Supply Chain Mananger Essay

Submitted By parguedas
Words: 1267
Pages: 6


ABSTRACT Page Introduction 3

CONTENT History 3 Facts 4 Decision 5 Methodology 6 Recommendations 12

TABLES OF CONTENT Cost Analysis 6 Disperse Chart 9 SWOT 10 Decision Tree 11

The Volkswagen Group, headquartered in Wolfsburg, Germany was one of the world’s leading automobile automakers and largest in Europe. Represent nine different brands as Volkswagen, Audi, SEAT, Skoda, Volkswagen Commercial Vehicles, Bentley, Bugatti, Lamborghini and Scania. The group range from small and low- consumption vehicles to luxury cars. Commercial vehicles offer heavy trucks, spanned pick- ups and buses.
Their Global brand sold and distributed vehicles in 153 countries with 62 production plants in 15 European countries and seven in the Americas, Asia and Africa. Around the world nearly 400,000 employees produced 30,000 vehicles per day or were involved in other vehicle-related services. With all its brands the group had a presence in all important automotive markets around the world including Western Europe, China, Brazil, USA, Russia, and Mexico. Incredibly, the company had been able to expand its market share in 2010 despite the actual economy climate and competitive marketplace. With an increase of about 15 per cent of the reported prior period the company succeeded with a new record. The demand of the company in 2010 exceeded the precious years demand in all models and almost in all markets. The group had a new strategy called “Strategy 2016” which was a global strategy originated at the corporate level and was pushed down to each group at a country level. Their key element was to position the company as a global, economic and environmental leader among automobile manufacturers. The group’s aim was to be the most successful and fascinating automaker in the world by 2016. Although the growth in passenger car market in USA had slowed in 2010 the sales figures had increased by 21 per cent in 2010 from 2009 as a whole. In Canada, deliveries increased by 16 per cent year over year. VGCA operated the Parts Distribution Centre (PDC) located in Toronto, ON as part of the North American distribution network that included seven large PDC’s situated across the United States which stored the 100 per cent spare parts and maintenance parts of the smallest PCD’s which hold around 60 to 80 per cent of the most commonly ordered parts. In 2009, VGCA sold approximately 69,000 vehicles in Canada of VW and Audi brands. The spare parts shipped out of the Toronto PDC to Canadian dealerships amounted to $200 million in revenue. VGCA had aggressive plans to grow of new car sales annually by 10 per cent per year over the next five years. Same rate for the spare parts including the ability to service the demand of additional 17 new dealerships scheduled to open in new markets like Ontario B. Columbia. The company planned to launch four different models and four new different facelifts and these are some of the information it will help to take most advantaged decision to face the actual growth and expected expansion of the company for the next five years.

About VGCA growth plan:
Launching 4 new models and 4 new facelifts per year during the next three years.
4 new models will add 3,000 in new SKU’s - Total: 12,000 new SKU’s
4 new facelift will add 1,000 in new SKU’s - Total: 4,000 new SKU’s

About Toronto PDC:
75 per cent of the spare parts would be kept in inventory at a fast moving Toronto PCD
Warehouse size: company-owned 160,000 sf facility (400W X 400L X 30H)
20% occupied by racking staked to the ceiling
40,000 cubic feet in unused space if new racking is installed.
122 cars served across Canada and $20 million held in average inventory
24 hour of deliver from order receipt commitment with dealerships.
Targeted Service Level: 95% of accurate filed orders
Current Service Level: 93% of accurate filed