Bus and Supply Chain

Topics: Bus, Bus rapid transit, Types of buses Pages: 22 (7047 words) Published: October 9, 2008
Table of Contents

Business Analysis3
About InnoBus3
Mission and strategy3
The competitive situation of InnoBus in the trade environment4 SWOT Analysis4
5-Forces Model by Porter6
The Unique Selling Proposition of InnoBus7
Competitors of InnoBus7
The Stakeholders of InnoBus8
The Legal Aspects8
The International Trade Environment8
The competitive advantage of InnoBus9
The logistic process at InnoBus9
The Process9
Planning and Master Production Schedule11
The position of InnoBus in the supply chain11
Current problems and risks of InnoBus14
Global Description14
Financial Position and Possible Bankruptcy14
Drop in Market Demand14
Conservatism with possible Customers14
Fierce Competition15
Logistics and Time-to-market15

Business Analysis
About InnoBus
InnoBus is a bus building company located in Canada. The company has customers in the United States and Canada and produces and sells a variety of buses designated for public transport within cities. Due to the bad financial situation ago the company was bought by the Dutch entrepreneur Jan de Koning 2 years. Jan de Koning introduced several new techniques and designs to the production and management process of the company. Since then the company recovered from the bad financial situation but is still not yet completely stable in regard to finance. Mission and strategy


The mission of InnoBus to provide the market (U.S.A, Canada, Mexico, Europe, Rest of the world) with a world-class bus.


Corporate social responsibility
Unequivocal excellence in all aspects of the company
Creative innovation
Honesty & integrity


The market can be divided in the following segments:
Duty and lifetime,
Type of service (public transport, school bus, company bus, airport bus), •Transit market (city bus, suburban bus, inner-city bus), •Heights (low-floor bus, high-floor bus),
Length (30ft, 40ft, 60ft),
Propulsion system (diesel, gas or electricity)
InnoBus focuses on public transport within the cities. Within this segment of the market there is a tough competition. To cope with the competitors and gain market share, InnoBus has to differentiate itself from its competitors. Within their market they focus on the low-floor and electric trolley bus, but because they are a small company they cannot afford to specialize too much. Price is the biggest order winning factor but also warranty, parts availability, quality of manuals, service. This all is part of the after sales service where InnoBus tries to emphasis on.

InnoBus differentiates itself from their competitors by introducing the low-floor bus, and by introducing the integral concept and the multiplex system. By using the integral system they have more influence on the design of the bus. Therefore they are able to adapt the design more to the customers’ specifications. And by using the multi-plex system they save a lot on wiring in the bus which leads to and decrease in costs and eventually to an increase in profit. Another innovation was the gluing of the shells.

InnoBus has a combination of a functional and a divisional structure. This structure is in essence a good and reliable one, but there are some issues that we like to address. Namely the communication, although there is a good communication between all levels of management there is a lack of taking directive actions e.g. the employees complain about unclear instructions, dirty workplace, un-safe work.

The competitive situation of InnoBus in the trade environment

SWOT Analysis


Advanced (Dutch) technology
When the company was taken over by Jan de Koning, InnoBus was nearly bankrupt. Thanks to the advanced technology from the Netherlands and the innovation -which is stimulated by the good technology- InnoBus was able to survive.

Jan de...

Links: Management, Schermerhorn, 8th Edition, John Wiley & Sons. Inc., 2006
Logistics Management and Strategy, Harrison & van Hoek, 3rd Edition, Prentice Hall, 2008
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