Title page

Table of contents

Abstract

I.  Introduction

A. History of automotive industry

B. Impact of globalization on industry

C. Changes in manufacturing processes and its impact on the vehicle supply chain

II.  Globalization Issues

A. Different products in different markets and operating across multiple geographic

areas

B.  Language barriers

C.  Cross-cultural communication issues

D. Using suppliers with different technologies

III.  Labor Shortage

A. Lack of experienced labor pool

B. Study of supply chain declining in popularity makes replacing experienced people difficult

IV.  Poor Visibility of automotive parts

A. In house and 3rd party provider sourced parts

B. Routing of parts and delays in automobile manufacturing

C. Avoiding shut down and revenue loss

D. Working with manufacturers and suppliers to streamline parts manufacture and distribution

E. Optimizing automotive parts visibility and inventory management though updated or new technology

F. Streamline the flow of parts between suppliers, manufacturers, and other parties, thereby allowing everyone to be prepared to receive and process parts in an expedited and efficient manner

G. Use of analysis to predict and understand the future demand of auto parts based on the consumer demands and other factors.

V.  Lack of information visibility

A. Outdated legacy system – working with outdated technology

B. Lack of new technology needed in order to focus on continual improvement efforts.

C. Suppliers have no production management systems

VI.  External factors disrupting automotive supply chain

A. Political factors

B. Economic factors

C. Environmental factors

D. Marketplace factors

E. Implementing effective risk management for more likely and most impactful potential issues

1. Seek out all potential risks that could impact automotive supply chain

2. Have contingency and mitigation plans

3. Analyze automotive marketplace

VII.  High fixed and variable costs throughout the supply chain

A. Visibility of expenses of both fixed and variable basis

B. Insist on accurate cost controls throughout the automotive supply chain

C. Get contracts and agreements in place (both internal and external automotive parties). These should clearly define costs, expense controls, and reporting on meeting such targets.

D. Run financial modeling

E. Auditing the price and costs routinely in order to ensure that everything is aligned with agreements and contracts already set.

VIII. Poor Quality Manufacturing

A. Lack of oversight and auditing

B. Issues with quality and vehicles not performing as expected

C. Recalls

D. Damaged reputations

E. Loss of revenue

F. Arrange for both internal and independent, external audits of both suppliers and manufacturers, in order to ensure that they adhere to the organization’s quality standards.

G. Implementation of batch control, as well as tracking in order to identify the potential source of any and all faulty parts.

IX. Inventory

A. Accurate inventory of raw materials and parts

B. Finished vehicles and tracking its stock

C. Align production cycles with consumer demand trends

D. Forecasts of future requirements based on ever-changing marketplace tastes

E. Marketing and Sales

F. Keep up with innovative trends

X. Conclusion

XI. References