Business Logistics for Supply Chain Management at GM Holden, Australia

Descriptive Profile of the Organization

Discuss about the Business Logistics for Supply Chain Management.

In the recent time, there are several kinds of issues related to sustainability as well as SCM are faced by today’s business firms not in the national market but also at the global level. But, in order to deal with such issues, specific and innovative ways are used by the business firms to overcome such types of issues. Moreover, in the context of this research report, GM Holden, Australia is selected as an organization to achieve the objectives of this research study. Additionally, this research study would analyze and evaluate the key sustainability management aspects of GM Holden’s current supply chain. Along with this, by using the concepts, theories, techniques and methods of SCM, the current SCM practices of GM Holden would be discussed in the research paper. Moreover, background information about the chosen company GM Holden would be analyzed. Furthermore, practices and strategies in the area of suitability management of the organization would be explained. Additionally, the link or relationship among the SCM and sustainability practices of GM Holden would be discussed. Finally, recommendations would be proposed to fill the gap among these practices.  

GM Holden Ltd is also called and well known in the Australian Automobile market as Holden that is one of the leading and fast growing automobile manufacturers in the nation. Mainly the company Holden operates within the Australian market and its head office is established in Port Melbourne, Victoria. In addition to this, it should also be noted down that, the company is satisfying their customers by manufacturing different kinds Automobile brand in the market. Moreover, the company is established in year as “Saddlery” manufacturer South Australia. It is also a subsidiary company of GM and it is known as General Motors-Holden's Ltd in the Australia. Along with this, it is found that, the company primarily for the vehicle operations of the GM in Australasia. Moreover, the company had offered an extensive range of mainly developed vehicles supplemented by foreign made GM models (GM Holden. 2016).

Holden has offered the supplementary marker manufactured models in offering blueprints: Chevrolet, Isuzu, Nissan, Opel, Suzuki, Toyota and Vauxhall Motors. Beginning 2013, the vehicle lineup includes models from GM Korea, GM Thailand, GM in the US, and self-made Commodore, Caprice, and Ute. Holden in like manner circled the European Opel mark in Australia in 2012 until the brand's Australian defeat in mid-2013. In the same way, a wide range of local vehicle products are produced by the company in the market. At the same time, it is also analyzed that, Holden as a subsidiary of GM motors is also known as one of the largest and leading automaker in the country. For case, in term of revenue generation, sales, level of profit, and market share, the company is the market leader in the Australian Automobile business industry (GM Holden. 2016).

Brief Analysis of the Current SCM Practices of GM Holden, Australia

Moreover, currently the company is also designing, importing, making, selling, manufacturing and producing motor vehicles and related parts, components, accessories within the Australian market. For example, the company is providing different kinds of small cars, hatchbacks, sports cars, sedans, UTE, SUVs. Apart from this, the company is also offering different kinds of accessories and parts of branded cars.  In addition to this, it should also be noted down that, the brands and products of the company are available at the low cost within the market that encourage the customer to buy the product of the company. Moreover, the company had adopted a wide range of marketing and advertising strategies that played a key role in the success of the company (GM Holden. 2016).

On the other hand, it is also accessed that, GM Holden is also manufacture, produce and exports its engines and cars products in the global and international market and this is the main reason that, it is one of the largest and biggest exporter of automobile products in the export market. For example, in the current time, GM Holden manufactures and produces its various vehicles in more than thirty seven nation of the global world under the 13 brand. Moreover, the company has more than 20% market share in the IMM and 77% approximate in the GM Korea.  At the same time, the company has developed its strategic vision and mission to achieve the competitive scope in the market. For case, the vision of the company is to become the most successful and leading auto company of the Australia through excellence, innovative services and true commitment to the customers. In this way, the company is fully dedicated and committed to satisfy the needs and wants of their customers by using different specific strategies and methods (GM Holden. 2016).

Along with this, the mission of the company is to encourage and motivate the customers or clients by offering quality and innovative products with outstanding value and to ensure a hundred percent customer satisfaction. This mission statement of the company reflects that is producing the products for the overall satisfaction of their customers. These mission and vision statements of the company helped it in improving the financial strengths in the market. Moreover, it is also the most trusted and valued company in the Australia in the eyes of customers. Moreover, the company is also known as innovative and reputation company in the market (Marcus, 2010). 

In the Australian automotive industry, GM Holden is dominated high sales by offering a wide range of high powered cars and sports utility vehicles. In the current time, the company Holden is producing, manufacturing, and providing different products including engines and precision mechanical components in the various nations of the global market. But, the company is facing tight competition in the market from the other auto maker such as: Mitsubishi Motors, Toyota, BMW Australia etc.  All these directly affected the success and market share of the company in the market. Moreover, the company is also producing and manufacturing a mixture of locally designed vehicles and imported models (Liu, Kumar, and Aalst, 2007).

