Table of Contents
2 Supply Chain Management3
2.1 Quality management4
2.2 Inventory management5
2.3 Supplier development6
Stage (1) Identify, Assess, and Rationalize the supply base6 Stage (2) Problem-Solving Development7
Stage (3) Proactive Development8
Stage (4) Integrative Development9
A summary of supplier development10
Harley Davidson is a famous American motorcycle manufacturer. Harley Davidson was founded in 1903, it survived from many challenge. Harley Davison has seen many changes through the years. The road of Harley Davison is not smooth, but under the successful management especially supply chain management, Harley Davison has made many continuous improvements. These improvements led Harley Davison to today’s success. This report is about supply chain management. This report links the principle with practice. This report is also an analysis of Harley Davison case.
2 Supply Chain Management
Supply Chain Management is a very important tool for business. What is supply chain management? Supply chain management is the management of upstream and downstream relationships with suppliers and customers to deliver superior value at less cost to the supply chain as a whole (Coventry 2010: 23).
Supply chain operates under an organisation’s supply network. There are many terms in supply chain. Some terms are used to explain different parts of the supply chain but overlap, these terms are purchasing and supply management, physical distribution management, logistics, merchandising, materials management and supply chain management, these represent an increasing degree of integration between the linkages of the supply chain (Coventry 2010: 16). In other words, Supply chain management includes all terms. Materials management includes purchasing, physical distribution management and inventory management. Logistics includes physical distribution management. Because supply chain operates under the supply network, so supplier is foundation. The operation’s interface with supplier is managed by Purchasing or supply management. Purchasing links operation with its supplier. That is to say the switching from purchasing to supply chain management is the key point of the supply chain. For purchasing, it’s very important to understand and improve the capabilities of the supplier. So supplier development is very important. The following part will link the video case and do some analysis of supplier development, also will talk about quality management and inventory management.
2.1 Quality management
What is quality?
The total composite product and service characteristics of marketing, engineering, manufacture and maintenance through which the product and service in use will meet the expectation by customer (Quality 2010: 2). Quality is very important, quality aim at the needs of the customer’s requirement. High-quality goods or services can satisfy customer. Quality cannot be ignored. Quality is a common language which is known by every managers form different nationality and culture. Quality is also a fundamental thing for a supply chain. Quality management is a process. This process is used for corrective actions and monitoring goods and services. Quality goes throughout the entire supply chain. Good quality can increase the customer satisfaction and business. So ensure the quality is not out of control and keep the monitoring of quality. In the early 1970s, Harley Davidson wants to take advantage from building more motorcycle faster. But Harley Davidson realized that faster is not necessarily better, their product is the worst at 1970-1974. Quality is also very important. Later, Harley Davidson did many action to increase the quality, such as set up a check point before the assembly, employees are involved to reinforced their comment to quality, reduce set up times, improve production control and efficiency. The improvement of...