Sample Essay

The major themes of the supply chain management that are used in the automotive industry pertain to lean operations the volatility of the demand and the resultant impact on the inventory as well as the strategic repositioning and profit distribution in the company.

The theme of the lean operations deal with how the different companies operating together to run the supply chain for the automobile manufacturers were oriented towards increasing leanness in their operations. The result of these strategies has enables the automobile companies to be able to reduce their costs on a continual basis and cope with the varying level of production, both in terms of high levels and low levels of production. However the industry is facing obstacles in terms of the industrial relations, the lack of the 3pl and the shortage of skilled human resource in the market which is preventing the automobile companies to adopt the model for complete or total lean operations.

As the automobile manufacturers are getting closer to their end customers that are shifting the profits form the dealers and the distributors to the manufactures. Similarly in the supply chain managements systems, the organization is such that the automobile manufactures are deemed more powerful than the suppliers, resulting in a larger percentage of profit earnings lying with the manufactures for the sale of the finished goods as compared to the suppliers.

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Essay: Theme of Supply Chain Management
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