GLOBAL SUPPLY CHAIN MANAGEMENT

GLOBAL SUPPLY CHAIN MANAGEMENT

GLOBAL SUPPLY CHAIN MANAGEMENT

Volkswagen's supply chain strategy

First of all it is important to understand the concept of Supply Chain Management and its related functions. Supply Chain Management (SCM) is a network of facilities and distribution facilities whose function is to obtain materials, processing of these materials in intermediate products and finished products and distribution of these finished products to consumers. A supply chain consists of three parts

1) The supply

2) Making

3) The distribution

The supply side focuses on how, where and when you get it and providing raw materials for manufacturing. Manufacturing converts these raw materials into finished products and distribution ensures that these products finally reach the consumer through a network of distributors, warehouses and retail stores. It is said that the string starts with the suppliers of your suppliers and customers end up with your customers. All suppliers of goods and services and all clients are linked by consumer demand for finished products, as well as materials and information exchanges in the logistics process from acquisition of raw materials to finished product delivery to the user final. The management of the supply chain is emerging as the combination of technology and best business practices worldwide. (Cooper, 1997, pp.10-14)

There are various companies in the world that have improved their internal operations and are now working to achieve greater savings and benefits by improving processes and information exchanges that occur between business partners. A successful supply chain delivery to final customers of the right product at the right place and at the right time, at the required price and lowest possible cost is vital. Apart from supply chain together, the business processes of multiple companies, as well as the various divisions and departments of the company are defined in a simple manner. SCM encompasses those activities associated with the movement of goods from raw material supply to final consumer. This includes the purchasing, production scheduling, order processing, inventory control, transportation, storage and customer service but more importantly it also includes information systems required to monitor these activities. (Porter, 1985, pp.121-135)

Best SCM programs share common features, first of all, have an obsessive fixation on customer demand. Instead of forcing the products to market quickly sold may or may not meet the demands of customers or be complete financial failure, this type of initiative is plotted development objectives and producing products that are demanded by customers are for minimizing the flow of raw materials, finished products, packaging materials, money and information at each point of the product cycle. These objectives have been sought by industrial companies for several decades and have experienced management and successfully implemented modern techniques such as Just in Time (JIT), Quick Response (QR), Efficient Customer Response (ECR), Managed Inventory Provider (VMI) and many more. These are the tools that help build a structure of robust supply chain. (Jay, 1991, pp.99-120)

The contribution of Volkswagen's supply chain strategy, to its overall company strategy, with reference to Michael porter's strategic framework ...