Basically, SCM is one of the key significant activity or process that can be defined as management of the stream of goods as well as services that also considers progress, and storage of row material, work in progress inventory and complete goods from the point of origin to point of consumption. Along with this, it should also be noted down that, in the recent time, GM Holden is using and adopting different kinds of innovative, specific and dynamic SCM practices, activities, methods and strategies in order to bring innovation and development within the supply chain process (Awad, and Nassar, 2010). For example, Holden propose, plan, implement, control and review all the supply chain activities for the purpose to build competitive infrastructure, create net value and reduce the overall operational costs. Moreover, Holden is also developing and creating alliances with its key suppliers. For case, according to this, strategy, it develops strong relations with the suppliers and closely works with the suppliers. In the same way, a two way communication strategy is followed by Holden to manage the relationship with the suppliers (Coyle, Langley, Gibson, Novack,and Bardi, 2008).

In addition to this, the company had also focused on incessant development objectives with the aim to fulfill values for both the parties. For case, the company is creating a specific and dynamic platform for resolution of supply chain problem. This system is helping the company in improving the current supply chain processes within the company. Furthermore, it is also found that, the company is also engaged in process of collaborative strategic sourcing that ensure the availability of the suppliers and reduce the total cost of the organization. This approach is also helped Holden in enhancing the responsiveness to the changing needs, wants and demands of customers (Bulgak, and Pawar, 2006). On the other hand, the company had focused on the total cost of ownership not price. For instance, as per this strategy, Holden analyze TCO and bring improvements in the entire procuring and consuming processes. Along with this, Holden is also review inventory quantities on a regular basis and develops specific levels of control to minimize the risk. At the same time, it is also accessed that, the SCM strategies, and method used by Holden follow all the procedures and policies in an appropriate sequence and structure (Dinitzen, and Bohlbro, 2010).

Moreover, the company is also use and follows a hybrid approach within the SCM process that play a key role in combining a centralized strategy to gain consensus with decentralized implementation to get better service. Additionally, company hired the supply chain managers with diverse supply chain management knowledge, strong communication skills, and relation management skills so that they can think strategically and create the value for the company as well as customers (Hill, 2011). Furthermore, the company uses innovative and best technologies according to the supply chain process.

But, before using any technology within the supply chain process, Holden monitor and analyze all the process that needs improvements and select those technologies and tools that can best satisfy those process needs improvements. In the same way, Holden try to find specific ways to adopt innovative technologies and produce beneficial information (Cai, Liu, Xiao, and Liu, 2009). Moreover, the SCM process of company has a very strong supply chain group with the appropriate set of skills. Furthermore, Holden also develops consensus demand and use strategic sourcing that offer competitive scope to the company. For example, GM Holden had integrated sourcing as well as engineering in the SCM. Additionally, it also focuses on the inventory, time and use performance metrics to measure the performance continuously (Hugos, 2011).

In today’s time of globalization and competitive business era, it is more important for the business firms or companies to adopt and implement and follow specific sustainability practices and strategies in order to survive in the market. For example, sustainability practices help the companies in achieving their key and strategic organizational vision and mission through social welfare (Sauerbrey, 2010). In addition to this, GM Holden had adopted different types of sustainability activities and strategies in order to achieve competitive advantages over the competitors improve image, goodwill and reduce certain costs. For example, GM Holden prepares and produces a sustainability report at the end of financial years for the key stakeholders that indicate its performance against the social welfare objectives (Brennan, 2011).

Moreover, this sustainability report provides a clear overview with regards to social, government, economic and environmental performance of the company. For case, this sustainability report is also indicates the corporate Social responsibility of the company. This sustainability report is developed by the company for the purpose to enhance the organizational reputation, value & image and achieve competitive advantages in the front of key stakeholders (Mullerat, and Brennan, 2005). Moreover, Holden is also follows the key performance indicators to presents its sustainability performance. For case, finance, social, economic and environmental are the key performance criteria used by Holden in the Australia. On the other hand, the company is adopting specific and innovative information technology and systems in order to bring development and improvements in its current sustainability practices (Cornelissen, 2011).

At the same time, the principles of ethics, professional codes of ethics & conduct, and environmentally and socially responsible principles are also used by GM Holden. The company is also performing its CSR related functions as it gives financial supports to the charities organizations. GM Holden had introduced and proposed a lot of educational programs in the Australia to encourage the learner and kids to educational institutes. Moreover, it had offered various scholarships and grants to the learner so that they can fulfill their objectives. Furthermore, the company it employees strictly follow the ethical codes of conducts, rules, regulations and principles in performing business practices. Moreover, the company promotes social and physical environment of world (Idowu, and Filho, 2008).

There is no gap among the supply chain management as well as sustainability practices adopted by the GM Holden. It is because there is a strong link/connection and relationship exists between SCM and sustainability practices. It indicates that, GM Holden use sustainable supply chain practices that help it in archiving the competitive scope, minimizing the operational costs, and improving the overall efficacy (Perez, and Leonard, 2013). For example, “Greening the Supply Chain” program of the company states that both sustainability and SCM are interrelated and connected. On the other hand, it should also be noted down that, the company Holden along with the WEC (World Environment Centre) is launched this programs to improve and bring innovation in the supply chain management practices, improve the supplier’s environmental performance (Keinert, 2008).

