Nissan Supply Chain Management

Topics: Logistics, Supply chain management, Inventory Pages: 3 (829 words) Published: September 21, 2014

Nissan Motor Company Ltd is one of the biggest automobile manufacturing companies in the world. It ranked 5th number overall in automobile industry. It was founded by Mr Yoshike Aikawa in 1933 with the name Tobata Casting Ltd but in 1933 the name was changed to Nissan. It’s headquarter is in Japan. In 1962 it entered into European market. Currently, the company has net income more than $300 billion. Since Nissan adopted Just In Time (JIT) based supply system, the inventory levels being reduced from 12 to 2.5 days’ supply. The reduction on the number of days is significantly at 80%.. SUMMARY

Nissan introduced a sustained and efficient Just In Time supply chain. JIT system often being associated with unfriendly impacts towards road traffic but Nissan achieves it without the negative impacts which make the system not just efficient but also environmental friendly. Furthermore, JIT system operates in 3 main stages which are the supplier collection, the ‘cross-dock’ load consolidation and the ‘line-haul’ delivery to Nissan. This is the main different between the original system and JIT system.

Supply chain management is a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouse and stores so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time in order to minimize system-wide costs while satisfying service level requirements (Simche-Levi et al, 2003). JIT is an important concept according to supply chain management as the main purposes of it is to introduce the product at the right time and in the right amount. It helps the supplier not to make more supply and maintain inventory. Before Nissan implemented JIT, the original system takes 12 days for supplier to arrive at Nissan Motor Manufacturing UK Factory. Each supplier will transport their supplies and the components were unloaded and...
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