The question implies that an external and internal analysis will be conducted to identify issues that could influence the supply chain strategic decisions and propose an input to a new strategy. Particular characteristics or conditions SBS is a Danish company that operates in the industry of aftermarket friction parts and breaks for cars, motorcycles, for energy and industrial systems. The products marketed include parts and systems aimed for improved personal safety and safer traffic. SBS is trying to differentiate from competitors by saying that they have 4 core competences: innovation, productivity, logistics and market orientation.
The focus of this report is on the automotive aftermarket – breaks for cars. In order to find out triggers for integration or disintegration, we will start our research with the 3 main stakeholders: customers, company and competitors.
SBS is more dominant and better represented in European markets. Due to this we will focus on this geographical area.
[...] Moreover, they should have a common coding system that is secure in case of unauthorized intrusion. The data should be available to all users. In order to make it happen, the supply network should implement the same IT system from Microsoft as SBS did. Procurement Since SBS integrates with primary suppliers, the procurement processes do not change. As for the secondary suppliers, there should be created a virtual organization that allows to work project-based. Furthermore, this ensures a link with the secondary suppliers and a possibility to come back to them in cases of inability of the primary suppliers to serve. [...]
[...] SBS can buy the most profitable suppliers and then be ahead of competition. Being ahead of competition can also be assured by having some unique new technologies implemented but it should be always reinforced in order to keep position. When it comes to suppliers, it can lead to have a pressure on disintegration when integrated suppliers do not work so hard anymore to achieve the company's standards, then competitors might be more efficient and find other solutions. Conclusion of the Helix model The current strategy is lean with a RBV, but the corporate strategy points towards agility and market orientation. [...]
[...] Why mass customization?[8] Mass customization includes both lean and agile principles. It is oriented towards repetitive manufacturing environment and it can be used for all types of customers, not only for those buying large bulk quantities. Other advantages: make to order capability lower inventory of end products (only inventory of modules and raw materials), flexible and responsive processes, and economies of scope. Moreover, SBS does not need high supplier integration with all of them. But they do need integration with the primary suppliers sourcing more complex materials. [...]
[...] Industry and market dynamics: - Mature markets with flat volumes - Differentiation through innovativeness - organizational design and excellence, network and IT seem to be potential differentiators - champions in the aftermarket are cost effective and do not have large networks Scope The focus of this report is on the automotive aftermarket breaks for cars. In order to find out triggers for integration or disintegration, we will start our research with the 3 main stakeholders: customers, company and competitors. SBS is more dominant and better represented in European markets. Due to this we will focus on this geographical area. The market presents velocity: higher demand in Western Europe where SBS has more operations compared to Eastern Europe. Moreover, the market presents demand fluctuations according to seasonal market velocity. [...]
[...] (n.d.). Logistics, Supply Chain and Competitive Advantage. Scandinavian Break Systems. (2011). Annual Report. Strategy and Supply Chain. (n.d.). In Managing the Global Supply Chain. [...]
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