Supply Chain Management at International Automotive

Description

In 2008, International Automotive Company (IAC), a German manufacturer of automotive parts, acquired a plant in Reynosa, Mexico. This plant produced various types of motors for power windows, heating, ventilating, air conditioning, and wipers. At the time of acquisition, the plant was showing record losses. Because the acquisition was internally financed, it was crucial to make the plant profitable quickly. After conducting a deep analysis, the company discovered that a lack of proper management in the supply chain system was leading to a large amount of wasted resources. As a result, managers looked for opportunities to save money and facilitate improvements mainly in areas such as packaging, warehousing, and transportation. One of the greatest obstacles involved IAC’s employees, who were falling short in terms of knowledge and motivation.

Learning Objective

This case examines various elements of supply chain management (SCM) that offer improvement opportunities. A well-managed SCM system complemented by a lean management system enables a more efficient and effective operation, therefore making a company more profitable. This case presents the following main objectives: ·To describe the key elements and benefits of SCM. ·To show how SCM complements lean management. ·To identify key challenges and obstacles of SCM.This case can be used in undergraduate, graduate, and executive levels. It is appropriate for courses or workshops dealing with operations management, SCM, and lean management.

Keywords

lean management Mexico Operations management Supply chain management