Evaluating Supply Chain Management in the Volkswagon Brazil resende

The RESENDE manufacturer of Volkswagen company in BRAZIL brought revolution in the automobile industry around the world the manufacturing plant has totally unique resource string model and was first of its kind. The resend flower was also called the rebirth of Volkswagen company as following the Automobile Latina was ended between Volkswagen and ford as Volkswagen company has no factory to make its vehicles and buses so resend was built in Brazil in 1995. The Volkswagen has around 400 suppliers who use to supply different extra parts for the processing of vehicles and buses the Brazilian market was well-known for Volkswagen pickup trucks and buses, Volkswagen company minimize their suppliers to 8 and then had contracts with them, the complete theme of Resende manufacturer was a Modular consortium, the eight suppliers would be to arrive with the resources and then repairing that is assembling it up, it was such as a mini retailers they own inside the stock that is they were the producer and the as the assembling was done by them, this model was very new to supply chain that was applied there, no worker of Volkswagen company was there except the quality control as it is one of the important factor to check on. The supply chain model helped those to minimize their labor cost and present them advantage to market their buses n pickup trucks at lower price that the way they made their customers and the competitors were not able to lower their prices as these were processing the parts as well as assembling them the great thing about Volkswagen Resende place was that they were selecting labor at cheap costs which helped them to cut their cost. Just as the factory began operating the most crucial person was obligated to leave the organization as the Jos Ignacio Lpez de Arriorta was dealing with gm and still left gm joined up with Volkswagen. As when they started with the resend factory the claim do by Volkswagen was lawfully accepted ant Volkswagen paid an adequate amount for it as gm got did the claim that lopes kept gm with some important documents lacking and data as they said he spy us and the resend stock was more like their idea which Jos Ignacio Lpez de Arriorta began their so just at the start the top question symbol was with this stock, moreover Jos Ignacio Lpez de Arriorta was obligated to resign and acquired left the business leaving the post of operation management that was a loss to the stock and have the best importance to the resend stock.

VWs supply chain strategy regarding to Michael Porters proper framework
The Resende manufacturer of Volkswagen company known as the rebirth of Volkswagen company set up in Brazil known as modular consortium was very unique in sense of source chain as completely new frame work was being applied to it as it was a junction where all suppliers of different companies come and constitute the complete product (pickup trucks and buses) that is they work in a manner that there were different suppliers who had been mentioning the elements of trucks and assembling them up that is suppliers were also the labors and was in charge of the development as well as assembling the pickup trucks and buses they come and work in the stock. Discussing about supply chain model employed by Volkswagen company in their Resende manufacturing plant was a totally new supply string strategy in case we talk about it in the light of Michale Porters proper frame work it would be as follows
The threat of the entrance of new opponents

The Resende manufacturing plant of Volkswagen company was the first one in entire automobile industry having this type of supply chain model that is a modular consortium model. The primary point of interest to the auto world was the management of procedures in the plant as the seed was first of its type moreover you can take it as an experiment so at that point of their time the risk of a new competition to enter was up to 0%. As the idea has bring revolution in the original supply string strategies in auto industry so at the beginning the competitor was not at all the threat but the execution of the source string model could create hazards as just at the start the companys operation manger left so the competition are always looking for something which they can use as an edge to its competitor.

The power of competitive rivalry

The strength of competitive rivalry was there in the form of General Motor for Volkswagen Company because of their lawsuit. the operation manger Jos Ignacio Lpez de Arriorta remaining so at that time things become problematic for them but Volkswagen mange it successfully moreover the suppliers that was the primary theme of the Resende factory the modular consortium was all about the supplier that was cut down to eight from 500 they need to be considered a good and strong bonding with them as though any one of them left the trucks and buses would be hard to finish as the business has no herb to produce the products after their joint venture with ford ended so the suppliers were very important to Volkswagen. The another competitive gain competition of Volkswagen experienced was that the suppliers with Volkswagen was due to the romantic relationship of Jos Ignacio Lpez de Arriorta as generally speaking electric motor he was the director of Latin America point out so he use his reference point in Volkswagen company so he was required to resign from the company the suppliers can also leave but fortunately this never occurred and the Resende manufacturer known as rebirth to Volkswagen provide a new life to Volkswagen company indeed.

