PREPARED BY | INSTITUTE NAME

HON
DA

SUPPLY CHAIN PROCESS

Table of Contents
EXECUTIVE SUMMARY................................................................................................. 2
INTRODUCTION........................................................................................................... 2
WIDER SUPPLY NETWORK........................................................................................ 3
NARRATION OF THE DIAGRAM..................................................................................... 5
Time period.......................................................................................................... 6
PROCESS.................................................................................................................... 7
FOUR VS OF THE OPERATIONS MANAGEMENT...........................................................8
VOLUME................................................................................................................... 8
VARIETY................................................................................................................... 8
VARIATION DIMENSION............................................................................................ 8
VISIBILITY PROCESS................................................................................................. 9
POSSIBLE PROCESSMAP........................................................................................ 10
NARRATION OF THE PROCESS MAP........................................................................10
CONCLUSION............................................................................................................ 11
REFERENCES............................................................................................................ 12

EXECUTIVE SUMMARY
Honda can also be recognize as the brand which can represent any class of
the society. One of the main factor that had allowed them to achieve their aims and
motives was the strategies that had been made related to the supply chain
processes that had allowed the firm to make the cost effective products which could
give them an advantage over the competitors. Honda had given their attention on
the procurement department and the channels which had make their supply cost
effective and efficient allowing them to gain capture the market share and position
the brand on the consumers minds.

INTRODUCTION
Honda is one of the well-known brands of the world which deals in the
manufacturing and supplying of the cars and motorcycles. They had started it
manufacturing process in the territory of United Kingdom since 1992 after
establishing its manufacturing department in Swindon located in the south west of
England. After establishing their manufacturing department the main focus they had
putted was in the supply chain department of the firm. Supply chain had always
been considered one of the main department for any manufacturing firm (GEMMA,
2014) as it allows the firm to maintain its inventory of the raw materials and the
channels a company uses to deliver the orders they had from the customers in
order to avoid any of the negativity to the positioning of their brand.

QUESTION 1

WIDER SUPPLY NETWORK

Honda is one of the leading manufacturers of the automobile in the market
which is operating worldwide. For that purpose they have to look for the supply
chain networks which can allow them to make the sure the presence of Honda
brand in all markets of the world. Considering the manufacturing department in
Swindon, England Honda had look for the network which could provide them with
proper supply chain operations in the maximum destinations (Jain & Rathee, 2013).
For that purpose they had done the contract with two of the most dominating
supply chain companies in the world they had been working with the firms for many
years. One of the spokesperson had mentioned that the relationships they had
grown to the extent of very high level. Those suppliers are Yusen Logistics and CEVA
Logistics who had been operating worldwide. They are providing the Honda Firm
with the benefit of giving the services globally. If Honda had to look for the
importing or exporting of the vehicles then they are available to the options of
availing the services of the global suppliers and the that is giving them the services
all around the globe and with the minimum rates. Also they have the plus point of
having the contacts related to the industry. They can benefit the company with the
immediate supply of the materials as they have the wider contacts throughout the
world. Hondas core is it supply chain in every part of the world. They use to provide
the elite designs with the lower rates to its customers with the complete set of
customer services. They had maintain the same strategy throughout the world. To
continue on with the same strategy they had to hire the supply chain networks that
can support them globally. The advantage other advantage they can have is to
make the availability of the parts they need for different locations. Like if they want

to import some material from Japan they have the option of the two main logistics
network of the world which can provide them with the raw materials or the parts I
the cheaper rates.Also they have the benefits of availing the services to deliver the
products nationwide to the customers (Hoek et al., 2001).
QUESTION NO 2
A)
INVENTORY MANAGEMENT
AND PURCHASING
DEPARTMENT

PLAN
SUPPLIER
A

SUPPLIER
B

FEEDBACK FROM
DEPARTMENTS

SCM PLANNING
DEPARTMENT

PLAN
SALES
DEPARTMENT

SCHEDUL
E

SCHEDUL
E

FEEDBACK

INVENTORY

CUSTOMER
INVENTORY

SUPPLIER
C

SUPPLIER
D

INBOUND
LOGISTICS

MANUFACTURING
PLANT

DEALER

WAREHOUSE

DISTRIBUT
ORS

B)
Honda had been working on improving the quality its supply chain network time to
time. Honda had witnessed the massive change in the transportation and other
operations of the supply chain. They had been looking for the changes that can
direct the benefits for the company. First step is to identify the needs for the parts of
the vehicles. The materials which are in need are highlighted. Then they use to ask

for the quotation from the suppliers which can provide them with the best products
with minimum rates. After the selection of the supplier they schedule the production
plan and then they schedule the order to be delivered to the plant (LUKI, 2013). It
is made sure that the material should not be having the storage time of more than
three hours so that they can be able to cancel the order of it is needed. The
materials is directly transported to the plant so it can be easy for the department to
save the storage cost. After manufacturing of the products it is being transported to
the assembly plant where all parts are being assembled and the finished product is
transported to the customer (Jain & Rathee, 2013).

