Supply Chain Design Considering Economies of Scale and Transport Frequencies

2010 ◽  
Author(s):  
Kerstin Baumgartner ◽  
André Fuetterer ◽  
Ulrich W. Thonemann
Keyword(s):  
Supply Chain ◽  
Economies Of Scale ◽  
Supply Chain Design

Lessons from CSCMP Supply Chain Hall of Famer Henry Ford and the research that they call for in modern supply chains

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Remko van Hoek
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Supply Chains ◽  
Economies Of Scale ◽  
Assembly Line ◽  
Supply Chain Design ◽  
Management Approach ◽  
Chain Management ◽  
Content Type ◽  
Henry Ford

PurposeThis paper considers CSCMP Supply Chain Hall of Famer Henry Ford's innovation and its transformative impact on supply chain management. Credited with the assembly line, Ford's innovation also included a supply chain design around the concept of flow, integrated supply and the enablement of economies of scale and productivity to drive down consumer prices and create affordable product for a growing market.Design/methodology/approachThis paper considers literature and builds upon the history of the innovation to consider supply chain implications and future opportunities to further the innovation into modern supply chains.FindingsFord did not “invent” the assembly line but he did build the supply chain around it. He stewarded core supply chain principles of great relevance well before they become popular, including a focus on lifelong learning, making failure safe, waste elimination and helping make the world a better place. There are many opportunities to continue to build upon the innovation for future supply chain success.Originality/valueThe supply chain field is sometimes said to be “historically challenged.” This paper reviews the essence and lessons learned from the assembly line and supply chain design and the leadership principles of Henry Ford and the Ford production system. We also connect leadership principles of the Ford supply chain to those of Ohno and Deming to map out the evolution of the Ford supply chain management approach over multiple decades and into the supply chain body of knowledge. Finally, we reflect upon how supply chain design aspects of the Ford supply chain may need to further evolve into the future. Based upon this reflection we recommend opportunities for further research and innovation that build upon the supply chain management roots provided by Henry Ford.

scholarly journals The implications of product modularisation on the development process, supplier integration and supply chain design in collaborative product development

2021 ◽  
Vol 16 (1) ◽  
pp. 82-98
Author(s):  
F. Koppenhagen ◽  
T. Held
Keyword(s):  
Supply Chain ◽  
Product Development ◽  
Systems Engineering ◽  
Development Process ◽  
Economies Of Scale ◽  
Supply Chain Design ◽  
Process Models ◽  
Supplier Integration ◽  
Product Systems ◽  
Modular Product

Generating economies of scale is one of the most desirable goals when developing modular product systems. Since complex products are commonly developed in collaboration between an Original Equipment Manufacturer (OEM) and its suppliers, pursuing this goal inherently establishes interdependencies between the development process, supplier integration and supply chain design. To fully reap the benefits of modular product systems requires a comprehensive approach that encompasses these fields and addresses the inter-dependencies between them via a coherent collaboration between development and purchasing. This is the main focus of this work. In this paper, we first describe how the product development process has to be restructured for the concerted development of modules and overall products within the scope of a modular product system. Secondly, we propose a new collaboration model between the OEM and its suppliers, since OEMs need to collaborate directly with suppliers of lower levels of the value chain in order to facilitate the standardisation of components and modules across different products. Finally, we delineate an awarding process for both development services and production volumes for series supply that resolves the conflicting priorities of economies of scale and avoiding over-dependence on single suppliers. The process models described in this paper have been conceived based on systems engineering principles and have been successfully tested and further refined throughout several industrial projects carried out with two automotive manufacturers. The resulting approach will be demonstrated using a generic example taken from the automotive industry.

Supply chain design considering economies of scale and transport frequencies

2012 ◽  
Vol 218 (3) ◽  
pp. 789-800 ◽  
Author(s):  
Kerstin Baumgartner ◽  
André Fuetterer ◽  
Ulrich W. Thonemann
Keyword(s):  
Supply Chain ◽  
Economies Of Scale ◽  
Supply Chain Design
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