Supply Chain Management and Lean Production Through-Out the World

1974 WordsJan 26, 20108 Pages
Supply Chain Management and Lean Production Through-out the World The system of interconnected businesses used to push a product from supplier to consumer is defined as a supply chain. Supply chain management focuses on managing the supply chain in an effort to improve the quality and time it requires to manufacture a product. To implementing supply chain management, a helpful lean production practice called Just-in-time can be used to remove any waste present along the supply chain. The marriage of lean production and supply chain management creates lean supply chain management, which provides a much leaner and more economical supply chain for the product to flow through. Much uncertainty about what supply chain management entails is…show more content…
"China, in short, has evolved economically at a time when the global automobile industry has never needed it more. China is both an attractive market for automobiles, and an attractive supplier of parts, subassemblies and, soon, completely-assembled automobiles and other vehicles. From 1977, when China lacked even the vocabulary to negotiate joint venture agreements, to today, when every major automobile manufacturer in the world is working alongside Chinese companies, China's bargaining power with and expectations of joint venture partners has increased exponentially. "Since automobile parts are integrally tied in to the automobile industry, their evolution, joint-venture participation and growing role connected to joint ventures. More importantly, most of the profits generated in today's global automobile business are being made in the parts industry, rather than final assembly. Parts companies' progress in consolidation, in R&D and emerging brand strength make them highly sought-after as joint venture partners in China and elsewhere in the world." The greater choice of suppliers in international markets makes it possible to reduce costs and improve the quality of procured materials. In relation to production, the generation of economies of scale can be realized either through the concentration of all production activities or through the construction of a number of plants according to the

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