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Supply-Chain Synchronization: Lessons from Hyundai Motor Company

Author

Listed:
  • Chan K. Hahn

    (Department of Management, College of Business Administration, Bowling Green State University, Bowling Green, Ohio 43403)

  • Edward A. Duplaga

    (Department of Management, Bowling Green State University)

  • Janet L. Hartley

    (Department of Management, Bowling Green State University)

Abstract

One of the challenges of supply-chain management is developing ways to effectively integrate activities across organizations on the supply chain. Hyundai Motor Company developed mechanisms to coordinate production planning and scheduling activities among supply-chain members. Hyundai Motor's production-and-sales-control (P/SC) department uses regularly scheduled cross-functional meetings and scheduling policies to coordinate supply-chain activities. When implementing this process, the P/SC department overcame structural, environmental, and behavioral problems. Although Hyundai management concedes that the process is not perfect, communication among supply-chain members has improved, and the P/SC group has successfully promoted mutual understanding and respect among functional areas. The primary benefit, ultimately, is improved customer satisfaction through better integration of functional activities.

Suggested Citation

  • Chan K. Hahn & Edward A. Duplaga & Janet L. Hartley, 2000. "Supply-Chain Synchronization: Lessons from Hyundai Motor Company," Interfaces, INFORMS, vol. 30(4), pages 32-45, August.
    • Handle: RePEc:inm:orinte:v:30:y:2000:i:4:p:32-45
    DOI: 10.1287/inte.30.4.32.11642
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    References listed on IDEAS

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    1. Rho, Boo-Ho & Hahm, Yong-Seok & Yu, Yung-Mok, 1994. "Improving interface congruence between manufacturing and marketing in industrial-product manufacturers," International Journal of Production Economics, Elsevier, vol. 37(1), pages 27-40, November.
    2. Hau L. Lee & Corey Billington, 1993. "Material Management in Decentralized Supply Chains," Operations Research, INFORMS, vol. 41(5), pages 835-847, October.
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    Cited by:

    1. Sima M. Fortsch & Jeong Hoon Choi & Elena A. Khapalova, 2022. "Competition can help predict sales," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 41(2), pages 331-344, March.
    2. Saswati Tripathi & Bijoy Talukder, 2023. "Supply Chain Performance and Profitability in Indian Automobile Industry: Evidence of Segmental Difference," Global Business Review, International Management Institute, vol. 24(2), pages 371-392, April.
    3. Laurent Lim, Lâm & Alpan, Gülgün & Penz, Bernard, 2014. "Reconciling sales and operations management with distant suppliers in the automotive industry: A simulation approach," International Journal of Production Economics, Elsevier, vol. 151(C), pages 20-36.
    4. Ciancimino, Elena & Cannella, Salvatore & Bruccoleri, Manfredi & Framinan, Jose M., 2012. "On the Bullwhip Avoidance Phase: The Synchronised Supply Chain," European Journal of Operational Research, Elsevier, vol. 221(1), pages 49-63.
    5. Jung, Jung Woo & Lee, Young Hae, 2010. "Heuristic algorithms for production and transportation planning through synchronization of a serial supply chain," International Journal of Production Economics, Elsevier, vol. 124(2), pages 433-447, April.
    6. Mondal, Sayantani, 2019. "A new supply chain model and its synchronization behaviour," Chaos, Solitons & Fractals, Elsevier, vol. 123(C), pages 140-148.
    7. George Dikos & Stavroula Spyropoulou, 2013. "Supply Chain Optimization and Planning in Heracles General Cement Company," Interfaces, INFORMS, vol. 43(4), pages 297-312, August.
    8. Benoit Aubert & Betty Vandenbosch & Muriel Mignerat, 2003. "Towards the Measurement of Process Integration," CIRANO Working Papers 2003s-04, CIRANO.

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