Study on the Integration of Supply Chain Management in Automobile Business

G.M. Rekha
Full Time Research Scholar Anna University, Chennai

V.T.R VIJAYAKUMAR Ph. D

Professor & Head Dept. of Management Studies St. Xaviers Catholic College of Eng. Chunkankadai, Nagercoil-03

Supply Chain Management

SCM is a strategic concept that involves understanding and managing the sequence of activities from the supplier to the customer that add value to the

product supply pipe line.

Prof. Lisnu Elram & Martha Cooper

Enhanced customer value at least cost is the objective of SCM.

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.

Supply Chain Flow

Demand Forecasting Make or Buy Decisions List of parts and Specification Selection of Vendors Warehousing / Distribution Planning In-bound and Outbound Logistics Maintenance of Records Customer Service

Negotiation and Purchasing

Inbound Logistics Quality Assurance

Supply Chain Partnership

Financial Planning / Credit Storage

Order Processing
Receiving and Materials Handling

Inventory Control

Supply Chain Measures

Cost Assets Reliability Flexibility

Supply Chain Measures

Automobile Business
Players 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 the United States, China and India India should experience the most rapid rate of growth, followed by China. Indias forecast market share of 13.2% in 2011.

Volkswagen
Mobility - Made in India Consumer Electronic Sales .

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.

Example Volkswagen Supply chain

Parts Supplier Volkswagen Purchasing Volkswagen Trading

Parts Supplier

Parts Supplier

Parts Supplier

Volkswagen Assembly Plant

Raw Materials Mill

Parts Supplier
Volkswagen Assembly Plant

Parts Supplier

INTEGRATION OF SUPPLY CHAIN MANAGEMENT in AUTOMOBLE BUSINESS

Support Activities Firm infra structure, HRM, Technology Development Purchasing

Material Services

Information / Funds / Knowledge

In-bound Suppliers Logistics

Operations

Outbound Logistics

Sales and Distribution

Customer Customers Service

Primary Activities Materials / Supply Management Physical Distribution / Channel Management

Total Supply Chain / Total Logistics Management

The Extended Value Chain

ADVANTAGE OF THE SUPPLY CHAIN MANAGEMENT IN AUTOMOBILE BUSINESS

Achieving high level of satisfaction. Reducing cost, that means achieving optimum life cycle cost. This involves maximizing the wastage during reaching 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

Automobile Business Management systems

Important Business Management

Team Management System

Four Supporting System

Important Business Management

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

Team Management System

Build Purchasing
Team Technical Support Marketing Team

Four Supporting Systems

IT information system R&D system Manufacturing System Quality Management System

Compare wheels, lights and body design

Innovation at Work

No Innovation

Skoda Laura

Ambassador

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.