Honda Supply Chain

Topics: Supply chain management, Honda, Logistics Pages: 11 (3472 words) Published: July 13, 2011
The history of Honda
Honda is one of the world’s largest motorcycle manufacturers and of the leaders in the automakers industry. It was founded in 1948 by Soichiro Honda and Takeo Fujisawa. It’s headquarter is in Tokyo, Japan and it serves worldwide. Honda has 492 subsidiaries and affiliates accounted under its equity. The company develops, manufactures, and markets a wide range of products such as: automobiles, motorcycles, scooters, ATV’s, electrical generators, water pumps, lawn and garden equipments, robotics, jets, jet engines, and thin-film solar cells. In 2001, Honda became the second-largest Japanese manufacturer and in 2008, it became the fourth largest automobile manufacturer in the United States. Honda’s major products are motorcycles, automobiles, and power products. The company uses “The Three Joys” principle, which is expressed as The Joy of Buying, The Joy of Selling, and The Joy of Creating. Honda’s global lineup consists of the Fit, Civic, Accord, Insight, CR-V, and Odyssey. The company’s most popular cars are the Civic and the Accord, as they were in the top five list of sales for the last few years. ( ) Honda’s Products & Strategy

Honda faces strong competition from its competitors in the industry as well as to the new challenges for the future. The company spends about 5% of its revenues into R&D ( Research and Development ). Honda is consistently developing technologies that improve quality, safety and environment performance of its products. The company is also conducting future research and development related to mobility. One of the company ways to reduce CO2 emissions is to proactively engaging in the development of next-generation mobility products such as fuel cell electric vehicles and batter electric vehicles for which electromotive technology will be the key. Honda released its prototype EV-neo in April 2010, a scooter model that was designed for durability in heavy-duty business such as delivery service. The idea behind this new prototype is to produce no CO2 emissions when driven. It also showed excellent practical performance when it came to cruising distance, startup acceleration when heavy loaded, and the capability to be easily charged via household outlets. Honda will continue developing their products in order to provide high quality, safety and create mobility that provides new value to Honda’s customers. With the Enterprise Strategy, Honda’s mission statement to supply highest quality products at a reasonable price for worldwide customer satisfaction. For the Corporate Strategy, Honda is trying to provide superior fuel economy, optimum safety, building products closer to customers, and more expansion worldwide. Honda’s Operational Strategy is to divide six administrative regional groups, pursue independence of local management and sales operations, keep evaluating and risk managing and providing high level of transparency. Honda established a manufacturing system that can respond rapidly to consumer requests to all production bases around the world. This ensures the delivery of their products that satisfy customers in all regions Honda also uses the strategy of creating incentives for better performance. The company manages that by exchanging information and knowledge freely with vendors and customers. It also specifies roles, tasks and responsibilities for suppliers and customers. Honda Supply Chain Management

Honda’s operational practice shows a great example of innovations in the automobile industry. Honda has strong in-depth relation with its suppliers, close and interactive similar to a partnership. Honda has been very careful for their site selection of their U.S. manufacturing plants and others worldwide. The company uses autonomic organizational structure and Japanese/North American manager mix. They allow new entrants that focus on more established products and processes. Honda uses their economies of scale by working with their parts suppliers...
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