Crucial long term relationships have to be established between the automobile company, its suppliers, as well as its dealers and buyers in the market. Due to the establishment of such relationships whereby the declared and the suppliers are ready to work and operate on a just in time basis with the company,
all the parties involved are able to take advantage of the beneficial condition of the environment in good times, and in times of challenges, the companies are able to set up and protect themselves and therefore attain competitive advantage over other companies which do not have such relationships established with their supplies, vendors and dealers in the market.
The automobile manufacturing company in the international market is one of the most competitive industries where the players in the market are constantly combating and competing with each other to attain the largest share of the target market and increase their overall market share by introducing new products which enable them to target the untapped market. “In most countries the distribution system for new cars has remained unchanged for many years, with the main emphasis on supplying customers from stock held at dealers. Despite high stocks, the performance of the supply chain has failed to meet customer expectations in terms of delivering the exact specification desired within an acceptable timescale.” (Tuner & Williams, 2005) The supply chain management in the automobile industry is a multiple dimensional as well as multiple discipline based function.
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