The analysis of the research undertaken revealed that the companies in the automobile industry were employing different forms of production and supply chain methodologies which pertained to forming contracts with third parties to facilitate production and supply chain management
or go into establish long term relationships as in the Toyota Production System for lean operations and the management of the supply chain. The issues that were faced by the company in terms of employing supply chain management have been provided below.
The companies faced problems pertaining to low level of productivity which hampered the evident use and the management of their supply and value chain. While the overall volume in the industry is very high for the level of production, it does not match the demand for the products in the market and the capacity of the production lines. The lower satisfaction of the market leads to market which is not tapped by the industry. Moreover a lean and brittle supplier base for some companies in the industry is present which impacts the sale of the finished goods in the international market in terms of its acceptability by the buyers in the market and the image of the automaker and the brand. The automakers have been mitigating the risks associated with limited production by niche marketing their products and selling them at premium prices as the demand for the product is much higher than the supply of the products in the market.
These are excerpts of essays please place order for custom essay paper, term papers, research papers, thesis, dissertation, book reports and case studies.