presentation for study on the integration of supply chain management in automobile business”

8/2/2019 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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presentation for study on the integration of supply chain management in automobile business”

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