NARRATION OF THE DIAGRAM

The above diagram shows the projected supply chain model of the companys operations.
In this diagram it had been shown that the company will start the procedure with the feedback
provided from the sales department. Sales personals are the representatives of the company that
are in touch with the customers and the people who are using the products of the company. They
also are the one who keep in touch with the dealers and the retailers of the company. So they
know the feedback and the suggestions from the customers. They also have the access to the
markets changing trends and the peoples mindsets. So the company will start the procedure by
taking the feedback and the overview of the market situation and the new trends going on. So
they will be providing with the feedback and the timings also which will help the company to
schedule the timings to make the supply of the product in the market. Then after receiving the
feedback it will be decided from the supply chain management department related to the
arrangement of the manufacturing material the schedule of receiving the material I the inventory,
the timeline will be to place the order three days before manufacturing and it will be make sure

that to reduce the cost of storage the materials should be received two to three hours before the
manufacturing so it could be make sure that if the material is found not according to the standard
so it would be returned to the supplier. Through the inbound logistics the material would be
supplied to the manufacturing plant from where it will be distributed to the concerned
departments.
After the manufacturing the vehicles will be forwarded to the department of the storage
which is the warehouse and it will be make sure that after the inspection the vehicle will be sent
to the distributor from where it will be collected by the customer. Sales will contact the customer
and the distributors to collect the feedback and provide the company with the suggestions and the
future innovations and the creations. In the complete procedure every step is very important as it
is being decided that the steps are adding the value to the procedure. Sales department if is
providing the feedback then the supply chain had make the ways which are saving the costs and
they are making the procedure efficient (Ogle, 2014)
Time period
Time period which will is decided is that the sales department will be
given a time period of a month to collect and gather the information and the
feedback regarding the vehicle and then the supply chain will be making the
strategy. Next step will be of order making it which will be according to the plan that
the order will be placed three days before manufacturing and the order will be
received two to three hours before manufacturing. It will take one complete day for
the cat to get assemble and the next day it will be inspected and will be sent to the
dealer (Vasquez, 2012).
3)

PACKAGE:
Honda is one of the well-known brands of the world which deals in the
manufacturing and supplying of the cars and motorcycles. They had started it
manufacturing process in the territory of United Kingdom since 1992 after
establishing its manufacturing department in Swindon located in the south west of
England. After establishing their manufacturing department the main focus they had
putted was in the supply chain department of the firm. Supply chain had always
been considered one of the main department for any manufacturing firm (GEMMA,
2014) as it allows the firm to maintain its inventory of the raw materials and the
channels a company uses to deliver the orders they had from the customers in
order to avoid any of the negativity to the positioning of their brand (Myerson,
2013).
The package is something which is defined as the complete set of the
features which are given in the vehicles of Honda and also it includes the after sales
service. Honda is providing the complete package to the customers in every aspect
either in the pricing aspects or in the features which had been provided to the
customers. It had been in the uniqueness that the Honda is providing the customers
with the elite package they can enjoy. Also they are providing the customers with
the option of customization of their desired and chosen products which they are
allowed to add or subtract any of the features in the cars. Other thing which is
included in it is the after sales services and the spare parts of the vehicles, their
presence and the affordability (Rostamy et al., 2013).

PROCESS
Honda is among the companies who are using the theory of zero tolerance
with respect to the quality and the prices. According to the Honda theory these are
the main factors which build the customer satisfaction. Other main benefit they are
having is of the feedback which they can have through the suppliers and the
distributors. They follow the theory that a customer will come to the distributor to
complain about any defect in the car which is forwarded to the company to the
concerned person which can be acted upon immediately. Supply chain when is
considered or the strategies are being made for the companies supply chain then its
benefit can be seen in the bigger picture (Cuthbertson & Piotrowicz, 2011).
Honda is having the processes of the product in different manner that before
manufacturing of such products, Honda is being provided with the order and the
complete information of the requirement of the products which is being ordered by
the customer. The customer is being informed by the dealer and the company about
the additional charges and after the confirmation it has been confirmed regarding
the order manufacturing. Once the order is being delivered to the customer a day
time is given to the customer to check the order and to get back if any discrepancy
is found.
b)

FOUR VS OF THE OPERATIONS MANAGEMENT

Operations of any company have the chart of the four Vs which are the,

VOLUME
Honda is manufacturing the product which is in the basis of the high volume
and the low cost. The features which are being provided to the customers is
according to the elite products and the pricing strategy is relatively lower as they
are able to cut the costs from many of the operations.

VARIETY
Honda had looked for increasing the variety of the products in the markets
and the services related to the product. They had allowed the customer to ask for
the customizations to the car and to choose the prices of the cars themselves by
choosing the features to enter or subtract from the car.

VARIATION DIMENSION
Honda is providing the customers to look at the vehicle before making the
order. The same facility is being provided to the manufacturers and designers when
they are manufacturing thevehicle. It had been kept in the noticed that customers
should be having the insight of the product they are purchasing and paying for.

