The demand volatility in the market tends to create pressures on the inventory management system both for the raw materials as well as the finished goods at the company. the lack of the complete advancement, and the adoption of the relevant information system in some of the automobile companies in the industry have led to the distortions being present between the demand structures and the resultant inventory mechanism, which effects the delivery of the finished product in the market to the dealers and then on to the consumers.
The strategic repositioning was evident in companies which have reorganized themselves to better fit the model of lean operations and apply the just in time base supply chain methodology to their operations. It has also been seen that pertaining to the management of the supply chain operations the companies have started to shift toward the management of relationships with the end consumers of the automobile vehicles and establishing relationships with them through provision of after sales service and after sales marketing. The profit distribution in the supply chain management system is also being reorganized with the changes taking place for the evolution of the supply chain in the automobile industry
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