ABSTRACT
To be successful, automotive companies must develop an approach to design, organize, and execute supply chain activities from its roots in basic materials extracting to the dealer network. A typical supply chain involves the following stages: raw material/component suppliers, original equipment manufacturers, wholesalers/distributors, retailers, and customers. The difference between the revenue generated and the overall costs across the supply chain is the supply chain profitability. Supply chain management is inherently multidisciplinary and requires the efforts of both engineers and business managers. The goal of a supply chain is to meet specific customer expectations and in the mean time generate profit for the entire chain. The supply chain operations reference model is a model that can be used to configure the supply chain based on business strategy. The supply chain can be viewed as an externalization of business processes toward greater profitability. The chapter also presents an overview of the key concepts discussed in this book.
