ose from. ALTERNATIVE 1: To Virtually integrate the supply chainThis means that the 30,000 suppliers will be able to access information and data with restricted security codes for different levels of access. (http://global.umi. com/pqdweb?ReqType=301&UserId=IPAuto&Passwd=IPAuto&JSEnabled=1&TS=953864545)The goal is to switch to a ‘pull mode’ where cars and parts are produced according to consumer demand leading to overall savings (explained in advantages and recommendation). At the moment we crank at full capacity, building a predetermined mix of cars and ship them to dealers who then rely on strong-arm tactics or large rebates to move the ones customers don't want. Streamlining purchasing and reduction in inventory throughout the supply chain will save several billion dollars in purchasing costs and lessen the time it takes to build cars for custom orders.Advantages: 1.Communication The supplier can communicate (changes in product or design, orders etc.) to the required party in quickly and in real time ( online vs. paper )Suppliers will be able to use the web site to quickly communicate needed changes in parts design and make for easy changes in product specifications.Smoothen communication between tier-one, and sub-tier suppliers. This will allow the supplier to reduce costs, supply better quality parts, and there is quicker access to engineering design to change orders, leading to saving of overall purchase and production cost.Giving the supplier online access to the required data will also give them responsibility towards the product, motivating them to design quality processed materials with low costs. Dealing via the net will, make ordering and billing almost immediate, The site can provide sales forecasting and similar services, so suppliers can better predict and manage their operations.Dash for quicker service: electronic dealing with suppliers could cut costs and speed deliveries. 2.New Cross Functional TeamsNew t...
