Thursday, June 26, 2014

Hyundai Special logistic management


Hyundai Special logistic management

 Huafeng Zhou
Zhenming Gu
       Hyundai Logistics were established in 1988 where the headquarter located in Seoul, South Korea. It is known for its white trucks. As a group of Hyundai Group, Hyundai Logistics is also operating the logistics for Hyundai motor. They provide inland trucking service, domestic rail service, warehousing management service and costing feeder services.
       Hyundai motor company is not just using one logistic company; they are other logistic company to succeed their goal. Hyundai Glovis logistic company some time plays the first tier supply role. They are assembling auto parts into a whole car. Hyundai GLOVIS is doing all the steps of logistical process related to the car production and sales. The deliver the auto parts to assemble finished vehicles. They are also deliver the finished vehicles from Hyundai auto plants to regional warehouses and ports using transporters, and provide whole service of transporting vehicles to other places. They provide the on time service, tracking information allowing Hyundai Company to have their product send to their customer right on time to make their customer satisfaction.
       Hyundai Company is also using product management life for to make their vehicle to customers. It is easy to find that Hyundai are doing special cars for every customer if one views their website. Customers are allowed to select every detail on the car based on the car model that is provided. From the exterior looking, the color, customer has more than 8 choices to select. Another part that they can make difference with others with the looking is changing the wheels. Different sizes of wheels and materials of wheels were providing with different price. Hyundai motor company is also make available for providing different interiors for customers to choose. Leather inferior or liner inferior, sport interior or normal provide customer with different needs and feelings. Customers can also change the audio player. All of the service that Hyundai provide with their customers requiring Hyundai has a strong ability in managing its supply chain to meet its customers' needs. After customers choose the car, the independent products, they can also choose dependent products like different packages and accessories. This part of products also requires Hyundai motor company have a good control for their inventory level and control the extra cost.  
       Hyundai motor company have a special network design, they are working with different suppliers and distributors. In North America, Hyundai motor now is cooperating with Hankook Logitech Company. This company locates in Costa Mesa; Ca is now responsible for the all total logistic managing for Hyundai and Kia vehicle transportation in North America. In 2003, HKA helped Kia and Hyundai imported more than 700,000 vehicles and provide service to more than 1,200 dealerships nationwide. Within the operation of HKA, Hyundai motor increases its efficiency of providing products to its customers to increase customer's satisfaction and its competency.
       Overall, it is easy to find that Hyundai motor company are outsourcing its supply chain business to some company which is more efficient in operating this system to met the company's goal and customer's value. Within this system, they can more easily to use pull and push strategies to increase its sales. They win its supply with more distribution channels. In this case, they can get more stable and low risk business operation level. As they have such complicated system, they are using a unique software system to polish their performances. They are using experiential and professional logistic company work for them.
       Hyundai motor company are now doing good job in the area they are doing. Now the biggest threat to Hyundai motor company would be the ability to managing the supply chain for the expending sales performance. It is not easy to keep and improve to its efficient supply performance while sales more. They also need to make sure to improve the satisfaction for their customers.



Tuesday, June 24, 2014

British American Tobacco

“Adding value to our supply chain and the environment”

Ian Mercer and Adam Ritchie

            Despite its controversial market British American Tobacco has profited for over a century dating back to 1902, when the UK’s Imperial Tobacco Company formed a joint venture with the American Tobacco Company.  Due to rapid expansion into the markets of India, Europe and East Africa, cigarette sales exceeded $10 Billion per year in 1920 (BAT - Who We Are).  British American Tobacco has continued this trend of exponential growth, producing in 46 factories located in 41 countries and available in 200 markets worldwide.  In the year 2013 BAT employed over 57,000 people, and sold 676 billion cigarettes (BAT – Global to Local).

            Nothing is more critical to the success of British American Tobacco than its sustainability.  With ever increasing demand for agricultural products, it is vital that the company’s footprint on the land and environment it utilizes is minimal. To support this initiative, the company owns no farms of their own, as their suppliers consist of over 100,000 smallholder farms worldwide that produce leaves for manufacturing (BAT – Supply Chain).  Suppliers are required to improve their environmental responsibility through British American Tobacco’s Social Responsibility in Tobacco Production program. This program sets a minimum environmental performance level, promoting resource conservation and sustainability. The responsibility program also sets standards on child labor regulations and working conditions for farmers and hired employees.

