BMW Case Study Analysis
BMW is preparing to enter another “era” called “post-just-in-time” manufacturing. The idea driving this new era is a new focus on the importance of suppliers of BMW.
This focus is designed to make ordering BMWs as easy as possible for new BMW owners. This plan involves everything from redesigning the body shop in the South Carolina plant to tools ordering for dealerships. The body shop changes involve redesigning car models such that, differences in body structures is minimal.
Other changes involve the manner in which VIN numbers are assigned such that customers have more time to make changes to their orders and add production flexibility. European dealerships are using a new streamlined computer ordering
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Global expansion has a major impact on any company’s capacity measurement and e-business has everything to do with it. When automakers in the US decided to sell their wares abroad, they greatly expanded their customer-base from about 300 million to about 5 billion. The same impact holds true for BMW when they decided to sell their cars outside of Germany. US car buyers see BMW vehicle as more than just cars. They see BMWs as status symbols that embody quality and craftsmanship. E-business assists BMW in bringing their cars to customers who would not normally be able to just rundown to the nearest dealership. Customer could now, simply log onto the BMW website, customize the BMW model of their choice and hit send. Magically, their order will be sent to the nearest production facility and thus production of their new BMW begins. Within a couple of weeks, they are driving down the road in their new BMW. This would not have been possible 20 years ago or possibly, even 10 years ago. E-business has sped up everything having to do with commerce and made globalization a fierce reality.
E-business in the global supply chain provides several things. E-business provides speed. A customer can enter a dealership, pick out the model they desire, sit down with a sales representative, customize the BMW they have chosen and before they leave the dealership, the closest manufacturing plant is already