Managing the supply chain for globally integrated products
An Exel case study

Page 1: Introduction

Today many of the products that we consume have been brought to us through globally integrated distribution systems. Striking examples are the fruit and vegetables that we purchase in our local supermarket that arrive fresh from far flung corners of the globe, and the motor vehicles that we drive around in which contain components from many different countries. We tend to take the delivery of...
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Page 2: Supply chain management

Based on years of experience and application of state of the art technology, Exel is able to design improved supply chain systems for organsations which add more value for consumers. Creating an effective supply chain involves not only increasing the speed of delivery, but also the quality of delivery – so that the end-consumer will benefit from more desirable and hence more valuable...
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Page 3: Just-in-time and lean production

Just-In-Time (JIT) is a very simple idea but one that is essential in modern supply chain management. JIT sets out to cut costs by reducing the amount of goods and materials a firm holds in stock. JIT involves: producing and delivering finished goods ‘just in time’ to be sold partly finished goods ‘just in time’ to be assembled into finished goods parts ‘just in...
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Page 4: The challenge for supply chain management

When Volkswagen decided to produce its new Beetle model, the goal was to transfer the lean manufacturing technique and highly effective just-in-time supplier park model from the VW/SEAT assembly plant in Martorell in Spain, to Puebla in Mexico. The solution Exel has worked with car manufacturers to develop a park system of managing end operations of the supply chain for motor vehicle assembly...
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Page 5: The results

Adopting the supplier park model in Mexico has helped VW to reach its present level of 1,380 vehicles per day. Exel is providing supply chain services not only for the new Beetle, but also for the A4, a redesigned Jetta and also the Golf models. As an experienced logistics leader, operating globally, Exel has an established infrastructure in Mexico, servicing clients such as Procter & Gamble...
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Page 6: Conclusion

Supply chain management is an exciting and important area of study. Specialist companies like Exel are able to save the world’s leading businesses large amounts of money, time and effort by creating an effective supply chain. Next time you see a new VW Beetle you will be better able to appreciate that the high quality of the product and its value for money are not only a result of high...
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