Supply chain management: Renault

Résumé du document

The Renault/Dacia Logan is the result of a fabulous challenge initiated by Renault along with its Romanian subsidiary Dacia : commercialization of a modern, simple and robust car which not only meets the 2005 European standards, but which is also practical, performing, good looking and spacious, all this at the flabbergasting base price of 5,000 euros. The production costs have been drastically reduced not only by means of the skilled and relatively low-cost Romanian labor force, but also by using well known and proven power-trains and mechanical components from the Renault- Nissan alliance. Since mid 2005, Renault has decided to market the Dacia Logan in most of Western Europe. The excellent reception the car has been given by both the motoring press and the general public, along with successful customer tests, have led Renault to extend sales of the Logan beyond its priority markets.

Extraits

[...] This planning process took nearly a month each month! The New Delivery Project required the planning process to be shortened to three weeks. Alongside the planning process, customer orders taken in dealerships are sent daily to headquarters, which in turn dispatches them to vehicle plants once a week. At the end of the supply chain, assembly plants perform daily the planning and scheduling of their productions. The New Delivery Project required the customer orders to go down a continuous pipeline from dealerships straight to assembly plants, thus bypassing the weekly dispatch by headquarters. [...]

[...] This simplifies and automates the customs procedures at shipment time, according to the solution provider. Open Harbor's solution, launched in September 2003, includes trade compliance rules for 64 countries, which the provider says covers 95 percent of global commerce. The solution is designed to help companies eliminate shipment delays and fines imposed by the customs authorities, as well as to reduce costs associated with international trade compliance. The online Global Security and Compliance solution helps store and manage the international trade characteristics of a customer's catalog, including country of origin and country-specific harmonized tariff system codes. [...]

[...] Supply chain management: Renault Introduction Renault/Dacia Logan, high tech at low price. The Renault/Dacia Logan is the result of a fabulous challenge initiated by Renault along with its Romanian subsidiary Dacia : commercialization of a modern, simple and robust car which not only meets the 2005 European standards, but which is also practical, performing, good looking and spacious all this at the flabbergasting base price of 5,000 euros. The production costs have been drastically reduced not only by means of the skilled and relatively low-cost Romanian labour force, but also by using well known and proven powertrains and mechanical components from the Renault- Nissan alliance. [...]

[...] All the computations were performed by hours-long night batches. Simulations were naturally impossible, nor any kind of interactivity between end-users and IS. In addition, severe misunderstandings between salespeople and industrial planners were caused by divergent product description languages and lack of thorough answers to basic questions: What are the objectives of the respective planning processes of sales and industrial departments? What are the decision variables of each other? What kind of common constraints should be taken into account? How can Renault manage the international trade characteristics of the Logan? [...]

[...] Therefore, Renault's management decided on a mixed-sourcing strategy of having the $6,000 LOGAN automobile assembled on-site, using both locally sourced and imported Renault parts. For example, Renault's Romanian subsidiary Dacia, acquired in 1999, manufactures cars using Renault and local parts, and the company then sells these vehicles in the local market as well as to other countries in Central and Eastern Europe. This strategy, while embracing one of Renault's strategic goals of quality, cost control, and just-in-time delivery, increased the complexity of managing customs clearance, both between Europe and the developing countries, and between these countries themselves. [...]