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Building Cars to Customer Order - What does it mean for Inbound Logistics Operations?

Author

Listed:
  • Joe Miemczyk

    (University of Bath [Bath])

  • Matthias Holweg

Abstract

The automotive industry is undergoing a strategic transition. Cost pressure from rising stock levels in the market and increasing incentives needed to sell these vehicles are forcing vehicle manufacturers to rethink their prevalent "stock-push" approach, building vehicles against a forecast and selling from stock, in favor of a stock-less "build-to-order" order fulfillment strategy. More responsive order fulfillment at the vehicle manufacturer level however will not only require flexible and responsive component supply, but will also have wide ramifications for the logistics operations. Based on three case studies of major inbound logistics operations, this exploratory study assesses their ability to support such a build-to-order approach, as well as the potential implications of such transition. The paper concludes with a set of general strategies for how these implications could be mitigated.

Suggested Citation

  • Joe Miemczyk & Matthias Holweg, 2004. "Building Cars to Customer Order - What does it mean for Inbound Logistics Operations?," Post-Print hal-01118752, HAL.
  • Handle: RePEc:hal:journl:hal-01118752
    DOI: 10.1002/j.2158-1592.2004.tb00186.x
    as

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    Citations

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    Cited by:

    1. Lampón, Jesús F. & Cabanelas, Pablo & Carballo-Cruz, Francisco, 2017. "A model for international production relocation: Multinationals' operational flexibility and requirements at production plant level," Journal of Business Research, Elsevier, vol. 77(C), pages 95-101.
    2. Meyer, Anne & Amberg, Boris, 2018. "Transport concept selection considering supplier milk runs – An integrated model and a case study from the automotive industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 113(C), pages 147-169.
    3. Jesús F. Lampón & Pablo Cabanelas-Lorenzo & Santiago Lago-Peñas, 2013. "Why firms relocate their production overseas? The answer lies inside: corporate, logistic and technological determinants," Working Papers 2013/3, Institut d'Economia de Barcelona (IEB).
    4. 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.
    5. Jesús F. Lampón & Pablo Cabanelas-Lorenzo & Santiago Lago-Peñas, 2013. "Why firms relocate their production overseas? The answer lies inside: corporate, logistic and technological determinants," Working Papers 2013/3, Institut d'Economia de Barcelona (IEB).
    6. Lampón, Jesús F., 2019. "Relocation in conditions of uncertainty: the Spanish automobile components industry during the economic crisis (2008-2012)," MPRA Paper 92738, University Library of Munich, Germany.
    7. Robert Basic & Helga Pavlic Skender, 2017. "Delivery Reliability In Outbound Vehicle Distribution – A Factor Of Successfull Automotive Supply Chain," Business Logistics in Modern Management, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 17, pages 265-280.
    8. Lampón, Jesús F. & Lago-Peñas, Santiago, 2013. "Factors behind international relocation and changes in production geography in the European automobile components industry," MPRA Paper 45659, University Library of Munich, Germany.
    9. Lampón, Jesús F. & Lago-Peñas, Santiago, 2013. "Factors behind international relocation and changes in production geography in the European automobile components industry," MPRA Paper 45659, University Library of Munich, Germany.
    10. Saurabh Chandra & Debabrata Ghosh & Samir K. Srivastava, 2016. "Outbound logistics management practices in the automotive industry: an emerging economy perspective," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 43(2), pages 145-165, June.

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