Navistar Supply Management

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Executive Summary
Navistar was a worldwide leader in the manufacturing medium and heavy trucks for 17 consecutive years in the North America market. Navistar’s premium conventional trucks were produced at the Chatham assembly plant, which had almost 14 years experience in producing Navistar’s premium line since 1983. Navistar had forecasted increased industry demand for heavy and medium trucks in 1998. Especially, the Chatham assembly plant’s customers had strict requirements to the truck’s quality and delivery date. As the assembly supervisor in Chatham, Andy Ramsz encountered the interior trim quality and delivery problem for the truck. Andy had begun to gather data on the interior trim supply problem and he got the crucial reasons for these problems occurred. These reasons absolutely affected the Navistar’s internal supply process, increased the extra cost as well as reduced the efficiency of the supply management. According to the reasons identified for the trim supply problem, my decision is to set up the improved procedure focused on problems identified and take plans to enhance efficiency and productiveness of trim supply chain so as to relieve the difficulty of shortage problem and meet customers’ requirement accurately.

Issue Identification
Navistar provides premium trucks that ranged in design from no frill models to highly customized units. Customers are able to select from customized units which represented 50-80 percent of production volumes. These customized units contained various options that formed kits that included anywhere from 18-26 individual trim pieces.

Andy Ramsz, the Assembly Supervisor at Navistar’s Chatham facility has been experiencing an issue with interior trim shortages for Navistar’s premium conventional trucks. The shortage of parts and non compliance with delivery schedules did not allow plant assemblers to complete the interior of a truck. The delay in completing the truck affected the bottom line as the interruption

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