Nissan U.A.E supply chain managment Essay
e supply chain managment INTRODUCTIONIn every today daily activity, many institutions carry their business through management. Management is carried out at different levels in various ways by people employed by the organization or institution. This kind of management differs from one another depending on the kind of work the manager are assigned to undertake. Thus, in a single organization there may be one or more managers according to their scale of the organization and its diversity. Some may have the general manager serving the whole organization branches and departments. While this happen in such small companies, larger organizations would employ several individuals in the management team.
However, it is prudent to note that generally there is the usual hierarchal ranking of authority in such organization. So, there are such officers who are assigned the role to oversee in entire company activities while at the same time there are the junior officers who are to report to him in the different departmental duties. Hence, management in any business work is very crucial and determines either the success or failure of the business.As company endeavors to executive its activities therefore there is the general management work of its major activities.
This general management of a company’s major operational activities is referred to as the operations management. In the brief review of this, it deals with manufacturing and implementations of services or goods. But this is very flexible as it is determined by the nature of organization and its authority of distribution. While there exist the variability of organization operation systems, the main objective of operation management are to mitigate operation efficiency as they try to minimize the operational costs.In the activities and duty execution in a business field, supply Chain management form one of the core areas of the management work. Most people are puzzled to differentiate about supply chain management and supply management. However, it is notable to realize the major differences in supply management and supply chain management. The supply chain management is said to be an inventory process, which involves planning and processing of orders.
Furthermore, it also entails the handling, transportation and storage of all materials purchase, distributed and processed. It is an activity which links the business owner with the supplier’s suppliers; and it also makes coordinate him to the customers’ customer. Definitely, the supply chain management will thus be a management of product’s supply chain for the purpose of increasing efficiency as well as profitability. (Choi, 1996)http://www.mindrelief.net/operations_management.htmlHistoryThe Nissan Company is one of the oldest companies established in the state of Dubai.
The product of Nissan vehicles are used widely used allover the world. In the states of Dubai, the products are being distributed by Arabians Automobiles Company. The Arabian automobile company embarked on its activities in the year 1968. It formed crucial niche of the al Rostamani business conglomerates.
The key role leading to its establishment was for the purposes of distributing Nissan cars and their genuine parts.Company’s mission and visionThe company is well focuses to face the big challenges which are posed in the business world competition. As it focuses to attaining a world class leadership positions thus the enjoyment of scale of production, they have devoted their efforts on the business with a vision of capturing 25% of the market shares by 2010. The attainment of this dream is basically founded in the core valued mission as they state it as “ensuring of total and recurring enjoyable ownership experience to each of their customer by following the best practices in every thing that they undertake.
Such a wonderful vision and mission has always been their forefront to the success and growth from one point to another. As the company has progressed, their founding core values have always attracted customers to their products. Primarily, integrity and commitment to workable strategies are key areas that have let the company to grow to greater heights.
The other major core values include the win-win relationships and valuate addition to their customers. It is not only to the customers who have received such a win- win relationship from the company but also such a cooperation has been extended to the business partners, stakeholders, employees and the whole community. The current business environment has been so dynamic and therefore, the success and the continued expansion of the business is widely attributed to the flexible changes leading to improvement in many aspects that they do in order to satisfy the customers needs. (Cohen, 1988) http://www.nissan.
arabianautomobiles.com/corporate/vision.htmlThe company having established is head quarters in the strategy place of Dubai, it has continued to expand its territories in this region. Its diversity entails both location and also in the product brands. As long as the company has perpetually gone on trading in the area, the company has diligently and relentlessly found the needs to do market search for its old and new products and brands. Among the products categories, the company of Nissans has been supplying their clients with various categories such as passenger cars, four wheel drive cars and commercial vehicles. (Gavireni, 1998) While the market competition remains stiff from other companies such Toyota, Isuzu and Tata, the Nissan Company has competed well in the region. Nissan cars are some of the major products which are in high demand within the market boundaries.
The demand of these products varies from one part to another. However, the whole region is well covered just from the large water bodies to those parts in the inland of the airport around Al Garhuod. The company’s ability to attract more and more clients for their product s can evidently be seen at the rate at which the company is developing its product brands. Nissan company organization has produced a wide variety of its models which are all useful for customers’ choice. The company’s twenty plus models which are currently in the market place includes such models like the Tiida Hatchback, Altima 2.
5, Altima 3.5 , Altima coupe, maxima, X-trail, Pathfinder, Patrol pick up, Navara pick up and other. These are all put in place to satisfy customers’ need right from their economic base to the prestigious purposes.
