Auto industry Essay Example | Topics and Well Written Essays - 500 words

Auto industry - Essay Example This is meant to ensure that there are no delays that can witnessed in the manufacture of the automobiles. Careful management of the supply chain entails that the automobile manufacturer will be in a better position to meet its target. Essentially, the aim of business is to make profits and this can be possible if an organization is capable of meeting its demand at a particular time. There should be no loopholes in the supply chain in order for the organization to operate effectively and efficiently. The other reason for managing the supply chain is related to the aspect of maintaining quality. Different companies can supply the same component required in making automobiles. However, the likely challenge to be encountered is that the quality of the components supplied by different suppliers may differ. Some parts supplied may be substandard and this can compromise the quality of the final product manufactured. It is the duty of the automobile manufacturer to outline the standard expectations with regards to the quality of the components supplied by different suppliers. Ensuring high quality components supplied can be achieved through establishing a quality assurance department within the manufacturing plant that would be responsible for ensuring that the parts supplied meet the standards. Defective components can be rejected and if needs be, these can be replaced with quality products. The other reason why managing the supply chain is important is about creating a good relationship with the suppliers. This is very important since this means that aspects such as pricing can be negotiated. A reputable car manufacturer can negotiate the prices of different components that are used in manufacturing automobiles. This is very important since the best deals can be achieved. Favorable prices of the components required for making cars mean that the final prices of the ultimate