This case study provides an overview of supply chain strategy and supply chain operations management planning for a complex automotive supply chain operation that the Daimler-Benz Corporation considers as a strategic learning project. Moreover, the concept being brought to practice by MCC (Smart Cars) is widely considered by leading car manufacturers as of key importance to future industry developments. Manufacturers and suppliers therefore monitor the successes and failures of MCC, as the results will in future influence organization of many other supply chains.
The case requires detailed analysis of the strategy options proposed, the actions that need to be taken and the implications for the supply chain management teams.
Rationale:
Strategic supply chain management means management of the complex network of supply chain operations, which gets products and services to the customer, and the physical arrangement of the supply chain operations facilities, technology and people. In the face of ever increasing complexity, and customer expectations for faster supply chain response, businesses must be able to identify the potential weaknesses of their supply chain networks and adopt appropriate supply chain strategies.
Analyse the attached case study “ The Smart Car and Smart Logistics” and submit a paper in report format of not more than 2700 words, with appendices, which discusses the specific supply chain management issues contained within the following tasks and questions:
Questions and tasks
Despite the innovative achievements, MCC management was facing a number of immediate and longer-term issues, centering on how to manage and control the supply chain.
1. Map the complete MCC Smart car supply chain and explain how the concept of supply and demand balance is being applied.
2. Why should MCC assemble cars itself when suppliers are already integrated on the site?
3. MCC is heavily focused on integrating the flow of information between players and levels in the chain but how should the performance of partners be measured and assured?
4. The order to delivery lead-time is generally faster than other manufacturers. However, visiting the Smart user club at www.thesmartclub.co.uk revealed such problems as:
“I just picked up my new Smart Pash tonight. I have been very excited all day. However, there were a few things not quite right when I got to Smart on Milton Keynes (MK Smart UK):
Color was wrong. I ordered a blue one. I definitely ordered blue. Car is silver, but I think I prefer the silver one now!!!!
No CD multi-changer fitted, as ordered. More gutted a4~out this really, I have no tapes at alt so the weekend driving will be listening to radio! MK Smart says they will get me in early next week to have this fitted.
No velour mats as ordered. They say they had none. Fair point, mats are not essential (unlike CD player!), but they will supply my mats when they are in.
All in alt I was a little disappointed, but the total handover was very well explained by Giles, and they were very apologetic about the missing bit and bob’s.
I wanted to specify it with Boomerang Red seats, but was told that this would be a special order taking up to 12 weeks (!!) as there is a run on Smarts at the moment So I accepted a car they already had in stock with Blue seats, but had all the clock/ reencounter / Speedo / controls with red trims … and I collected it three weeks later.”
Taking into account the (a) it is possible to have order-specific modules such as dashboards produced at two hours notice and (b) the final assembly process takes less than five hours, why is a response time of two to three weeks such a challenge for MCC?
5. The lean and agile modular product concept used by MCC permits customization of the product in the dealer channel through logistical postponement. However, at present the final assembly is done at the plant in Hambach. What could be the reason for that decision?
Assessment framework
u Addressing the issues raised in the assignment brief
u Demonstrating application of flow of reasoning
u Critical analysis using appropriate supply chain operations strategic and operational management models and theoretical frameworks
u Provision of evidence and examples to support observations
u Reference to appropriate published sources (Harvard system preferred)
u Demonstration of cognitive levels of learning to higher order levels (descriptor attached)
Credit:ivythesis.typepad.com
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