Evaluating Supply Chain Management in the Volkswagon Brazil resende

Evaluating Supply Chain Management in the Volkswagon Brazil resendeThe RESENDE pulverization of Volkswagen federation in BRAZIL brought revolution in the automobile perseverance around the globe the grind has wholly unique communicate string cast and was first of its kind. The resend sic was in addition known as the renascence of Volkswagen comp alone as later the Auto Latina was ended between Volkswagen and ford as Volkswagen go with has no manufacturing plant to manufacture its trucks and b intents so resend was built in Brazil in 1995. The Volkswagen has around 400 suppliers who use to publish contrary spare go bads for the manufacturing of trucks and buses the Brazilian foodstuff was renowned for Volkswagen trucks and buses, Volkswagen club apologise their suppliers to 8 and then had contracts with them, the whole pedestal of Resende mill was a Modular syndicate, the eighter suppliers would be glide path in with the supplies and then neutering that is assembling it up, it was like a mini shops they own inside the grind that is they were the manufacturing business and as well as the assembling was d whiz by them, this model was very new to supply stove that was accomplished thither, no organizeer of Volkswagen caller-out was there except the fiber control as it is one of the important factor to check. The supply scope model helped them to cut their force fol minor and stimulate them avail to lot their buses n trucks at deject price that how they made their customers and the competitors were non able to disdain their prices as they were manufacturing the parts as well as assembling them the good thing almost Volkswagen Resende plant was that they were hiring wear upon at cheap greets which helped them to cut their comprise. Just as the factory started operating the nearly important person was squeeze to leave the organization as the Jos Ignacio Lpez de Arriorta was working with gm and left-hand(a) gm joined V olkswagen. As when they started with the resend factory the claim did by Volkswagen was lawfully accepted ant Volkswagen paid a good amount for it as gm had did the claim that lopes left gm with some important documents miss and data as they said he spy us and the resend factory was to a greater extent like their judgement which Jos Ignacio Lpez de Arriorta started their so just at the initiation the big question mark was with this factory, more over Jos Ignacio Lpez de Arriorta was coerce to resign and had left the ships association leaving the post of transaction management which was a loss to the factory and have the big importance to the resend factory.VWs supply chemical chain scheme according to Michael Porters strategic frameworkThe Resende factory of Volkswagen company known as the spiritual rebirth of Volkswagen company established in Brazil known as modular consortium was very unique in sense of supply chain as only new frame work was being applied to it as it wa s a junction where all suppliers of dis correspondent companies come and make up the whole product (trucks and buses) that is they work in a way that there were different suppliers who were bringing up the parts of trucks and assembling them up that is suppliers were also the labors and was responsible for the production as well as assembling the trucks and buses they come and work in the factory. Discussing about supply chain model used by Volkswagen company in their Resende factory was a entirely new supply chain strategy and if we talk about it in the light of Michale Porters strategic frame work it would be as fol offsetsThe curse of the entry of new competitorsThe Resende factory of Volkswagen company was the first one in entire automobile industry having this kind of supply chain model that is a modular consortium model. The main point of attraction to the automobile world was the management of operations in the plant as the plant was first of its type more over one whorem aster take it as an test so at that point of time the curse of a new competitor to enter was up to 0%. As the concept has bring revolution in the traditional supply chain strategies in automobile industry so at the beginning the competitor was not at all the threat but the execution of the supply chain model could create threats as just at the beginning the companys operation manger left so the competitors are always looking for something which they can use as an advantage to its competitor.The intensity of competitive rivalryThe intensity of competitive rivalry was there in the form of General Motor for Volkswagen Company because of their lawsuit. the operation manger Jos Ignacio Lpez de Arriorta left so at that time things become difficult for them but Volkswagen mange it efficiently merely the suppliers which was the main theme of this Resende factory the modular consortium was all about the supplier which was cut carry out to eight from cardinal hundred they have to be a go od and strong bonding with them as if any one of them left the trucks and buses would be hard to finish as the company has no plant to amaze the products after their joint venture with ford ended so the suppliers were very important to Volkswagen. The anformer(a) competitive advantage competitors of Volkswagen had was that the suppliers with Volkswagen was due to the relationship of Jos Ignacio Lpez de Arriorta as in general motor he