VISIBILITY PROCESS
Honda had provided the complete procedure related to the manufacturing
process of the vehicle on their website and also it had been given the opportunity to
the customers that they can hve the information about the vehicles manufacturing
form the company by telling the order number.
4)
According to me the greatest waste of the company is the inventory
management. It had been noticed that mostly the car are being manufactured pre

orderly. Some of them are not be able to sold out. That had put the additional cost
on the company. I will be looking for the issues and the steps which can be able to
look for the orders and the manufacturing the vehicle after the order. My strategy
would be to make the customers to make the orders the sample cars will be there
show the customers to provide them with the insight of the vehicle they are
purchasing. This could help in two ways to the company. Additional cost of the
company for the manufacturing the product will be decreased and the also the labor
cost could be decreased. I will include the step of obtaining the orders before
manufacturing of the vehicle.

POSSIBLE

SUPPLIER
A

SUPPLIER
B

PROCESSMAP

INVENTORY MANAGEMENT
AND PURCHASING
DEPARTMENT

SCM PLANNING
DEPARTMENT

PLAN

PLAN

FEEDBACK FROM
DEPARTMENTS

SALES
DEPARTMENT

SCHEDUL
E

SCHEDUL
E

FEEDBACK

INVENTORY

ORDE
R

SUPPLIER
C

SUPPLIER
D

INBOUND
LOGISTICS

MANUFACTURING
PLANT

CUSTOMER

DEALER

WAREHOUSE

INVENTORY

DISTRIBUT
ORS

NARRATION OF THE PROCESS MAP

The process would remain same as to the previous process. The addition
would be the order given by the customers to the sales person or the sales
department. There will not be any unit which will be produced without order. The
dealer will be collecting the order on the bulk basis. He or She will be allowed to
forward the order once the quantity of the orders will exceed ten. The company will
start the process of manufacturing once the order bank will give the order of 100
cars.
Supply chain had always been the core to the Honda company as they are
the automobile manufacturers and they had to position its brand as economical
which can represent the class as well as it has to be affordable. Honda strategy is to
make the purchase of the raw materials of highest quality with the lowest rates that

could allow them to manufacture the product which could be cost effective to them.
Honda had use the supply chain as the analytic tools to maintain its market. One of
the main strategies they had made is related to the procurement and inventory
management allowing the company to put the benefit on the cost structure and the
availability of the materials to product manufacturing. Other main benefit they had
put is on the channels they had to use for the supply of the products and make sure
the availability of the product in the market.Honda has always put there great
impact on the quality and the availability of their products (Ahmed, 2012).

CONCLUSION
Honda is one of the most well-known brand in the market. They are
competing in the market through its supply chain strategies which had been the
hardcore of their plannings. Honda had always been able to create the outstanding
approach to provide the customer service to its customers. They had enhanced their
supply chain department by hiring the most dominating supply chain companies in
the market. They are able to save much of its cost by saving the cost from the
storage and the transportation as they use to schedule the materials to reach to
directly to the manufacturing department and just three hours earlier. They had
made one of the most aggressive strategies which had made them able to compete
in the market and to maintain its position in the market.

REFERENCES
Ahmed, M.a.L.H., 2012. "Supplier development literature review and key future
research areas. International Journal of Engineering and Technology Innovation,
2(4), pp.203-303.
Cuthbertson, R. & Piotrowicz, W., 2011. Performance measurement systems in
supply chains: a framework for contextual analysis. International Journal of
Productivity and Performance Management, 60(6), pp.583-602.
GEMMA, W., 2014. Importance Of Supply Chain Management. Bigger Than Business,
17 April. pp.1-2.
Hoek, I.v., Remko, Harrison, A. & Christopher, M., 2001. Measuring agile capabilities
in the supply chain. International Journal of Operations & Production Management ,
1(2), pp.126-48.
Jain, K. & Rathee, S., 2013. Supply Chain Management;Its Importance in Todays
Business. Global International Research Thoughts (GIRT), 1(1), pp.60-66.
LUKI, R., 2013. Sustainable Cost Management in Retail. Review of International
Comparative Management, 14(2), pp.268-80.
Myerson, P., 2013. Supply Chain Analytics. What is it and Why is it so Important?, 15
May. pp.1-5.
Ogle, S., 2014. From beginning to end. Sam Ogle looks at the Honda UK supply
chain, both inbound and outbound., 08 April. pp.1-2.
Rostamy, Anvary, A.A., Shaverdi, M. & Ramezani, I., 2013. "Green Supply Chain
Management Evaluation in Publishing Industry Based on Fuzzy AHP Approach.
Journal of Logistics Management , 2(1), pp.9-14.
Vasquez, M.A.F., 2012. THE ROLE OF TRUST, LONGEVITY AND INTERDEPENDENCY IN
SUPPLY CHAIN RELATIONSHIPS. Journal of International Business Management &
Research, 1(1), p.19.