The risk of substitute products

The threat of substitute was there in Brazil as it was the largest market of all and Volkswagen companys the Resende factory was a completely new part of the industry of auto industry moreover the supply string strategy they used was the first ever to be used in any factory the initial idea they applied proved helpful to them as they didnt had any worker of Volkswagen company to work in the plant it was totally outsourced place as the suppliers was also the labor not only in charge of providing the parts moreover mending them up as it was a entirely new strategy of resource chain executed by the Volkswagen company. The sole people by Volkswagen company were the quality control departments they were responsible to provide the perfect quality so that their vehicles and buses be the power to the business not the strength of the competition this model of supply chain proved helpful and helped Volkswagen to minimize its labor cost which help them to lessen their prices in comparison to its competitors therefore the threat of a substitute was around 0% as the competitors were manufacturing their trucks plus they cannot lower their prices so Volkswagen company was going good.

The bargaining vitality of customers (potential buyers)

The Resende manufacturer of the Volkswagen company was a groundbreaking factory for the entire world the seed was by using a supply chain strategy that basically help them in producing earnings as they slice their suppliers from 400 to 8 plus they were the suppliers as well as the assemblers for the pickup trucks and buses if any part for not properly fitted or possessed a problem the loss would be barred by the supplier the Volkswagen company were producing revenues from the supply chain strategy they have got implemented in the place additionally if we talk about the barging ability of the customers we can say that the stock was saving too much to Volkswagen company as their cost have lower down a lot to allow them to give the pickup trucks and buses at lower cost which was the thing that its competitors cannot compete as these were making up the merchandise independently and buyers were getting advantage for it they dont need to deal as the trucks and buses were already at lower costs. The customer were consistently getting at good gain on buying Volkswagen trucks and buses therefore the bargaining electricity of the buyer didnt affect much on the Volkswagen company.

The bargaining electric power of suppliers

As they decrease their suppliers from 500 to eight the suppliers working with them in the Resende factory would be having good relations with the Volkswagen company and more over they might be having some advantages to be the area of the Resende factory as they were suppose to produce the parts and assemble them up for Volkswagen company so there would be some interest of these also as these were the part of the Resende manufacturing plant and making up the vehicles and buses for Volkswagen company and this was giving an advantage on cost to the Volkswagen so their pickup trucks and buses were less in expense compared to others in the Brazilian market, Volkswagen company decided about any of it, as these were dealing with a good number of suppliers and above all they dont own any place to make the parts of the vehicle as they were totally out sourcing them and the operations as well as the assembling were done by the suppliers, they have been critises by one of the employee on just outsourcing everything, therefore they have to be very good at it and also have to implement the supply chain strategy very well more over there were no employee of Volkswagen company working there, so everyone working there under one roof covering would be wearing same standard having same salary plans and more over they dont want any labor union to be made up as these were catering the complete of brazil and the trucks were very famous around brazil.

Analyze the ways that VW could employ technology across the several supply chain operations.

As the Resende factory of Volkswagen was something really ground breaking and more unique was the source chain model put in place on the factory which was assembling of the vehicles as well as the creation was the duty of the suppliers, Jos Ignacio Lpez de Arriorta designed it so that no labor cost was to be incurred from Volkswagen company as there were no Volkswagen personnel mixed up in factory except the product quality control supervisors as the suppliers were bounded for adding the parts of vehicles and buses the factory is producing the technology they used or we can say that the source chain strategy they suggests in this stock was really doing work for them as they have got trim their cost in sense of labor cost moreover the assembling was no more there issue as now it was the condition of the suppliers. The Volkswagen company c use to employ the labor through lowest bidder and the new technology was working so excellent that they planned to apply this strategy of supply chain with their other factories in different elements of world and the benefit from this resource chain strategy is ideal for the developing countries as they may use the theory the modular consortium as it's the game of suppliers who are producing as well as assembling the vehicles and busses for the coffee lover and Volkswagen company is lowering its labor cost at good. The primary idea was like the contractors which were suppliers was totally responsible for making up the part which is required and repairing it perfectly as if the part built in or purchased not stay right than the business which was accountable for adding the part bare the loss the Volkswagen company were really creating revenues with the factory, in the stock there have been around eight suppliers who were operating there tiny shops in the manufacturer the company was able to get items in low rates so they can sell the busses and trucks at good deal and attract the customers towards them and the other rivals of Volkswagen company was not able to be competitive as they were producing everything by them self which was hard for them to cut the costs and therefore cant lower the prices and that helped Volkswagen company to generate their revenues, and this supply chain strategy was successful for Volkswagen.