was the managing director of Latin America state so he use his reference in Volkswagen company so he was forced to resign from the company the suppliers can also leave but fortunately this never happened and the Resende factory known as rebirth to Volkswagen name a new life to Volkswagen company indeed.The threat of substitute products or servicesThe threat of substitute was there in Brazil as it was the largest market of all and Volkswagen companys the Resende factory was a totally new thing in the industry of automobile industry more over the suppl y chain strategy they used was the first to be used in any factory the unique idea they applied worked for them as they didnt had any employee of Volkswagen company to work in the plant it was totally outsourced plant as the suppliers was also the labor not only responsible for render the parts more over fixing them up as it was a solely new strategy of supply chain utilise by the Volkswagen company. The only people by Volkswagen company were the quality control departments they were responsible to give the perfect quality so that their trucks and buses be the strength to the company not the strength of the competitor this model of supply chain worked and helped Volkswagen to cut its labor cost which help them to let down their prices compared to its competitors so the threat of a substitute was around 0% as the competitors were manufacturing their trucks and they cannot lower their prices so Volkswagen company was going good.The bargaining creator of customers (buyers)The Rese nde factory of the Volkswagen company was a revolutionary factory for the world the plant was using a supply chain strategy that really help them in generating revenue as they cut their suppliers from 400 to 8 and they were the suppliers as well as the assemblers for the trucks and buses and if any part for not perfectly fitted or had a problem the loss would be barred by the supplier the Volkswagen company were generating revenues out of the supply chain strategy they have implemented in the plant moreover if we talk about the barging power of the customers we can severalize that the factory was saving a lot to Volkswagen company as their cost have lower down a lot so they can give the trucks and buses at lower cost which was the thing that its competitors cannot compete as they were making up the product by themselves and buyers were getting advantage for it they dont need to bargain as the trucks and buses were already at lower costs. The customer were getting at good advantage on buying Volkswagen trucks and buses so the bargaining power of the buyer didnt affect much on the Volkswagen company.The bargaining power of suppliersAs they cut down their suppliers from four hundred to eight the suppliers working with them in the Resende factory would be having good relations with the Volkswagen company and more over they would be having some advantages to be the part of the Resende factory as they were infer to produce the parts and assemble them up for Volkswagen company so there would be some interest of their also as they were the part of the Resende factory and making up the trucks and buses for Volkswagen company and that was giving a benefit on cost to the Volkswagen so their trucks and buses were less in cost compared to other companies in the Brazilian market, Volkswagen company had intend about it, as they were dealing with a good number of suppliers and above all they dont own any plant for making the parts of the truck as they were totally out sour cing them and the operations as well as the assembling were done by the suppliers, they have been critises by one of the worker on just outsourcing everything, thence they have to be very good at it and have to implement the supply chain strategy very well more over there were no employee of Volkswagen company working there, so everyone working there under one roof would be wearing very(prenominal) uniform having same salary packages and more over they dont want any labor union to be made up as they were catering the whole of brazil and the trucks were very famous around brazil.Analyze the ways in which VW could employ technology across the different supply chain processes.As the Resende factory of Volkswagen was something really innovative and more unique was the supply chain model implemented on the factory which was assembling of the trucks as well as the production was the duty of the suppliers, Jos Ignacio Lpez de Arriorta designed it in such a way that no labor cost was to be incurred from Volkswagen company as there were no Volkswagen workers involved in the factory except the quality control supervisors as the suppliers were bounded for displace up the parts of trucks and buses the factory is producing the technology they used or we can say that the supply chain strategy they implies in this factory was really working for them as they have cut their cost in sense of labor cost more over the assembling was no more there issue as now it was the problem of the suppliers. The Volkswagen company c use to hire the labor through lowest bidder and the new technology was working so good that they planned to apply this strategy of supply chain to their other factories in different parts of world and the benefit from this supply chain strategy is for the developing countries as they can use the idea the modular consortium as it is the hazard of suppliers who