Harley Davidson Motor Company Overview

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Harley-Davidson Motor Company was founded in 1903. Harley-Davidson is the only major US maker of motorcycles and the nation 's number one seller of heavyweight motorcycles. By 1920 the company has become the largest motorcycle manufacturer in the world, with productions over 28,000 motorcycles per year and dealers in 67 countries. In 1998 Harley-Davidson shipped 150,818 motorcycles, a 14 percent increase over 1997, and a step closer to its ambitious plan 2003-the vision to dramatically increase production capacity by the company’s 100th anniversary. Harley-Davidson offers 24 models of touring and custom cycles. Harley has held the largest share of the U.S. heavyweight motorcycle market since 1986. Harley Davidson competed primarily in the…show more content…
Each platform team developing new products was not fully integrating suppliers and suppliers’ systems with new product development and production activities. Harley Davidson’s operational processes and product development team did not require collocation of suppliers with their production facilities. The existing processes and systems did not provide a full integrated view of suppliers. There was a high degree of dissatisfaction with existing systems among employees and the business team was convinced that there was a mismatch between the existing systems and the new Supplier Management Strategy (SMS) proposed by the leadership team. The goal of the SMS was to ensure that Harley-Davidson is provided with the right product, at right time, with the best quality, for the lowest possible cost. Its main purpose is the need to shift the organization from a short term transaction mentality to a long-term focus on suppliers relationship. Collocation of suppliers with production facilities and their integration into Harley-Davidson’s development processes was an important part of long term relationship development, but it could not be achieved by purchasing alone. The team also believed that the big long life cycles of the products do not change frequently. As the company had huge unmet demand from customers, they were extremely concerned about any changes that might
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