Evaluate current global resource chain challenges to the VW supply string model.

Global Supply Chain Challenges

At the Resende seed of Volkswagen totally new model of source chain was applied which was a risk because the Resende manufacturing plant was first in mother nature to its own additionally it was more important to Volkswagen as it was a rebirth to the Volkswagen company as their Auto Latina was ended so their factory at Brazil that is Resende was the only trust as they did not had any manufacturer to produce trucks and buses, the resource string model was a completely new idea on the market of car mobile Modular consortium just at the starting it experienced challenging to its survival in the form of its procedure manger Jos Ignacio Lpez de Arriorta kept because of some lawsuit between Volkswagen and General Motors.

Just in time inventory. various supply chain strategies can help an enterprise lessen their costs and focus on their main business that is there center competencies and moreover it slice the time waste material on looking forward to the suppliers and sometimes not perfect products can make company suffers a great deal and bear loss moreover they can take away your customers from you, can provide the competitive benefit to the other company that is your rival. There are several strategies for resource chain practiced by many organizations. Moreover there are several global resource chain difficulties.

The first challenge to the resend manufacturing plant was to stand having totally new model of source chain as the modular consortium was about the suppliers would be working as the labor in the factory no Volkswagen worker would be there plus they were suppose to execute the activity of suppliers as well as labor for the company this method reduce the cost of labor to the Volkswagen company additionally manufacturing all the parts were more costly than to just buy them up.

As the planet is moving so speedily technology is changing regarding time so as the new threats is there supply chain has a good expansion in arriving future as much companies working around the globe is not making up all its products there are things they provide and get resources to constitute their end product which plays an important role in the firms having their branches throughout world have to look for suppliers and the equipment they might be getting shouldn't increase their cost or reduce their core competence as the competition is very rough so therefore the source cost should not exceed as your revenue decrease.

As the VW supply string model was based on suppliers as if they lose the supplier their pickup truck was impossible to construct as they them self was not producing to that size as it was just like a junction where different suppliers were mentioning the part they create and assembling them which helped VW to trim their cost more over to market their pickup trucks and buses at low rates as compared to its rivals VW was facing some resource chain challenges as they were supplying all the parts and the suppliers were responsible for fixing them additionally in case there is damage they need to keep it if any there have been no blue collar employee of VW at the manufacturing plant except quality control as it was a point of which its competition can have benefits so the entire idea was a resource string game. Economic challenges was their moreover in case there is natural disaster these were the one who have to faced everything as the manufacturing plant was not producing anything so it was a concern to maintain a good relationships with their suppliers so they dont stand against them.


the supply string model faced troubles in the starting as the primary operation director Jos Ignacio Lpez de Arriorta was forced to leave the company because General Engine promises that Jos Ignacio Lpez de Arriorta has left the business with some very important documents moreover the resend factory was somewhat similar to a new job general engine was working so Jos Ignacio Lpez de Arriorta was required to leave the business, just at the beginning the Resende manufacturer faced a loss but the source chain model suits right and Volkswagen generated good revenue out of it and give out its pickup trucks and buses at low cost in comparison to other auto companies in brazil as the model helped those to cut their labor cost out of all the conflicts and issues the Resende faced it was successful by the end and the rebirth of Volkswagen succeeded.

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