attractiveness of Bentley’s Account [5]BACK-UP