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Auto Logistics and Supply Chain Management Summit 2003;Agenda;;Supply chain management (SCM) is the strategic management tool that coordinates the material and information flows across the value chain to support adaptiveness;“Demand-pull” value chain requires the companies to be flexible and able to “control” a large part or the entire supply chain;Third-party logistics providers (3PLs) can directly, or through a partner network, provide a range of services;Difference between traditional business model and VMI model;Simplest VMI workflow;Consolidation and Loading Center is commonly used to reduce the complexity in coordinating multiple vendors;Win-win situation can be achieved for both manufacturers …;… and vendors;Currently, most automotive manufacturers in China consider Consignment Inventory as VMI;;To avoid the potential conflict between manufacturers and suppliers, an independent third party can be employed to help manage the VMI initiative;However, internal resistance against outsourcing the VMI service remains generally very strong ;A Chinese OEM outsourced its inbound logistics to China Logistics for operating assets, skills and better management;There are several different factors to consider in designing an appropriate inventory level;Current Operational Characteristics related to Materials Management;Major capacity and quality issues arises when 50% annual growth is anticipated;Project Roll-out Schedule
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