(Choi, 1996)One of the most observable features in the Nissan product is the quality which is offered. The management has always committed its efforts to avail undisputed quality product to its clients and clienteles. From the company’s research in the marketing department, it has been evident that score of customers have commended Nissan as vehicles of durability lasting for more than ten year on sound maintenance of the vehicle. As we all very well knowing that man is to err, and once vivid to every one is that accidents always occurs, the company has strategically created an amicable shopping center for services to their customers. Throughout its operation of its transactions, this organization has offered after sale services to its customers. This is done using modern technologies and still with a state of art facilities at the various locations.
Such services are not limited to mechanical services, body repairs; rust proofing, car wash services as well as quick- lube Nissan express services. So much enormous work on maintenance is thus offered to continually keep quality products. Much encouragement to the clients is retrieved from the quick access to their genuine spares parts. (Gavireni, 1998)Supply chain of Nissan in U.A.EThe supply chain of the united Arabian emirates is recognized as core function as this predominantly plays a major role in the profitability of the Nissan traders in the states. As well known, the disruption of the any services in supply chain of the vehicles sector would lead to eminent problems. This because the process of the supply chain in the Middle East where the then united Arabian emirates is located may actually seem to be long.
The length supply chain processes of the Nissan vehicles a sector in the region emerges from several reasons. In this region of Nissan trading transactions, the operations are done internationally and therefore this involves international trade. It is vivid that the Nissan vehicle together with every other vehicle spare parts that are traded or used within this region has to be imported from other part of the world.The united Arabian emirates imports thousands of Nissan vehicles from their suppliers. The major suppliers of these Nissan vehicles in the region are mostly commercial traders of the middlemen hauling from countries/ states of Taiwan, Japan, Malaysia, Korea and India. This indicates that therefore actually cost cut down on the transportation of their import as the creditors’ suppliers are just bordering countries.
This implies that the cost of such product in the Middle East are bit easily Available as compared to other states which are far situated from their suppliers. (Cohen, 1988):Nissans and there spare parts are in wide use not only in the united Arabian emirates regions, but it is also in great demands in other parts in the continent and other continents. The traders in there united Arabian emirates are thus able to link with client in the international trades in process of marketing of these Nissan products. After the importation of such goods by the tycoon in the region, this region does not act as major destination part of the goods. Although the Nissan makes the largest common vehicle types in the region, it is discovered that much larger sales transactions are done to countries outside the region.
Major exports are transacted between the united Arabian emirates and African countries like Libya, Kenya, Nigeria and Ethiopia. Other countries which are included as consumers of the Nissan products from the region part are Bahrain, Seychelles, Qatar, Iran, Saudi Arabia and Kuwait among others. When some one is within the Dubai region, he can access these Nissan products easily. For instance the Arabian automobiles company which is the sole company highly granted with the distribution of Nissan car in the region, it quite possible to view such products from nine showrooms set aside for new cars. In addition to these nine showrooms for the new cars, there are also other premises for the company which houses used cars.
While tear and wear are common activities of the vehicle body and are often realized in the most cases of machine and moving parts, the company has established even more outlets for the spares parts. Besides the selling of the spare parts, eight well equipped workshops are strategically set up to offer services to the clients throughout Dubai and northern emirates. (Gavireni, 1998)http://www.ultimateautospares.
com/Relations of Nissan companies in U.A.E and their suppliersThe united Arabian emirates receive much of its trading goods from Japan. The two states have shown good relationship in the previous past periods. However, on the commercial terms of trade, the two states have not shown any much improvement as far as specials treatments are concerned. This creates an amazing surprise to the countries of the globe.
Perhaps, mostly world leaders are amazed as why this would be the case while the two states have great potentials on trade issue. It is until recent that the U.A.E and the Japanese citizens are embarked on such issues anticipated to yields momentous trade induction between the regions. While efforts are now put forward towards bringing the gap in trade between the two states, united Arabian emirates are still adamant in giving a concession to their major supplier Japan.
(Beamon, 1996):Although Japan form the largest market for the U.A.E products such as crude oil and liquefied natural gas, Japanese feel much impinged for lack of special treatment of their product such Nissan vehicles and their accessories in U.A.E region. This has formed one of the much stumbling block in the commercial trading and investment in the Nissan Company. The fact that these goods are just imported; they are always being doubly taxed in the UAE region.
This leads to deteriorating trading between the Nissan suppliers in the side of Japan and the united Arabian emirates. Furthermore, this non-conducive trading relationship of the united Arabian emirates is clearly depicted by the figure of foreign direct investments in UAE. These figures have shown to remain in low percentages in this region as compared to the Japan’s foreign direct investments in other regions. (Bowersox, 1997)On the lower levels of UAE community, interaction with the supplier community in the Japan’s country shows a very strong bond and cohesion.
