? Review "Autoliv profile: Applying Rocket Science to the Supply Chain" on pages 39-48. (Refer to this link http://lvk.cs.msu.su/~antiw/McGraw-Hill.Strategic.Supply.Chain.Management.The.Five.Disciplines.For.Top.Performance.ISBN0071432175.pdf)
? Describe the problems Autoliv faced in the supply chain prior to their transformation, and respond to the following questions:
? Was Autoliv's goal to minimize custom products and to increase standardized products the root cause of Autoliv's price squeeze with its customers? If not, what caused the problem?
? Did that strategy impede Autoliv's supply chain improvements?
Describe how Autoliv resolved those problems to develop a more effective and efficient global operations and supply chain process, and respond to the following questions:
? Has a supply base providing over 60% of total manufacturing costs impeded Autoliv's ability to fully transform its manufacturing and supply systems? If so, how?
? If not, why would it require ten years to fully transform Autoliv's manufacturing and supply systems?
? Does product standardization lead to products becoming commodities?
? Is that an effective long term strategy? Why or why not?
Description of the Problems Faced By Autoliv Company:
The Autoliv Company is known to be the world's largest manufacturing company for the auto safety systems. The large target market that is held by the organization has caused the organization to stretch to more than 30 nations. The mergers that have been created by the organization have boosted the profit margins of the corporation. The operations of the company as it is aimed to capture a third of the global market was caused by the constant price pressures from the automakers. All these company activities were faced with problems when the corporation encountered a lot of stress from the external market forces. The annual price reductions were experienced by the company was caused by the big multinational competitors. In the supply chain systems that run from the diverse operating business units experienced problems where it was not able to meet the needs of the esteemed clients in the market. The economic slowdown also impeded the functions of the supply systems of the corporation causing it to stretch to a breakeven point. This occurred due to the reduction in the demand levels of the Autoliv commodities (Roussel, et all 2005).
The price levels of the general products from the company were falling causing the organization to create major modes of saving costs so as to maintain their profit trends in the market economy. This technique was adopted by the organization to ensure that the organization maintained the shareholder values and still maintain the funding innovation (Turner, et all 2002).
The Goals That Were Created By the Organization:
The economic slowdown that was experienced by the organization made the company to take stringent measures to ensure that they maintained their profit margins. The company was aimed at reducing the costs of the commodities without reducing the ...
The problems Autoliv faced in the supply chain prior to transformation is determined.