In order to provide competitive advantage and competing with your competitors, the resources and operations, that are required to flow the product along the supply chain from raw material to finished product and ultimately the customer. Doing this can also reduce cost and improve operational effectiveness. At the beginner, problems need to tackle in order to implement solutions to solve out and streamline product or services. Since the automotive market is already so large, the aggregation benefits of the Internet are relatively small in this industry.
(In contrast, aggregation benefits have already proven to be substantial for specialized markets, such as used books or industrial equipment. ) On the other hand, the information-exchange aspects of the web have huge potential in this industry. The reason is the vast amount of coordination necessary to manage the design, production, and assembly of thousands of parts into each of millions of vehicles every year. Auto dealers are already coping with the consequences of Internet-informed consumers and a host of dot.
com intermediaries that are challenging the traditional retailing model. Supplier relationships may be even more dramatically transformed by the recently-announced industry consortium backing a gigantic e-procurement website known as Covisint. Increasely, companies are providing more and more variety in their products and services to attract and retain customers. So “mass customisation” is a key word for which has been building to meet customers’ individual order rather than for stock.
Mass customisation can be defined as the provision of customised products and services using stable business processes, at a cost and fulfilment time similar to standard, or mass produced products. In order to deliver product fast, mass customisers need flow manufacturing to make product fast in small quantities and a spontaneous supply chain which can assure spontaneous availability of materials and make parts on demand. Benchmarking is the continuous search for and adaptation of significantly better practices that leads to superior performance by investigating the performance and practices of other organisations (benchmark partners).
In addition, it can create a crisis to facilitate the change process. Benchmarking goes beyond comparisons with competitors to understanding the practices that lie behind the performance gaps. It is not a method for ‘copying’ the practices of competitors, but a way of seeking superior process performance by looking outside the industry. Benchmarking makes it possible to gain competitive superiority rather than competitive parity. The term benchmark refers to the reference point by which performance is measured against.
It is the indicator of what can and is being achieved. The term benchmarking refers to the actual activity of establishing benchmarks and ‘best’ practices. Spontaneous build-to-order (BTO) is the capacity to quick build standard or mass-customised products upon receipt orders without forecasts, inventory, or purchasing delays. These products may be shipped directly to individual customers, to stores or dealers, or as a response to assemblers’ “pull signals”.
The basic strategies for implementing spontaneous BTO are supply chain simplification, concurrent design of versatile products and flexible process, the mass customisation of variety, and the development of a spontaneous supply chain. The goal of supply chain simplification is to drastically reducte the variety of parts and raw materials to the point where these materials can be procured spontaneously by automatic and bull-based resupply techniques. So reducing the part and material variety will also shrink the supplier base, as well as the supply chain.