Briefing paper 5

1. Vehicle Manufacturer Supply Chain Management
This briefing paper provides a number of links to information about OEM supply chain management
and support. It concludes with a summary of key supply chain issues.
1. OEMs
Ford Supply Chain Sustainability Group: http://corporate.ford.com/our-company/governance-
hub/supply-chain-sustainability-group
Ford – Creating a sustainable supply chain: http://corporate.ford.com/microsites/sustainability-
report-2011-12/supply-sustainable#abf
Toyota (Toyota, Lexus, plus stakes in range of other brands including Daihatsu) supplier support:
http://www.toyota.com.au/toyota/sustainability/cms/download/Supplier_Support_41-45.pdf
Renault-Nissan Alliance (Renault, Nissan, Infiniti, Dacia, Datsun, Venucia, Lada) : http://www.nissan-
global.com/EN/DOCUMENT/PDF/SR/Renault_Nissan_Purchasing_Way_English.pdf
Aston Martin, Jaguar Land rover & Toyota shared supply chain solution :
http://www.achilles.co.uk/en/news/1886-global-car-manufacturers-launch-shared-supply-chain-
solution
BMW Group (BMW, Roll-Royce, Mini) Supplier Network:
http://www.bmwgroup.com/e/0_0_www_bmwgroup_com/verantwortung/lieferkette/ueberblick.h
tml
Mitsubishi Logistics Europe: http://www.mitsubishi-
logistics.de/?Service_%26amp%3B_Solution:Logistics%26nbsp%3B%26amp%3B_Projects:Supply_Ch
ains
Fiat Chrysler Automobiles (Fiat, Chrysler, Ferrari, Maserati, Alfa Romeo, Arbarth, Lancia, Dodge,
Jeep, Fiat Professional) : http://www.automotivesupplychain.org/features/91/77/Back-from-the-
Abyss/
Volkswagen Group (Volkswagen, Audi, Skoda, Seat, Bentley, Bugatti, Lamborghini, Porsche, Suzuki,
Volkswagen Commercial): http://www.csr-supplychain.org/supply-chain-programme/volkswagen-
sustainability-in-supplier-relations
Peugeot Citroën : http://b2b.psa-peugeot-citroen.com
Hyundai-Kia : http://www.ft.com/cms/s/0/dcd9f21e-bd73-11e2-890a-
00144feab7de.html#axzz3Av5Gv1rt
Honda : http://www.opentext.com/file_source/OpenText/en_US/PDF/01126-SS-Honda-EN-
FINAL.pdf . http://www.scribd.com/doc/29977840/Supply-Chain-Management-Principles-and-
Practices-at-Honda
Mazda : http://www.mazda.com/csr/csr_vision/distributor/
General Motors (Chevrolet, Buick, Cadillac, Opel, Vauxhall and brands in China and Korea):
http://www.gmsustainability.com/fancybox/issues_supplyChain.html

2. Daimler (Mercedes, Smart and an extensive portfolio of commercial brands):
http://sustainability.daimler.com/reports/daimler/annual/2011/nb/English/3080/supply-chain-
management.html
2. Supply Chain Management
Lean and resilient supply chain management:
http://www.automotivesupplychain.org/features/212/79/The-supply-chain-balancing-act/
A smarter automotive supply chain: http://www-
07.ibm.com/sg/manufacturing/pdf/manufacturing/Auto-industry.pdf
Automotive Supply Chain Magazine: http://www.automotivesupplychain.org/the-magazine/
3. Summary of Key Issues
 The industry is seeking a lean and resilient supply chain model that reconciles the business
benefits of JIT and minimum stock inventories to the realities of variations in demand,
logistics and the impact of unpredictable catastrophic events;
 The OEM and supply chain mix is best seen as a ‘collective of companies managing a
portfolio of capabilities’ where there is open communications and visibility, common
strategic planning and goals, leading to mutual benefits for all the companies involved in
delivering a quality and cost effective product to the customer;
 Local sourcing has a number of advantages: minimal logistics enabling agile JIT objectives;
efficient supplier communications (same language, same culture, same economic system);
effective group collaboration with shared information about lead times, demand, order
cycles etc through the entire tier system;
 Where major new markets are opening up (China, India, Brazil), existing domestic supply
chain companies are following the OEMs in establishing overseas manufacturing facilities.
This is only considered where the potential market justifies the investment;
 The focus of the supply chain company needs to be on the value to the intended consumer
of the OEM product, not the OEM company they are supplying.