are producing as well as assembling the trucks and busses for them and Volkswagen company is decreasi ng its labor cost at good. The main idea was like the contractors which were suppliers was totally responsible for making up the part which is required and fixing it perfectly as if the part fitted or purchased not sit right than the company which was responsible for putting the part bare the loss the Volkswagen company were really generating revenues with the factory, in the factory there were around eight suppliers who were operating there mini shops in the factory the company was able to get supplies in low rates so they can sell the busses and trucks at low price and attract the customers towards them and the other competitors of Volkswagen company was not able to compete as they were producing everything by them self which was hard for them to cut the costs and therefore cant lower the prices and that helped Volkswagen company to generate their revenues, and this supply chain strategy was a success for Volkswagen. esteem current global supply chain challenges to this VW supply chain model.Global Supply Chain ChallengesAt the Resende plant of Volkswagen totally new model of supply chain was implemented which was a risk because the Resende factory was first in nature to its own moreover it was more important to Volkswagen as it was a rebirth to the Volkswagen company as their Auto Latina was ended so their factory at Brazil that is Resende was the only forecast as they did not had any factory to produce trucks and buses, the supply chain model was a totally new idea in the industry of auto mobile Modular consortium just at the starting it faced a challenge to its survival in the form of its operation manger Jos Ignacio Lpez de Arriorta left because of some lawsuit between Volkswagen and General Motors.Just in time inventory. different supply chain strategies can help a business minimize their costs and focus on their main business that is there core competencies and more over it cut the time waste on waiting for the suppliers and sometimes not perfect sup plies can make company suffers a lot and hold out losses moreover they can take away your customers from you, can give the competitive advantage to the other company that is your competitor. There are several strategies for supply chain practiced by many organizations. to a greater extent over there are several global supply chain challenges.The first challenge to the resend factory was to gestate having totally new model of supply chain as the modular consortium was about the suppliers would be working as the labor in the factory no Volkswagen employee would be there and they were suppose to perform the activity of suppliers as well as labor for the company this method reduce the cost of labor to the Volkswagen company moreover manufacturing all the parts were more costly than to just buy them up.As the world is moving so rapidly technology is changing with respect to time so as the new threats are there supply chain has a good growth in coming future as many industries working a round the world is not making up all its products there are things they supply and get supplies to make up their end product which plays an important use in the companies having their branches all around world have to look for suppliers and the supplies they would be getting should not increment their cost or reduce their core competence as the competition is very tough so therefore the supply cost should not exceed as your revenue decrease.As the VW supply chain model was based on suppliers as if they lose any of the supplier their truck was impossible to shape as they them self was not producing to that scale as it was just like a junction where different suppliers were bringing up the part they manufacture and assembling them which helped VW to cut their cost more over to sell their trucks and buses at low rates as compared to its competitors VW was facing some supply chain challenges as they were supplying all the parts and the suppliers were responsible for fixing them moreo ver in content of damage they have to view as it if any there were no blue collar worker of VW at the factory except quality control as it was a point at which its competitor can have advantage so the whole idea was a supply chain game. Economic challenges was their more over in case of natural disaster they were the one who have to faced it all as the factory was not producing anything so it was a challenge to maintain a good relations with their suppliers so they dont stand against them.CONCLUSIONthe supply chain model faced difficulties in the starting as the main operation manager Jos Ignacio Lpez de Arriorta was forced to leave the company because General Motor claims that Jos Ignacio Lpez de Arriorta has left the organization with some very important documents more over the resend factory was somewhat similar to a new project general motor was working so Jos Ignacio Lpez de Arriorta was forced to leave the company, just at the beginning the Resende factory faced a loss but t he supply chain model fits right and Volkswagen generated good revenue out of it and give out its trucks and buses at low cost compared to other automobile companies in brazil as the model helped them to cut their labor cost out of all the conflicts and issues the Resende faced it was a success at the end and the rebirth of Volkswagen succeeded.