A major focus of British American Tobacco (BAT) is business to business relationships with not only suppliers but also retailers who sell their products.  This emphasis on being a high quality supplier allows customers to receive products where they want them, when they want them, and at the right price and quality. Selling to a wide variety of customers ranging from large retail to independent shop owners, British American Tobacco must be able to meet the needs of every retailer with the highest efficiency. Among its customers, 9 key retailers are managed at a global level, these include, 7-Eleven, BP, Carrefour, Chevron Texaco, Couchetard, Exxon Mobil, Shell, Tesco and Wal-Mart (BAT – Working with Retailers). Cross integration of companies’ goals is a major focus, as BAT engages with upper level management to understand global strategies and identify potential areas of cooperation between firms. This not only cuts cost but increases efficiency at every level of supply chain, benefiting customers, consumers and the company.

British American Tobacco has a large focus on corporate responsibility and sustainability in its supply chain strategy.  “Minimizing our Impact” is one of British American Tobacco’s core supply chain goals. (BAT Supply Chain)  The corporation attempts to achieve this goal by strongly pushing every division within its supply chain to operate under this same mindset of minimizing their impact on the environment.  In essence, British American Tobacco has created a culture of devoted suppliers and employees who all share this same goal of sustainability.  The three underlying aims of this supply chain strategy as laid out by the corporations website consist of; “taking a more long-term approach to managing the sustainability impacts of their supply chain on the environment and the impact the environment may have on their supply chain, further developing tools to enable informed decision making, and addressing the impacts of their supply chain through collaboration with suppliers and stakeholders.” (BAT Supply Chain)  Brisith American Tobacco also strives for continuous improvement within its supply chain through both the Environmental Sustainability Assessment (ESA) as well as the Business Enabler Survey Tool (BEST).  The ESA tool is used “to compare environmental impacts associated with the development of new products, components, and packaging.” The BEST tool “assesses suppliers’ sustainability performance and provides a framework for continual improvement.” (BAT Supply Chain)  Overall, British American Tobacco clearly wants to ensure the end consumer is aware that the company has a vested interest in sustainability, ultimately strengthening their corporate image. 

The largest threat to the industry is tobacco trafficking and counterfeit products. Data suggests that up to 660 billion cigarettes are smuggled every year, which equates to 30 billion Euros of tax evasion worldwide (BAT – Tobacco Trafficking). Along with financial deterrents, smuggling also puts the consumers of these products at risk. Most trafficking involves near replica products created by criminal gangs with the potential to be sold to underage consumers. Counterfeits can put you at a greater risk for health complications, containing higher levels of carbon monoxide and tar, along with other contaminants. This not only puts consumers of the products at risk but also the integrity and reputation of the company. To combat this potential risk, BAT works with suppliers to develop an industry wide security system to secure the supply chain. This is done by tracking products throughout the supply chain using a digital tax verification produced by the Digital Coding and Tracking Association. By working with law enforcement and partnering with the World Health Organization, BAT hopes to minimize the amount of counterfeit products and eliminate potential risks associated with the black market (BAT – WHO Protocol).

Illegal Cigarettes: Who Pays the Price:

Sustainable Agriculture at BAT: A Day in the Life:






            Lilly is a company that was founded in 1876, and they are devoted to discovering solutions to the most pressing health issues around the world. With the main headquarters in Indianapolis, Indiana Lilly has around 38,000 employees in over 55 countries for their clinical research. Lilly has 7,900 employees devoted to research and development. This does not include their product markets that reach out to more than 125 countries. They have manufacturing plants located in 13 countries, and research facilities in 8 different countries. The net sales for Lilly are $23,113,100,000. Lilly strives to be able to reach out to every country they can to give the people the desperate medical needs, that are essential for survival.

            The supply chain that Lilly has is very unique, because they are trying to eliminate the counterfeit drugs that people come into contact with. Their supply chain is very secure to make sure that the integrity of their products are maintained at the highest quality. Also, in their supply chain they use very sophisticated technology to help detect and deter counterfeit products that come into the market. They work tirelessly through investigations in all sectors to seek and find all products that are counterfeit, and remove them from the chain. Lilly works with government and non-government agencies to strengthen the awareness of counterfeits, and to enforce counterfeiting laws. Lilly wins with their supply chain through all of these various techniques that have been stated. This supply chain requires long time commitments within the partners, and they sustain themselves through this relationship. In doing this they combat the problem of counterfeit medicines.

            The biggest threat to Lilly’s supply chain would be the counterfeit drugs that come into the market. These drugs look the same as what Lilly produces, but they are not the same drug. This is a problem for them because, their chain is being diluted with fake drugs that are not their own. Lilly works to stop this problem on a daily basis, so that they are giving the people the drugs they need and want. Counterfeit drugs are a big problem for this company, but it is not going to ruin them. There will always be counterfeit drugs in the market, but Lilly works to reduce them to a point that they don’t even exist.

Video 1: Lilly - Non-Communicable Disease Partnership

Video 2: Lilly - Diversity