Trends In Automotive Industry Implication On Supply Chain Management

The American automotive industry has been under a lot of pressure over recent years due to increased concern for the environment and increased global competition. An environmental scan on the American automotive industry shows that the global competition is a great cause for concern, new technology is providing an edge, emissions and laws regulating them are as tight as ever, and consumer opinion is reflecting concern for this.

The Ford Motor Company’s Supply Chain Management ABSTRACT The influx of foreign automobiles that flood the United States market is higher than ever before and American companies are struggling to adapt to this decrease in market share. Ford is one of the organizations that has restructured its supply chain strategy to better integrate suppliers into their system reducing cost and

Introduction Automobile usage has increased in America and elsewhere in the world. In a research done by Sutherland, J., et al. (2004) “The US has a contributed to 200 million passengers in cars and light truck over the past few years. Further in 1990, studies showed that US cars increased six times faster than human population. The leaders in the automotive industry must adopt some key elements to ensure success in this fast-moving environment. They must invest in knowing their markets, building brands, adapting product strategies and taking long-term view on their goals and objectives. This paper outlines some of the key factors which should be considered. Environmental factors automotive designers and engineers have always said the main threats in the American Automotive industry are the environmental factors such as fuel economy and the clean air regulations. Automotive Emission posed different problems than manufacturing discharges such as coal smoke. Increased fossil-fuel emission has resulted from the million car increase. Irritation smog, which is comprised of carbon monoxide, hydrocarbons, sulfur oxide and other various chemical mixtures are cited in major cities such as Los Angeles. These auto emissions are also said to cause headaches, visual pollutions, contribute to lung cancers and other respiratory disease. In the end, the engineers have designed cars that are better environmental performers, cost effective and fuel efficient to reduce the environmental

Reorders are placed at the time of review (T), and the safety stock that must be reordered is:

Ford supply chain strategy case study is an in-depth analysis report based on the inside and outside factors affecting the organization. Our analysis have included two alternatives and a few other attributes of the Ford which focuses on production on various countries and how the factor supply chain is contributing to the company policies. Moreover the report will focus on the current objective and suggest new ideology of Ford with global environment changes in mind.

Given the current economic climate, I think the automotive industry is going to be faced with a multitude of economic challenges in the next five years. As an oligopoly market, the auto industry is highly dependent on strategic decision-making, and the demand for dynamic innovation and supply at decreased-cost levels. Competition, possibilities of turning substitutes into compliments, and shifts toward higher demand in services are seemingly leading factors that face the current automotive industry in the immediate future. But first, we should not ignore the political forces at play within the market.

One industry that is currently undergoing environmental challenges that call for changes is the American Automotive Industry. Vehicle emissions are a major contributor to the issue of global warming. When speaking of emissions we are referring to the amount of carbon dioxide and other gaseous chemicals that are released into the atmosphere. The release of these gasses creates respiratory issues in the populace, as well as creates thinning (and eventually holes) in our ozone layer. These gases are expelled from vehicles when fuel is burned; the greater the fuel usage of a vehicle the more it burns off into the atmosphere.

In regards to the social changes the automobile industry is receiving from heavy feedback from their consumers. There is a need for automobile manufactures and engineers to create vehicles that environmentally friendly and conscious of their carbon footprint. The days of making huge gas guzzlers and air pollutant vehicles are long gone. In response to this social change outcry manufactures have stepped up to the plate, creating more hybrid and electric vehicles. For Autozone this could possible be unsettling, due to the fact that the technology that goes into creating and maintaining vehicles such as these parts will not be so easily accessed.

Similarly government regulations in the United States and Europe are tightening up, consequently requiring cars to be cleaner and more fuel efficient. As a result, the collaboration with BMW is paramount to getting the most fuel efficient vehicles to the market in a timely manner so that GM can harvest a substantial profit. (3) In addition General Motors is working on the next generation of fuel efficient and gasoline free vehicles to help reduce the impact of the vehicle on the environment, while preserving personal mobility, which further indicates its commitment to innovation. (6)

The American automotive industry is a massive force, to say the least. The historical impacts of automotive technology and assembly line manufacturing has effected economies around the world and has also created world-wide ecological challenges. Governments, under pressure from environmentalists, have had to realize, create, implement, and constantly refine manufacturing and emission standards. Consumers, who foot the gas bill for vehicles, continue to express their desire for less expensive autos that require less fuel without sacrificing style, comfort, safety, or performance.

The American Auto industry has matured over several decades and is one of the best auto industries in the world. However, like any other industry, it is fraught with many environmental challenges that include Political and Regulatory challenges, fierce global competition from other auto manufacturers, rapid advancement of technologies for powering the products in this industry, as well as challenges from stemming from consumer opinions about their products.

4. In a service supply chain, the (explicit) cost of information is higher than in a product

Supply chain management (SCM) is a core part of organizational effectiveness in order to achieve goals characterizes efficiency. Globalization and international agreement led Toyota to develop it is SCM process to increase outsourcing supply raw materials from foreign market that are low cost and high quality.

This assignment gives the overview of the Toyota and Volkswagen. It also explains about their supply chain relationship of those manufacturers. It also gives the advantages and disadvantages of those companies. I have also compared the strategies of Toyota and Volkswagen. I have collected some details regarding the future scope and threats for both the manufacturers. I have given some general statistics of both the companies. Then I have given some future strategies of those concerns.

The increasing numbers of sub-model cars can also affect the brand quality through increasing any risk issues once launched to the public. Furthermore, according to (Stephen, 2004) Mercedes customers have high expectations about the high quality promised by the company. In 2003, the company disappointed many customers when they sold over 2000 vehicles with an extra option for a navigation system, which were not ready to be delivered at the right time, also accompanied by other mechanical issues. On the other hand, the company made an announcement about its new high quality hydraulic breaking system, which increased its competitiveness in terms of safety and quality against other competitors in the industry.