Supply chain management and OEMS

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Supply chain management and OEMS

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Abstract

The competiveness of international companies is highly dependent on their ability to deliver customized products quickly and timely all over the world. Therefore the focus has moved from competition between firms at the same level in the production process to competition between the supply chains, from raw materials to end customers. A company's ability to create a trust based and long term business relationship with the customers, suppliers and other strategic partners has become a crucial competitive parameter. The tendency towards increased integration and cooperation between enterprises in the supply chain results in greater complexity in the management and control technology, which requires increased co-ordination of resources and activities

Introduction
A firm's approach
The object of supply chain management (SCM)
Literature review
1. Understanding supplier development
2. Drawbacks of suppier development strategy
3. Various distinctions between the supply developments
OEM and supplier development
1. The partner relationship between the OEM and the suppliers
2. Collective bargaining in the US
3. The largest suppliers in the US automotive industry
Japanese approach vs the Western approach
The supplier's perspective on OEMs
Future trends strategy and approaches of supplier development
The success and failure of OEM for each company
The disadvantages for OEMs.
References

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[...] supplier development encompasses effort of a buying firm with its supplier to increase the performance and/or capabilities of the supplier and meet the buying firm's supply needs”. There are various distinctions between the supply developments Firstly, a few rather general supplier development processes that support firms in identifying, evaluating, conducting and following up on supplier development projects have been recommended. For example, Krause et al. (1998) described a generic ten-step process model ranging from the identification of critical commodities for development to the systematic institution of ongoing continuous improvement. [...]

[...] (Wagner Stephan pg 556, emerald) The object of supply chain management (SCM) is the supply chain which represents a network of organization that are involved, through upstream and downstream linkages, in different process and activates that produce value in the form of products and services in the hands of the ultimate customer ( Christopher pg 17) In a broad sense, a supply chain consists of two or more legally separated organizations, being linked by material, information and financial flows. These organizations are those firms which are mostly involved in producing spare parts, components and end parts, logistic service provider or the customer himself so the above definition also incorporates the target group, i.e. [...]

[...] In case of Nissan, Honda and other Japanese OEM'S with North American production facilities most supply operations are separate firms though they are highly enmeshed via ownership, financing, and long term contracts. (Richard, Joel, Walton pg 121) Collective bargaining in the US has OEM supply operation has generally fallen under the broad umbrella of national agreements between the OEM'S and the UAW. However that dates back to acquisition of formerly independent suppliers, such as general motors, Packard electric division which bargains with IUE. [...]

[...] Another cause of concern is that suppliers often do not have the technical infrastructure to implement a fully integrated supply chain management system, they are pressured by OEM to do so this ends up increase in the cost and supplier eroding proof ability and on the other hand they are concerned of being exploited by OEMs and also run the risk of being left out by the OEMs. (Hamid, Christopher pg 965) In other words the feeling of the psychological ownership of the supply chain arises among the individuals from different partner organizations, which enhances co-operative behavior. [...]

[...] Because JIT is effective at achieving these goals, it has experienced great popularity in automotive manufacturing sector but due to this popularity JIT no longer provides an original equipment manufacturer or a supplier with any distinct competitive advantage, to re-establish means to achieve an advantage in the market, OEMs and suppliers are investigating progressive managerial systems to improve the efficiency of the supply chain (Carl pegels pg 100). It is increasingly being argued that in today's competitive market place an important way of securing strategic advantage for companies or OEMs is the use of highly integrated supply chains. [...]

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