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    BMW Supply Chain Now

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    BMW Supply Chain Now

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    2K views26 pages

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    bmw supply chain now

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    2K views26 pages

    BMW Supply Chain Now

    Uploaded by

    api-239652082

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 26

    BMW Original Supply Chain

    The whole system depends on the weakest element, so we try to keep the whole chain in mind. -Wolfgang Rudorfer, Head of Logistics Planning

    Early 2013
    Through the first two months of 2013, BMW group had delivered 256,929 cars More than the first two months of any year before. Outperformed the market in almost every region. These kinds of results could only be achieved with an efficient and affective supply chain.

    Supplier to Factory
    Picture Because each product is so unique, they have numerous suppliers, as well as factories. Recently increased monitoring on lower tier suppliers for emergency situations They use multi-modal transportation and cross-docking for their materials, enabling them to maximize regional efficiency Utilize logistics service providers to maximize efficiency within 1,000 km of facilities

    Just in Sequence
    Due to the fact that we are a build-to-order manufacturer and that we have an increasing number of configuration varieties in cars we have to use justin-sequence supply.- Rudorfer Picture

    Factory-to-Dealer
    BMW outsources part of its supply chain operation to a logistics company named Wallenius Wilhelmsen Logistics (WWL) They took control of every BMW car from the time it was finished in the factory until it was delivered to the show room. WWLs connections and expertise in transportation systems allowed BMW to significantly reduce wait times, and gave them a single point of contact for this section of their supply chain.

    BMWs ATLAS System


    New global parts system ATLAS stands for Advanced parTs Logistics in After Sales

    ATLAS Project Goals

    - Business Process Improvements - Designed to improve the delivery of parts to distribution centers - BMW has 40 parts-distribution centers originating at the Dingolfing facility. - Dingolfing facility also supplies 300 repair shops in Germany.

    ATLAS Project Advising

    -Infosys Lodestone is a Swiss consulting firm that specializes in SAP business solutions -They worked on the ATLAS system, advising BMW on the implementation of the project

    -According to their website, it is listed as a success story


    http://www.lodestonemc.com/files/pdf/success_stories/SS_BMW_ATLASWholesale_120709.pdf

    ATLAS Project Goals


    -Vertical integration of parts business -Improve parts availability -Reduce costs -Improve inventory management

    -Standardize the system across all networks

    What went wrong?


    -IBM and SAP started work on ATLAS in 2009 -Target Completion Date 3 Years -Implemented in June (About 4 years from start) -Due to changeover 10% of parts unavailable -The central facility is the origin of all orders -Shortages in Europe, the US, South Africa and Asia

    BMWs Response

    BMW spokesperson, The originally envisioned time frame for completion of the project had been somewhat postponed a while back as some parameters had changed, Winkler said, without providing additional details. BMW declined to comment on its suppliers IBM is no longer involved in the project

    BMWs Response
    -

    BMW has workers on extra shifts to help shorten the parts wait -They aim to have the new system working properly by early September What has this one implementation problem led to around the globe?

    Ripple Effect

    Implications of the supply chain failure (Ryan)

    Implications of Supply Chain Fail


    Direct vs Indirect

    Bullwhip Effect
    The delays have caused ripple effects globally because orders for Munich-based

    BMWs 40 parts-distribution centers originate at the main facility in Dingolfing.

    Centralization vs Decentralization
    (http://www.bloomberg.com/news/2013-08-27/bmw-ownersvent-anger-atmonths-long-wait-for-spare-parts.html) http://www.motoringalliance.com/forums/mini-stuff/19107parts-shortages-bmwhas-supply-chain-breakdown.html -Mini parts are out of reach as well cent vs decent. effects mini managment even though its not mini problem

    Equity Hit
    BMW shares dropped 1.25 euros, or 1.7 percent, to 71.75 euros at the http://en.wikipedia.org/wiki/I_would_rather_cry_in_a_BMW -Interesting brand Juergen Pieper, a Bankhaus Metzler analyst in Frankfurt. Damage has certainly occurred. I see a hit to their reputation and a financial burden of tens of millions. http://www.bloomberg.com/news/2013-09-10/bmw-to-fix-supply-chain-delays-bymonth-s-end-executives-say.html

    Customer Satisfaction
    Trust, what happened to it? Decrease in brand name I have always been a die-hard BMW driver and am currently driving my seventh The logistics problem is comprehensible, but three months is too long, said close of trading inFrankfurt. (http://www.bloomberg.com/news/2013-08-27/ bmw-owners-vent-anger-at-months-long-wait-for-spare-parts.html) implications

    BMW, but will consider which brand Ill buy the next time, he said by phone. For
    a premium carmaker like BMW, this is particularly disappointing.

    BMW Supply Chain Now


    Over 12,000 suppliers in 70 countries Sustainability and use of resources Since 2009 they have been coming up with different performance indicators to show the worth of suppliers etc. Societal responsibilities

    2010 Expansion
    Invested $750 million into a plant in Spartanburg, South Carolina Increased production by 50% and added 1000 workers The plant has more workers than any car manufacturing plant in Detroit 70% of its output is shipped outside the United States

    2013 Expansion
    Making a 413,000 square foot facility near a new port in Greer $900 million Expand Production of BMW X5 BMW partnered with Syncreon

    NAFTA stands for North America Free Trade Agreement

    The Issue
    IBM was the main contractor and decided to completely end the project with BMW BMW was down ten percent of materials needed IBM declined to answer reasons for their decision

    Areas To Be Improved
    Business to Business Communications Implementing/Improving the System Increased responsibilities Plan B

    Bibliography

    http://www.2wglobal.com/www/aboutUs/cases/Supportingdocs/WWL_casestudy_BMW.pdf http://www.automotivesupplychain.org/features/184/77/BMW-optimises-supply-chain-as-sales-continue-to-rise/ http://www.apriso.com/products/flexnet_production/just-in-sequence.php http://www.2wglobal.com/www/aboutUs/cases/Supportingdocs/WWL_casestudy_BMW.pdf www.bmwgroup.com/bmwgroup_prod/e/0_0_www_bmwgroup_com/produktion/produktionsnetzwerk/produktionsstand orte/produktionsstandorte.shtml http://www.automotivelogisticsmagazine.com/news/bmw-pressed-for-time-as-supply-chain-handover-fails http://www.bloomberg.com/news/2013-09-10/bmw-to-fix-supply-chain-delays-by-month-s-end-executives-say.html http://www.motoringalliance.com/forums/mini-stuff/19107-parts-shortages-bmw-has-supply-chain-breakdown.html http://www.bloomberg.com/news/2013-08-27/bmw-owners-vent-anger-at-months-long-wait-for-spare-parts.html

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