Supply Management Month on March, 2024: Masters in Acquisition vs. OperationsSupply Chain Management?

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Operations/Supply Chain Management

What is Supply Chain Management? How to relate vehicle exporting with it?

LBK, good question!

Supply chain management encompasses several different areas, any or all of which might apply to the business of exporting used vehicles overseas. Without knowing all the details, here are some of the thoughts.

Demand Planning - the first step to planning supply chain activities is to get an idea of the market demand. Local teams with a central management team should be able to look at historical sales, consider future market intelligence, and put together a volume plan for the future months. If the team can give an estimate of what the mix of different desired vehicles will be, even better.

Inventory Management - Planning the correct level of inventory is extremely difficult, especially with long lead times and lots of different product (vehicle) types. Some key concepts are to make sure that enough products are available at the selling point, which takes into account demand variability and supply lead times. Of course, too much inventory will likely lead to some non-moving products as well as tie up cash.

Replenishment Planning and Logistics Management - Based on the expected demand and the desired inventory positions, one should be able to calculate the need to ship vehicle overseas in advance. The idea is to anticipate demand and to place stock in the market to meet it. In this situation, logistics management is extremely crucial. It is very easy for product to become delayed by shipping companies, customs problems, etc. Crisp documentation and day-to-day tracking of intransit movements are key here.

Hopefully, that helps bring a bit of insight to your problem. If you would like to talk more, please look me up at www.hawkeyeplanner.com

Thanks! John

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