Such cohesiveness is evidenced when it is considered that there are often visits on either group at their various states. Nissan manufacturer would often invite men from Dubai to their manufacturing sites for both learning and pleasure purposes. Japan would also arrange trips for student in colleges at Dubai region to visit and learn from their technical application in their manufacturing process. Similarly, the Nissan producers are much focus on their marketing which comes from friendly relation between the two regions. They thus make trips to the region to attract more customers in the region .this has been done through strategically laid done operation such as Japanese men traveling on a Nissan mobile showrooms in the UAE region.
(Gopal, 1992)Logistics and inventory managementThe dynamic changes which are globally occurring in the world today are directly affecting the manner of handling logistics and inventories. In the first and foremost consideration on the effect is being caused by the increased production and manufacturing rates of the products. The emerged new and faster technology which are much more reliable in the processing of the various goods has change both the production rates of Nissan suppliers while at the same time there is increased demand on the side of other types of goods being produced. The integration of such technical services has led to a revolution in the Nissan industry. Hence, the globalization process has not brought the change of market growth but it has also necessitated speedy supply of the goods produced. (Beamon, 1996):The Nissan Company has always endeavored to achieve the best in term of goods delivery to their clients within they shortest time.
On its operation to attain the great possible means, it has implemented the use newly upcoming methods of services in the transportation of some of its light material and documents. Besides these speedy physical delivery methodologies, the organization has keenly embarked on installing and implementing data and information transfers by the use of electronic means. This has saved the costs both in terms of processing cost as well as time.
(Cohen, 1988):http://www.bilaterals.org/article.php3?id_article=12495Abu Dhabi-based think-tank highlighted the efforts by the UAEThe Nissan business is currently booming in the UAE region. The vehicles categorized as light commercial are showing an unbelievable sales mark in the Nissan business.
Since 2004, the business has reflected a forty percent increase in sales. The plan on sales of the previous fiscal year ending 2008, their target on sale of 434000 units was extremely exceeded rising to 470000. Even though the company seems to make unusual improvement in the region, there are certain clear factors which may derail the business. First and foremost, the business is likely to be affected by the environment of international market and trade operations.
There may be business slowdown in the light commercial vehicle due to various factors which are tugged to its growth. This is be because the gross domestic product of the region is duly expected to decrease in this current year to less 6.5 percent. It is further viewed that the decrease would go down to almost 6.1 percent by next year. This is likely to happen as results of inflation factors, stricter licensing norms and horizon improvement in the public transport system. In addition, there are stiff challenges from other manufacturing companies such as Daimlers, Toyota and Mitsubishi among others. (Bowersox, 1969)While the harmonization of the supply chain as part of the supply chain management, properly laid down infrastructures in the distribution of the logistics and inventories plays a key role of the successful operation management.
In this UAE region, the major infrastructures of transportation are road. Some of the greatest challenge lies with the deliveries of heavy and bulk goods. This means most of the vehicles which are required in the region are transport in parts for them to be assembled within the states. Being aware of the UAE lagging behind in terms of technological issues, this calls for experts to be imported to the country. This may cause delay in some cases where the human labor in not available within the appropriate time. (Gopal, 1992)In order to curb the above major problems, much more has to be done in infrastructure.
As road and rail way construction are much expensive, the Nissan management is not compelled to invest in this, but through mutual cooperation with the UAE government some investment can be done to improve the infrastructure. Still chances of expansion are there which entails marketing of their products in newly established parts with high demand potentials. While management remains a key to the success of any business, it is advisable for it to endeavor in entering into merger and acquisition processes with those companies which less performing. (Baganha, 1998)Reference: Baganha, M. (1998): The Stabilizing Effect of Inventory in Supply Chains Beamon, B. (1996): Performance Measures in Supply Chain Management: Rensellaer Polytechnic University Bowersox, J. (1969): The Logistics of Marketing: McMillan Bowersox, J.
(1997): The Integrated Supply Chain Management Choi, Y. (1996): An exploration of supplier selection practices across the supply chain: vol.14, pg329-342 Cohen, A (1988): Strategic Analysis of Integrated Production-Distribution Systems Models and Methods: vol.36, pg 201-215 Cohen, A. (1997): Global Supply Chains: vol. 6:93-105Gavireni, S. (1998): Value of Information in Capacitated Supply Chains.
CambridgeGentry, J. (1996): The role of carriers in buyer-supplier strategic partnerships: vol.17, pp 27-5539Gopal, C. (1992): Manufacturing Logistics Systems for a Competitive Global Strategy