Automobile Supply Chain Analysis

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Supply Chain

Introduction

Supply chain refers to the process of making the product reach the target market. Various organizations have leveraged the power of supply chain management methods to achieve a competitive edge over their competitors (Gobetto, 4). Goods change hands from a wide array of divergent worldwide organizations where some type of value is usually added at each and every stage. The paper shall map the supply chain of the Automobile industry. The manufacturers industry has achieved substantial growth. However, the Automobile manufacturers are faced with a distinct manufacturing challenge related to coordination of all its supply chain process. The challenge is related to bringing the produced

The products are larger products that need extensive logical efforts to be transported across the globe to the various outlets. The vehicles are rarely delivered directly to the customers since the majority of the vehicles is usually delivered directly to the retail outlets to be sold to the customers. The distribution process to the retailers is a discrete logistical issue with the various types of cars and vehicles delivered in massive qualities via boar or railroad if feasible and then later on picked by the car haulers and later on delivering to the

They use the local banks for the purpose of inventory financing. The retailers finances the purchase of the vehicles. They often make the interest payments and for aged-inventory make principal reductions to the lender up until the vehicles are sold to the customers. The retailers are tasked with the duty of making the decisions for inventory, and ordering the vehicles that fulfill their offering requirements. Choices such as vehicle colors, variety, and trim levels are made for the relatively smaller dealerships. The sellers dealing with vast volumes of cars are supplied with extra range of vehicles at the manufacture managed trim options and colors (Leeman, 55). The retailers usually take the delivery, preparing the cars for display, delivery and sold to the consumers. This entails cleaning, physical and visual inspecting, adding of fluids and fuels. Some of the cars are usually customized at the retail outlets and modified. However, the majority of the cars sold are as built by the