Achieving Strategic Improvements by Tackling Supply Chain Uncertainty. A lead time management analysis of an automotive manufacturer
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Typ
Examensarbete för masterexamen
Program
Quality and operations management (MPQOM), MSc
Publicerad
2022
Författare
Olvenmark Holmström, Ossian
Härdig, Johan
Modellbyggare
Tidskriftstitel
ISSN
Volymtitel
Utgivare
Sammanfattning
The automotive value chain is changing, and with that, the role of dealerships.
Traditionally, car manufacturers have sold their cars to dealerships who, in turn,
have been responsible for selling the cars to, and interacting with, the end customers.
However, with new direct-to-consumer business models relying on online sales, the
role of the dealership has transitioned from being a sales actor to becoming an
intermediary preparing the cars and performing the final handover. Consequently,
the car manufacturer’s supply chain has extended to include accountability of the
dealerships’ operations and the lead time resulting from these operations.
Based on internal investigations, the case company has identified what it perceives as
unnecessarily long lead times in the dealership part of the supply chain. Therefore,
the aim of this study was to provide insights and give recommendations regarding
how to cope with the lead times and operations at the dealership stage of the case
company’s supply chain. Accordingly, the study intended to support the work of
improving supply chain management at the case company.
The methodology of the study consisted of a preliminary analysis of the lead time issue,
coupled with interviewing select market representatives. Subsequently, a survey
was sent out to the same markets’ dealerships to make a complete and comprehensive
assessment of the situation before a final analysis, together with relevant literature,
of the results, was conducted. The approach was inspired by grounded theory in that
it relied on empirical data without taking a starting point in a possible explanation.
The analysis of the results points to uncertainties in lead times and quality, information
flow, and customer adaptation, together with a lack of standardisation and
directives. In particular, supply chain uncertainty prompts a trade-off between lead
time and customer satisfaction since premature handover agreements with customers
may result in rescheduling and, thus, risk customer dissatisfaction. The study shows
that currently, customer satisfaction is prioritised in the trade-off.
To conclude, the study results in five recommendations: Reduce uncertainties by
improving reliability in lead times and quality, Develop guidelines on how to handle
the trade-off between lead times and customer satisfaction, Investigate the lead time
consequences of customer adaptation, Introduce coherent directives across markets,
and Standardise market processes.
Beskrivning
Ämne/nyckelord
Customer Satisfaction, Dealership, Information Flow, Lead Time, Supply Chain, Supply Chain Management, Supply Chain Uncertainty.