Harley Davidson Supply Chain Management

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MANAGING THE SUPPLY CHAIH SHASHANK BHOJE COVENTRY UNIVERSITY TABLE OF CONTENTS 1. INTRODUCTION 3 2. SUMMARY 4 3. MAJOR CHALLENGES 6 4. STEPS TAKEN TO ENCOUNTER CHALLENGES 8 5. CONCLUSION 15 6. REFERENCE 16 INTRODUCTION…show more content…
The company went public because there was very little chance of recovering. The Fig. 1 shows how quality of product can ruin the business. Fig. 1 Consequences of poor quality *1 COMPETITION Competition is one of society’s most powerful forces for making things better in many fields of human endeavour. Harley Davidson was once dominating the American motorcycle industry in fact it had a monopoly. Due to Harley manufactured heavyweight motorcycles it had a niche market with very little competition. But due to quality problems the Japanese motorcycle manufacturers gained advantage. And also Japanese had newer technology and product to offer which gave them edge over Harley. SCHEDULING AND INVENTORY MANAGEMENT A company with large amounts of buffer stocks shows lack of improper management. Emphasis on scheduling for component or product manufacturing was not given by Harley Davidson. This led to over stocking of its Inventory of both finished and unfinished goods. Managing of the supply chain was not given the priority. Because of this there was around $ 24 million worth of Inventory in their warehouse with only 4.5 inventory turns per year. This bolted up cash and reduced productivity. With over stocking arise quality problems, lower profits, higher holding cost, security cost, stock may become
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