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Automotive Vs. Computers - Essay Example

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The paper is going to focus on Toyota and Dell as the products of these industries. Toyota has in the past been depending on its o its major supplier in Japan. However, Toyota being the current leading automotive supplier of cars in the world embarked on a competitive strategy that involved the production of quality cars hence utilized a reliable approach. In addition, Toyota’s supply chain called for responsiveness and efficiency. Moreover, its supply chain necessitates decentralization therefore many production units in various locations all over the world. However, these decentralized units must also the interlinked. This ensures that information flows consecutively throughout all available units. In fact there are four key feature of Toyota’s supply chain. These features include, inventory, transportation, facility and information. Therefore, it is prudent to conclude that Toyota involves numerous production plants; a number of storage facilities, a well-defined transportation mechanism, and reliable information relaying procedures.
( Dudovskiy). This chain ensures that the end consumer gets a quality product and on time regardless of their location since decentralization takes care of it. On the other hand, Dell relies on an exceptional supply chain whose strategy depends on information gathering from its large customer capacity. As such, Dell uses a direct- sale strategy and the information attained are passed on to both the sales and the procurement sections in addition to its external suppliers. The advantage of an information approach strategy is that it allows for timely supply of the product. More so Dell has identified two channels, through which information is acquired such as amongst the customers and the sales personnel’s, and equally, amidst the sales, procurement and suppliers departments. Hence, this approach has helps the company to sell its products in large quantities and with required quality since there is information flow (Gilmore). The automotive industry can be said to stick to its unique supply chain because of the nature of its product. Automotive is bulky, this makes expensive to assemble in a single location. Moreover, car models are rigid to change because there are a variety of models that a customer can chose from. More so, car parts are expensive to make hence changing any part will most likely result to recalling all previously produced vehicles. Therefore, an automotive industry remains competitive only if it produces different car model that suits the needs of its many customers. In addition, the quality, engine performance and fuel consumption are the factors that customers are after in any car mode. Therefore it is only through decentralization that an automotive producer can understand well the needs and requirements of the market. On the contrary, computer producers are better place to use an interactive supply chain approach because their products can be produced from a central location and easily transported to the consumers. Hence, such companies will invest more in both the sales and procurement teams to get the market requirements and they will deliver easily on such demands. Consequently, this is an industry that deals more with technology hence they are aware that technology is dynamic. When it comes to the product, the producer mainly evaluates the production cost. In this regards, automotive produce ...Show more
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Summary

In order for one to get a better understanding of the various supply chains and feature causing the variance in the supply chain, this paper in going to evaluate two products in different industries. The subject industries are the automotive and the computer producers. …
Automotive Vs. Computers
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