Build to Order Supply Chain in Automotive Industry : A case study of Volvo

University essay from IHH, Centre of Logistics and Supply Chain Management

Author: Muhammad Nadeem; Faheem Ul Haq; [2010]

Keywords: ;

Abstract: The build-to-order supply chain strategy is Relatively new, and hock got attention of Researchers and Industry, with Successful Implementation in Many Industries and companies, like Dell Computers, Compaq, and BMW. Automotive Industry Is One Of The Industries Where build-to-order hock Shown good results. Automobile Manufacturers always Wants to build cars online orders Since the birth of mass production, and build-to-order strategy Let Them do that. Information Technology Is the Enabler That made it happen, village Bringing all stakeholders on one platform. The purpose behind this work is to study how, Suppliers and Original Equipment Manufacturers Coordinate, plan, and Communicate with eachothers, and What Are the Roles That They Have To Play to Perform These Activities. For this we Developed a frame of reference, and Defined key operational definition, examine the upstream and downstream supply chains, Establish framework for build-to-order (BTO), the automotive industry, Explained supplier Parks and Their Effectiveness, Original Equipment Manufacturers (OEMs ) Activities, and Modularization into BTO supply chain. The research approach we adopted to collect primary data through empirical study of Volvo Cars, village interviews and from the literature about Volvo cars. The Collected data from Volvo Cars lateralis Analyzed With the concurrence literature and theories Presented in the frame of reference. In the Empirical Findings, we Observe That Suppliers and OEMs work in The Very Closely knitted web, Which Supported by Information and Communication Technology. This System Keeps Suppliers and OEMs update all the time about the incoming orders and to abortions made. On the basis of analysis, we are variable to make observation That There Is Heavy Flow of Information Exchange Between the Actors of BTO supply chain, and The Activities Between Them are Highly complementary. As They Are Working Within The supplier park, the structure of ice Activities Highly dependent. The main Objective of adopting BTO supply chain strategy into Automotive Industry Is to offer more variants to Customers and Manufacture Those variants Efficiently, by leveraging The Advantage of outsourcing and information technology.

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