Discover the Automobile Industry: BMW Supply Chain

BMW Supply Chain
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BMW Supply Chain
Introduction
The auto industry supply chain is differentiated by intricate franchise network of suppliers (tier 1 to tier 3). This network includes producers, dealers, distributors and logistic suppliers. The design of the car is made in an intricate manner where numerous parts are brought together to make the final product. According to Chopra and Meindl (2013), an ordinary car is comprised of nearly 20,000 parts and 10,000 main sections. On top of this, each vehicle manufacturer markets different models which must need regular up gradation. For this reason, Hines (2006) notes that the car supply chain must have a well-built and flexible production line, an efficient dealer and supply channel together with receptive sales and customer care section. With the rising completion in the automobile industry, the need for a competitive and robust supply chain has become a necessity. This paper analyzes the BMW supply chain with a view to establishing how it functions.
Founded in 1916, Bayerische Motoren Werke AG (BMW) is a German company that deals with the manufacture of cars as well as motorcycles. The company’s products are characterized by unique designs as well as high technology that make them popular. Together with their modernism and continual enhancement all the way through their supply chain has enabled them to gain a sizable portion of the auto market share not just in the developed nations but in the developing ones as well (Ogle, 2013).
The BMW’s supply chain process is structured in such a manner that it starts and ends with the customer. The supply chain utilizes a build to order system together with mass customization plan to offer cars according to customer requirements. Once a customer places an order, it is recorded in a central database. Using the modern technology, different details such as client preferences and the cost involved, the manufacturer remains in constant communication with the customer in order to reduce the order-to-delivery time. As Ogle (2013) notes, doing this helps the organization to be in command of the entire process. The technology helps the company to track and have accurate information of the inventory across the organization. With the use of such assimilated technologies between its dealers, manufacturers and distributors the company is able of presented the customized car to the manufacturer in the shortest period possible.
BMW has a big supplier network that consists of more than 12,000 suppliers across 70 nations. The company’s buying division is tasked with the selection, validation, evaluation as well as ensuring the quality assurance of the procured goods and services while at the same time ensuring that sustainability is guaranteed across the value chain. For this to be possible, the employees are offered training on the required level of quality and the mechanism of how to attain it. The main purchasing headquarter is situated in Munich but the company has various offices across the world that help in locating, validating and evaluating the capability of the local suppliers...