C04324 Strategic Supply Chain Management

C04324 Strategic Supply Chain Management

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C04324 Strategic Supply Chain Management

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C04324 Strategic Supply Chain Management

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Course Code: C04324
University: University Of Technology Sydney

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Country: Australia

Discussing Automotive Industry, The idea is to design a simple model of a supply chain and to present your idea aided with a power (Mandatory) also a report must be submitted further explaining and illustrating your ideas.

Supply chain in automotive industry plays one of the most crucial roles in the success of the industry. Supply Chains in the following industry are extensive and include elements of production that are based on different kind of forecasting techniques (Christopher and Martin). The amount of money invested in the industry is huge. The key trend of the automotive industry is the increase of the variant numbers on individual models and the standardization of different components in the supply chain.
Supply Chain Elements in the Industry
There are lots of different supply chain elements in the automotive industry. However, a simple automotive supply chain may contain the likes of the Inbound Logistics, Manufacturing Facility, Outbound Logistics and different kinds of supply chain strategies.
Inbound Logistics
Dedicating time and efforts to inbound logistics sometimes can take a back seat to outbound logistics efforts. Controlling the inbound transportation network and the evaluation of the different alternate network designs can reduce costs, improve service times and minimize the use of asset. Controlling the inbound transportation network and on the other hand evaluating the alternate network designs can help reduce the costs, improve the service times and minimize the use of the assets (Filbeck and Greg). The manufacturers of the automobiles and suppliers have introduced supply chain design technology to enable the creation of the proper inbound logistical chains of the organization. These include the likes of;

Facility Selection-The selection of the location of manufacturing facility, selection of the modeling technology. It also helps to identify the tradeoffs across all the logistics chain of the organization.
Product-Flow-Path Optimization- The process of moving products from the supply and then eventually distributing the products to the stores or the end customers can be said to be as the product flow path information (Günther, Matthias and Niels).
Consolidation center selection and analysis- The companies having a larger number of suppliers generally produce products in a relatively small area (Land and Anna). Such kind of companies may be used to combine large shipments and reduced transport costs.
Transportation route optimization-The route transport optimization is often used by large companies supplying and manufacturing automobiles to ensure the reduction of the transportation costs.

Manufacturing Facility
The location and the size of the manufacturing unit is another element in the supply chain of the automobile industry and thus the demand for the automobiles from time to time and places to places are one of the important considerations. The facility locations and inventory levels depends on;

Production Footprint-The modeling of the production footprint and the analysis of the different situations helps the company to adjust the existing capacity with the investment required to add additional production. Sometimes this can indicate in moving a total manufacturing unit from one place to another or in other cases it may involve moving just an inventory or some departments from one place to the other.
Inventory Organization- Inventory is termed as the insurance against the variability in the supply chain of the automobile industries. The biggest source of variability is demand that can be highly unpredictable and highly susceptible. The inventory optimization requires the companies to fulfill the end to end stocking levels and appropriate ordering behavior after a thorough analysis of the different demand patterns.
Network Optimization-The network optimization is often considered as a starting point of the different automobile companies that explores the supply chain design and can improve the sustainability, cost and the service that often leads to the supply chain of the savings or 10 percent more.

Manufacturing and Distribution
Manufacturing and Distribution are two of the most key elements in the supply chain of the automobile industry. Most of the manufacturers use Push and Pull strategy as their focus in the manufacturing unit. On the other hand the distribution facilities generally depend on three key principles. This includes;

Complete freedom to dealers in making decisions
Joint Development with Dealers
Competition as the key to improvement

Outbound Logistics
The unending combinations of different modes, channels, routes, automotive manufacturers have mainly turned into supply chain network design to simplify the outbound logistics decision making. This includes;

Evaluating New Modes- The use of new methods, new models of change, using new technologies can help to get an idea of the actual mode of the delivery or the pickup routes (Govindan et al.). It also helps to utilize the best way to utilize the assets and evaluate the different kinds of work schedules an even perform Greenfield analysis of the company.
Backhaul Optimization-The better efficient is the company, better the designing of the different kinds of the transportation networks (Greiner and Martin). Many of the manufacturers are utilizing the backhaul optimization to utilize the most of the time of the driver, assets and the fuel.
Consideration of new delivery options- The management of the automobile manufacturing companies nowadays are considering or even continuing to ship their own products. The domestic car manufacturers can analyze the costs and the service times of utilizing the outbound logistics network of the different suppliers to help them delivers directly instead of first shipping them to some other countries (Günther, Matthias and Niels).

Supplier Relations
Suppliers form an important part of the supply chain of the automobile industry. The management of the companies tries to develop a healthy and proper relationship with the suppliers to build a supplier dealer hierarchy that could help in the effectiveness of the supply chain. The hierarchy can be maintained by means of;

Mutual understanding and collaboration
Sharing of Information
Compatible capabilities
Control System

The following assignment deals with the supply chain in an Automobile industry. A simple yet detailed supply chain design starting with inbound logistics and ending in outbound logistics and supplier relations have been provided in the following assignment. The analysis of the different elements provided is useful to get a clear idea about supply chain and the elements involved. The features of the elements that have been provided here also add to the compactness of the project.
Christopher, Martin. Logistics & supply chain management. Pearson UK, 2016.
Filbeck, Greg, et al. “Supply chain finance and financial contagion from disruptions: Evidence from the automobile industry.” International Journal of Physical Distribution & Logistics Management 46.4 (2016): 414-438.
Govindan, Kannan, Hamed Soleimani, and Devika Kannan. “Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future.” European Journal of Operational Research 240.3 (2015): 603-626.
Greiner, Martin. Automotive Supply Chain Management in the Internet of Things. GRIN Verlag, 2015.
Günther, H-O., Matthias Kannegiesser, and Niels Autenrieb. “The role of electric vehicles for supply chain sustainability in the automotive industry.” Journal of Cleaner Production 90 (2015): 220-233.
Land, Anna, et al. “Sustainable supply chain management practices and dynamic capabilities in the automotive industry.” Academy of Management Proceedings. Vol. 2015. No. 1. Briarcliff Manor, NY 10510: Academy of Management, 2015.
Luthra, Sunil, Dixit Garg, and Abid Haleem. “Critical success factors of green supply chain management for achieving sustainability in Indian automobile industry.” Production Planning & Control 26.5 (2015): 339-362.
Luthra, Sunil, Dixit Garg, and Abid Haleem. “The impacts of critical success factors for implementing green supply chain management towards sustainability: an empirical investigation of Indian automobile industry.” Journal of Cleaner Production121 (2016): 142-158.
Thomé, Antonio Márcio T., et al. “A multi-tier study on supply chain flexibility in the automotive industry.” International Journal of Production Economics 158 (2014): 91-105.
Zimmer, Konrad, et al. “Assessing social risks of global supply chains: a quantitative analytical approach and its application to supplier selection in the German automotive industry.” Journal of Cleaner Production 149 (2017): 96-109.

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