Scm - Renault Nissan
Individual Assignment: Renault – Nissan
Logistics and Supply Chain Management
Logistics and Supply Chain Management Individual Assignment
Module Coordinator: Dr Nicolas Wake Prepared by: Aissam Ouaza April 2012
1
Individual Assignment: Renault – Nissan
Logistics and Supply Chain Management
Executive summary
What if each client can get exactly the right model with the right color and all the options he or she wishes in a "reasonably short" delay? (“Renault Speeds Up Delivery” O.R. helps French automaker overhaul its supply chain from a built-to-inventory to a built-to-order perspective By Alain Nguyen). It seems to be a holistic goal for each automotive company, competing in an ever challenging global environment, under changing political circumstances and unpredictable natural conditions. However, some companies like Renault – Nissan managed to face the global international crisis, through a recovery program based on a radical change in its supply chain. Overcoming the push-pull boundary, generated substantial cost savings by reducing car inventory levels, and shortening lead times so as to create customer value by selling a better profitable product mix. Such an ambitious strategy involved a huge speed-up of the whole planning process. The significant change that improved the supply chain of Renault-Nissan was the creation of the Global Supply Chain Department (DSCM) in 2008 which has leaded significant improvements in the production process. The DSCM implemented also several best practices in collaboration with core departments like Supply Chain Architecture, Purchasing, Manufacturing, Sales and Marketing and Quality, that accompanied the move from a built-to-capacity to a built-to-order company. In addition, the strategic Alliance between Renault and Nissan brought a unique competitive advantage, combining the Nissan’s know-how and reliability with Renault’s design and cheaper streamlined supply chain, creating economies of scale by
Logistics and Supply Chain Management
Logistics and Supply Chain Management Individual Assignment
Module Coordinator: Dr Nicolas Wake Prepared by: Aissam Ouaza April 2012
1
Individual Assignment: Renault – Nissan
Logistics and Supply Chain Management
Executive summary
What if each client can get exactly the right model with the right color and all the options he or she wishes in a "reasonably short" delay? (“Renault Speeds Up Delivery” O.R. helps French automaker overhaul its supply chain from a built-to-inventory to a built-to-order perspective By Alain Nguyen). It seems to be a holistic goal for each automotive company, competing in an ever challenging global environment, under changing political circumstances and unpredictable natural conditions. However, some companies like Renault – Nissan managed to face the global international crisis, through a recovery program based on a radical change in its supply chain. Overcoming the push-pull boundary, generated substantial cost savings by reducing car inventory levels, and shortening lead times so as to create customer value by selling a better profitable product mix. Such an ambitious strategy involved a huge speed-up of the whole planning process. The significant change that improved the supply chain of Renault-Nissan was the creation of the Global Supply Chain Department (DSCM) in 2008 which has leaded significant improvements in the production process. The DSCM implemented also several best practices in collaboration with core departments like Supply Chain Architecture, Purchasing, Manufacturing, Sales and Marketing and Quality, that accompanied the move from a built-to-capacity to a built-to-order company. In addition, the strategic Alliance between Renault and Nissan brought a unique competitive advantage, combining the Nissan’s know-how and reliability with Renault’s design and cheaper streamlined supply chain, creating economies of scale by