Supply Chain Management under Porters Five Forces Model Research Paper

Supply Chain Management under Porters Five Forces get - Research Paper ExampleThis paper declares there is a corpse in inventory view as referred to as the two- stash away system, consisting of a bin for producing materials and a back-up containing these same materials. By adopting a just-in-time methodology, when the main output bin becomes depleted, it is quickly replaced by the back-up. It is at this point when materials are reordered to replenish the main bin. What this will do is annul the carrying costs of raw inventories, moving from a monthly replenishment system to a daily system that would streamline ordering of raw materials and subsequently allow for better predictive procurement. Implementation of an appropriate BRP system, such as SAP, would automatically calculate movement of materials for point of intersectionion, thus offering a model for procurement base on tangible, quantitative inventory usages. BRP as it relates to the two-bin system would provide the fle xible feedback mechanism required for hi-fi inventory control. HMC should also work on developing relationships with the supplier corporate culture through transversal coordination innovation. This is a relationship marketing concept designed to remove communication barriers between up-stream suppliers and down-stream buyers with a guidance on more coordination and partnership. HMC needs to establish mutually-beneficial alliance functions and negotiations throughout the supplier network to provide production/operations training to other corporate cultures and work together to develop a more antiphonary supply chain and supporting contract negotiation. The four drivers of supply chain management The four drivers of SCM let in outsourcing, globalization, supply and demand risk, and product life cycle in the sales market. With new automotive contracts, the product life cycle is limited due to model changes and new structural best practices for automotive products. Thus, fable will require a continuous adjustment methodology to existing assembly lines and machinery standards. This will fair limit the ability to consider long-term procurement and maximize production space and efficiency. This should be accepted when conducting quantitative quality planning, procurement models and predictions, and process controls. From this study it is clear that HMC is not in control of these customer-driven aspects and essential be flexible and adaptable to changing production design. However, globalization provides new opportunities for reducing pricing in the supply chain by considering supply alternatives and negotiating contracts with foreign manufacturers for non-automotive production (since these are guided by ISO or QS9000 standards). HMC is in a position to outsource assembly. For non-automotive parts, HMC could consider researching assembly partnerships for semi-finished assembly that can occur in foreign countries with lower delve standards and lower fair wage p ractices. This would reduce a percentage of labor costs, procurement costs, and allow for production space maximization in certain assembly areas.