BMW is an automobile company that deals in manufacturing of luxury cars with a high trade caption of Sheer Driving Pleasure. BMW was founded in 1916 in Munich, Germany after a move to stop manufacturing aircraft engines in 1923 used during the world war before switching to motorcycles in 1930. The move to start producing automobiles mas made in 1959 after being faced with a financial crisis. Hans Glas was made its auto manufacturing unit after an acquisition in 1966. In the year 1992 BMW opened its first overseas plant in California, USA. BMW gave parenting the world class Roll-Royce cars.
Today, the company has sold over 1,800,000 motor cars across the globe to be ranked among the most successful royal class cars manufacturers. Motorcycles form a large part of BMW products. Sales of our company’s products are spread to a greater part of the globe through sales representatives (www.bmw-asia.com). Motor cars and motorcycles assembly plants have been set in several countries including USA, Germany, Italy, India, and Great Britain. Besides the creation of cars the BMW- Singapore offers a broad range of products and services. Products include BMW used cars, original BMW cars accessories, and mobile devices and applications (Christopher, 2016). Our services range from personalized maintenance and repair services to clients, and financial services in insurance and the BMW straight line financing where customers make a fixed monthly installment payment on a selected loan tenure and take ownership of the car at the end of the tenure. Car models sold by BMW in Singapore are the BMW 1 Series, The BMW 2 Series, The BMW 3 Series, The BMW 4 Series,
The BMW 5 Series, The BMW 6 Series, The BMW 7 Series, The BMW X Series, The BMW M Series and The BMW I Series. For the BMW Group, sustainability is all about products, services and value to the society which is formed by investors, employees, general public and governments (Christopher, 2016, pp. 46, 48).
Logistics for BMW Singapore relates to the general management of acquisition storing and management of input supplies. It comprises the selection of appropriate, cost-effective and accessible distributors and stores (Blanchard, 2010). Supply of motor car parts avails the productions department with the resources required to keep the operations in the office flow. Most types of inputs in the productions department are manufactured by BMW plants that are set up in separate countries hence the need for local logistics department. Prices cease to be a point of consideration because we own our suppliers.
BMW Singapore applies several theories it logistics management functions. The systems theory is the theory that BMW employs in supply chain management. On time receipt of placed orders is ensured the assembly process remains continuous. Transportation duration is of much importance and matches the time that will be taken to completely consume the remaining stock at the time an order is placed. I apply tradeoffs to keep storage costs at a minimum. The theory in tradeoffs is derived from economics. The point of trying to minimize costs at one area may end up in higher total costs as expenses in another area is reduced. Transporting BMW automobiles to Singapore is traded with storage costs to get an optimal solution. Pre-contact requires demand management. The year has varying periods of weak demand, average demand and peak demand of BMW automobile products. Pre-ordered and auto cars that need personalization are always prioritized because they owe a greater income to the company and hence have to be produced first (Hugos, 2010, p. 172). Inputs to such products have to be ordered before those for regular auto cars and motorcycles
BMW Singapore buying behavior is influenced by environmental factors of, regulation, culture, politics, suppliers and technology available. Organizational factors will include structures, technology, orientation, size and the objectives. Our goal remains in value, and as the logistics manager, I firmly insist on avoidance of buy-classes. The buying behavior draws strength from the levels of associated risk.
Production levels have a right level of the logistics. BMW uses the complete information to eliminate situations of environmental uncertainties that may cause interruption to the logistics process. Pre-order information and the general in sore sale trend sets the level of orders to be placed to the production plants. Periods of high automobile pre-orders will necessitate higher productions levels, and this must be facilitated with more inputs to be brought and pulls basis from the company’s dynamic capabilities (Christopher, 2016, p. 46). Logistics has a direct control on productions. Productions are directly related to the inputs available. The logistics department creates an optimal outputs level that has to be in the balance so that no agency stands to lose. There is a proper organization of all the global production plants with the central management in Germany that is concerned with coordination of output levels. Orders by individual branch logistics managers are reported and coordinated by the head office who manages the levels of productions units which are the supplied to the assembly stations (Blanchard, 2010, p. 96). As the logistics and supply manager of BMW Singapore, I am in charge of receiving the arriving goods after approving the values and that they have been received as were ordered. Storage of the received inputs is facilitated as they are prepared to join the production line. Some areas have involved, and regular operations in the field of administration and are not core for which I employ the services from outsourcing.