Moreover, the technologies and information system tools used by GM Holden are more sustainable because they don’t create any issues for the environment. For case, the technologies used by the company in its manufacturing units are pollution and noise free that not create environmental issues. On the other hand, the company is also enhancing the sustainability of manufacturing process in the supply chain. At the same time, it is also found that, with the help of green supply chain strategy is company is creating a lot of tangible and intangible benefits for the suppliers in term of water reduction, improved efficiency & energy. In the same way, it can be said that, there is no gap among these practices of the company (Mallin, 2009).

On the basis of above discussion, it can be suggested that, if there is any gap among the sustainability and SCM, company should adopt specific and dynamic business strategies in order to understand the impact of sustainability on the supply chain. Moreover, social and environmental challenges must be identify and create unique strategies to deal with such issues effectively (Shah, 2008). On the other hand, it is also recommended that, business firms should also focus on developing a well as communicating the clear cut expectations by creating supplier code of conduct that would be essential. Moreover, the company must also focus on creating and introducing training and skill creation programs and it join industry collaboration for the purpose to fill the gap among the SCM and sustainability. At the same time, it is also important to encourage innovation and development within the company and use sustainable technologies and information system so negative impact can be overcome. Moreover, using robust tracking tools within the supply chain can also be important for company to deal with environmental issues. For case, a company should integrate supply chain sustainability criteria within the procurement process (Visser, 2011).     

Conclusion

Based on the above facts and analysis, it can be concluded that, GM Holden is one of the leading automobile manufacturing company in the Australia that satisfying the needs of its customers by providing quality auto product at the best costs. On the other hand, it is also found that, the company Holden had adopted various specific and innovative supply chain practices and sustainability practices that helped it in gaining the competitive scope, reducing the costs, and improving the financial profits. Moreover, it is also concluded that, there is no gap between the sustainability and SCM practices of Holden. But, the company can also improve such practices by using and considering innovative and dynamic strategies effectively.

References

Ackerman, K.B. (2007). Fundamentals of Supply Chain Management. USA: DC Velocity Books.

Awad, H.A.H. and Nassar, M.O. (2010). Supply Chain Integration: Definition and Challenges. Multi Conference of Engineers and Computer Scientists, 1, pp. 17-19.

Brennan, S. (2011). Corporate Social Responsibility: The Corporate Governance of the 21^st

Century. USA: Kluwer Law International.

Bulgak, A.A. and Pawar, A. (2006). Analysis of postponement strategies in supply Chains. Istanbul Ticaret Üniversitesi Fen Bilimleri Dergisi, 5(9), pp. 1-21.

Cai, J., Liu, X., Xiao, Z. and Liu, J. (2009). Improving Supply Chain Performance Management: A Systematic Approach to Analyzing Iterative KPI Accomplishment. Decision Support Systems, 46 (2), pp. 512–521.

Cornelissen, J. (2011). Corporate Communication: A Guide to Theory and Practice. USA: SAGE.

Coyle, J.J., Langley, C.J., Gibson, B., Novack, R.A and Bardi, E.J. (2008). Supply Chain Management: A Logistics Perspective. USA: Cengage Learning.

Dinitzen, H.B. and Bohlbro, D. (2010). Value-Added Logistics in Supply Chain. Denmark: Academica.

Goel, R.K., Singh, B. and Zhao, J. (2012). Underground Infrastructures: Planning, Design, and Construction. USA: Butterworth-Heinemann.

GM Holden. (2016). About Us.  Available At:  https://www.holden.com.au/ {Accessed On: 26^th Aug, 2016.}

Hill, A.V. (2011). Encyclopedia of Operations Management: A Field Manual and Glossary of Operations Management Terms and Concepts. USA: FT Press.

Hugos, M.H. (2011). Essentials of Supply Chain Management. USA: John Wiley and Sons.

Idowu, S. and Filho, W.L. (2008). Global Practices of Corporate Social Responsibility. USA: Springer.

Keinert, C. (2008). Corporate Social Responsibility as an International Strategy. USA: Springer.

Liu, R., Kumar, A. and Aalst, W.V.D. (2007). A formal modeling approach for supply chain event management. Decision Support Systems, 43(3), pp. 761-778.

Mallin, C.A. (2009). Corporate Social Responsibility: A Case Study Approach. UK: Edward Elgar Publishing.

Marcus, I. (2010). Agile Supply Chain: Strategy for Competitive Advantage. Journal of Global Strategic Management, 7, pp. 5-17.

Mullerat, R. and Brennan, D. (2005). Corporate Social Responsibility: The Corporate Governance of the 21st Century. USA: Kluwer Law International.

Perez, M.A.G. and Leonard, L. (2013). International Business, Sustainability and Corporate Social Responsibility. UK: Emerald Group Publishing.

Sauerbrey, M. (2010). Attitudes Toward Business Ethics. Germany: GRIN Verlag.

Shah, S. (2008). Sustainable Practice for the Facilities Manager. USA: John Wiley & Sons.

Visser, W. (2011). The Age of Responsibility: CSR 2.0 and the New DNA of Business. USA: John Wiley & Sons.