Value Chain

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Executive Summary

Value chain management has become more and more important in industry in past decades. This report provides an insight view of value chain in automotive industry and then examine leadership role of engineer in value chain management. Furthermore, the report will analyse why engineer is so important in management of value chain.

Analysis of value chain

Automotive industry plays an important pillar role in the economic development of all countries. This is because the development of automotive industry will definitely drive development of new technology, development of relative industry sectors and increasing revenue of the country. In this day and age, value chain management is becoming more and more important in automotive industry to improve their competitiveness. As value chain management is crucial part of automotive industry, how to improve the efficiancy of value chain is the key target. The value chain is aim to deliver valuable products to customer, therefore, the components involved in value chain need to integrate with others effectively to achieve high value products with less cost. One of the components is supply chain, the supply chain in motor vehicle industry is not only the process which tramsform raw materials, parts into a finished vehicle, it also include financing, product developing, transporting, distributing to customer. Thus, many small firms may involved in the supply chain to produce a product. These organizations should cooperate closely and coordinate material, information effectively to speeding up flows in supply chain (Stadtler and Kilger, 2008). Thereby, improving competitveness of the firm. Demand chain is the other part of value chain. Demand chain in motor vehicle industry is a process which company can anticipate customer’s demand in the vehicle market. For instance, there is a research that shows a increasingly number of young people prefer SUV cars to sedan cars, as a result, almost every car...
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