Jason Hancock
Logistics Management
Instructor: Cheryl SteptoeSimon
Saturn Corporation Essay
Saturn Corporation
Supply chain management plays a very important role in the success of manufacturers in the changing economy. As fast as the demands from consumers change a manufacturer must be able to adapt to those changes and make the necessary changes within their company to continue to serve and meet the needs that are expected of them. There are five major external forces that continue to drive the rate of change: globalization, technology, organizational consolidation, the empowered consumer, and government policy and regulation. Technology has enhanced the power of the consumers by allowing vast amounts …show more content…
The faster the goods can be shipped the faster the customers can be billed and the companies can collect sooner. Saturn is among the GM leaders in outbound transportation performance including highest percentage of vehicles dispatched within 72 hours of production and lowest frequency of post-production damage. This allows for a quick turn around on cash flow for Saturn and the fact they are the lowest frequency of post-production damage makes the cost of re-work very minimal. Demand Flow is continually changing. The technology that Saturn has available allows the supply chain managers to better synchronize supply and demand by detecting and understanding demand signals and making the appropriate adjustments to demand changes more effectively. It is vital for the management team at Saturn Co. to use the tools they have to forecast the demand for their product. Utilizing the JIT approach and properly forecasting the demand Saturn will be able to be cost effective and use the proper resources when and where they are …show more content…
This is the time from when the customer places the order until the customer receives the order. Saturn Corporation has problems with the special customer order. Customer service is vital to the success of the business so they need to find a way to minimize the late dates on Order fulfillment. Customers will accept late projected dates up to six weeks but the retailers need to find a way to be able to provide firm, dependable delivery dates to provide to their customers. Saturn needs to implement items such as Radio Frequency Identification (RFID) tags to help track equipment and shipments so retailers can set better dates for their customers. Transit time consistency would also help Saturn Co. with being able to provide a better date for their customers. Transit time impacts inventory availability, stock out costs, and customer satisfaction. Transit time includes the time required for pickup activities, terminal handling, line haul movement, and customer delivery. The fact that Saturn has built its complex within 600 miles of over half of the country’s population means they can use truck transport for most of the transportation needs which is much faster than rail. The long hauls across the country will have to utilize rail but with proper order fulfillment they retailers will be able to give their customers better dependable dates as to when they will receive their car. Order
Logistics Management
Instructor: Cheryl SteptoeSimon
Saturn Corporation Essay
Saturn Corporation
Supply chain management plays a very important role in the success of manufacturers in the changing economy. As fast as the demands from consumers change a manufacturer must be able to adapt to those changes and make the necessary changes within their company to continue to serve and meet the needs that are expected of them. There are five major external forces that continue to drive the rate of change: globalization, technology, organizational consolidation, the empowered consumer, and government policy and regulation. Technology has enhanced the power of the consumers by allowing vast amounts …show more content…
The faster the goods can be shipped the faster the customers can be billed and the companies can collect sooner. Saturn is among the GM leaders in outbound transportation performance including highest percentage of vehicles dispatched within 72 hours of production and lowest frequency of post-production damage. This allows for a quick turn around on cash flow for Saturn and the fact they are the lowest frequency of post-production damage makes the cost of re-work very minimal. Demand Flow is continually changing. The technology that Saturn has available allows the supply chain managers to better synchronize supply and demand by detecting and understanding demand signals and making the appropriate adjustments to demand changes more effectively. It is vital for the management team at Saturn Co. to use the tools they have to forecast the demand for their product. Utilizing the JIT approach and properly forecasting the demand Saturn will be able to be cost effective and use the proper resources when and where they are …show more content…
This is the time from when the customer places the order until the customer receives the order. Saturn Corporation has problems with the special customer order. Customer service is vital to the success of the business so they need to find a way to minimize the late dates on Order fulfillment. Customers will accept late projected dates up to six weeks but the retailers need to find a way to be able to provide firm, dependable delivery dates to provide to their customers. Saturn needs to implement items such as Radio Frequency Identification (RFID) tags to help track equipment and shipments so retailers can set better dates for their customers. Transit time consistency would also help Saturn Co. with being able to provide a better date for their customers. Transit time impacts inventory availability, stock out costs, and customer satisfaction. Transit time includes the time required for pickup activities, terminal handling, line haul movement, and customer delivery. The fact that Saturn has built its complex within 600 miles of over half of the country’s population means they can use truck transport for most of the transportation needs which is much faster than rail. The long hauls across the country will have to utilize rail but with proper order fulfillment they retailers will be able to give their customers better dependable dates as to when they will receive their car. Order