The order cycle is the duration between the placing of a prescription and the placement of the next order. The procurement cycle in BMW Singapore is as follows
The needs if the organization is identified. The first step of the BMW Logistics office is recognizing what has to be manufactured. Analysis of previous sales and specifications to establish trends and pre-order numbers determine the type and number of resources to be ordered to produce motor cars and motorcycles. More inputs are needed more cars models that are set to be having higher demands.
The source from which the resources will be obtained is identified. The needs of the business are used to consider which source to get the resources. At BMW we look we are coordinated with fellow companies so that one gets supplies from the closer source with time and cost in mind. Products that have exclusive producing plants can only be got from those sources (Christopher, 2016, p. 30).
Though not being a priority, the price of inputs has great consideration. The quality and value of the input are selected with the quality of the desired model. These considerations must be matched with other factors to give an optimal solution.
After an optimal source has been selected, the purchase order is now made. The order must be approved.
The ordered product is delivered to the manufacturing plant with a reasonable means of transport such as road, rail, and water. They must be inspected to be the ones who were ordered. People overseeing transportation process are different from those that authorize to maintain separate roles, so that enhance controls become separated. The invoice is approved by both the supplier and the person receiving the goods. This process ensures that only valid transactions entered. Poorly planned approval procedures can lead massive losses being incurred which are not necessary. Only the authorized person is allowed to pay out cash to avoid instances of theft and fraudulent activities.
The final step in the logistics cycle in the disbursement of payments and storage of the records supporting the transactions that have taken place. Payment methods in BMW company range from direct deposits, credit cards, and promissory notes. Records in BMW are in computers by the use of an enterprise resource system which makes it easy to retrieve them when needed. Security of the system is maintained by the special human resource to protect against cyber-crime and deliberate loss of data. All documents supporting the transactions have to be kept securely for reference, analysis, and audits. Records allow for reference when checks are required. In some situation errors are present, and this always necessitates the review of the documents. The BMW order cycle is comparatively little showing that processes are efficient. According to (Hugos, 2010), all orders arrive on time due to the reasonable period was given. Our company network informs the supplier on any orders required so that no shortages can occur. The ERS used automatically notifies the provider of the needed order level and laid a platform for communication to the head office in cases of inquiries and disagreements. BMW has installed trackers on every cargo and the cargo containers to send electronic signals to the appropriate offices on the location of the goods during transportation (Ivanov, et al. 2009). Tampering with goods while on transit through thefts, burglary, accidents or mechanical breakdown of transport means are detected, alerted and sorted out in time so as to maintain the order period.
BMW has an organized logistics and supply chain management under the supervision of its chairperson. The logistics department assists the company to attain its objectives of value, products, and services efficiently at an optimal level. The staff coordinates activities that connect with production by ensuring sufficient continuous supplies to the production plant and the distribution of the products thereof. It keeps a smooth flow in the manufacturing process. Supplies of the produced goods to the consumers ensures that the firm achieves its objective of profits and value (Blanchard, 2010, p. 7). Every stakeholder has the benefit of the presence of the logistics and the supply chain management department. Shareholders receive wealth on their investments; the government gets tax revenue from profits, and the creditors do not go unpaid. The production plant is the center of BMW company; our core activity is the manufacture of motor cars and this keeps the company operation going on thus sustaining the going concern (Blanchard, 2010, p. 7). Besides, management of business efficiency carries a big bit from the supply chain management. Costs are put to an optimal level, and this significantly cuts down on the cost of running the business to create more profits. Even though, some improvements should be adopted to reduce the effect of factors that tend to increase the logistics cycle to create space for greater efficiency in the future. Failure to adapt to the environment will lead to inefficiencies in the industry resulting in losses which may even lead to closure of business.
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