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Asian Journal of Management Cases
DOI: 10.1177/097282010800500203
Asian Journal of Management Cases
Mark K.H. Goh and Miti Garg
ChangAn Automotive Co. Making Supply Chains Work
http://ajc.sagepub.com/cgi/content/abstract/5/2/57
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Lead Article
C
HANGAN AUTOMOTIVE CO.—MAKING SUPPLY CHAINS WORK
Mark K.H. Goh
Miti Garg
The car has evolved from being a horseless carriage to becoming a sophisticated engineering
marvel. Accordingly, the challenges of modern day automotive supply chain
management have become increasingly complex. This article describes the situation
faced in a Chinese automotive supply chain by ChangAn Auto Co. Ltd (ChangAn)—
China’s fourth largest automotive manufacturer. The article elaborates upon the supply
chain visibility and speed-to-market issues for ChangAn in the context of China’s fast
growth market realities and institutional environment.
Keywords:
Chinese automotive sector, supply chain visibility, speed-to-market, domestic
growth, internationalization, auto-logistics
‘
Quality and customer service are moving targets’
J.D. Powers Automotive Research
M
AJOR DRIVERS IN THE AUTOMOTIVE SUPPLY CHAIN
The automotive supply chain has witnessed several paradigm shifts over the years. Henry
Ford fi rst ushered in the era of mass production by creating the fi rst ‘moving assembly
line’ in the early twentieth century. His invention reduced the time required to roll out
the Model T from 728 hours to 1.5 hours. The Japanese then revolutionized the industry
in the 1970s, rewriting the rules of production, shifting the focus from mass to lean
manufacturing and from economies of scale to economies of scope and speed. The tale of
the automotive industry is a saga of growth, evolving from craft production to mass production,
and from mass manufacturing to lean supply chain management. A signifi cant
contributor to the Gross Domestic Product (GDP) of any economy, the automotive sector
A
SIAN JOURNAL OF MANAGEMENT CASES, 5(2), 2008: 57–71
S
AGE PUBLICATIONS LOS ANGELES/LONDON/NEW DELHI/SINGAPORE
DOI:
10.1177/097282010800500203
Acknowledgements:
The authors wish to thank Mr James McAdam of NOL for making the necessary
introductions, Mr Rick Li for graciously providing the interviews, and NOL for funding the research under
the NOLF Grant (Grant number R-385-000-017-720).
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leads all other sectors in Research and Development (R&D) expenditure and is marked
by above average labour productivity and high capital intensity. The automotive industry
forms a major chunk of the manufacturing sector and supports several other upstream
and downstream industries such as the production of components, procurement of raw
materials, after-sales services, dealerships and car fi nancing. An average car consists of
between 3,000 to 7,000 parts, 65 to 75 per cent (by value) of which are manufactured by
component suppliers (Financial Times 1995). From a supply chain perspective, the automotive
supply chain is highly complex, with a mesh of several tiers of suppliers, long product
development and planning cycles, extensive production and assembly processes and a
widespread network of independent dealers. During lean production, the responsibilities of
design and sub-assembly of modules are increasingly being transferred to Tier 1 suppliers.
Entire sub-assemblies have relocated to be close to fi nal assembly lines, to ensure a continuous
stream of parts, to shorten the supply chain and to decrease the lead time and
reliance on logistics (Edmonson 2003). At the same time, component manufacturers have
to comply with various technical standards to ensure that quality is assured in the components
as well as the fi nished product, since any defect may lead to costly product recalls
and can result in large fi nancial losses to the car manufacturer.
The need to respond to an increasingly diverse set of customers has generated a large
proliferation of segments and models, fundamentally reshaping the automotive supply
chain. Car manufacturers today compete on accelerating the rate of new-model introductions
and by offering greater add-in features to woo and delight customers. Spoilt for
choice, customers are increasingly choosing products based on consumer attributes such
as style, reliability, performance, fuel effi ciency, safety features, emission compliance,
on-time delivery and after-sales service. The automotive supply chain is largely producer
driven rather than buyer driven. As such, information technology plays a critical role
in coordinating the vast network of suppliers and logistics service providers by improving
supply chain visibility. When compared to the after-sales service supply chain,
the manufacturing supply chain has a relatively predictable demand with limited Stock
Keeping Units (SKUs), homogeneous offerings and a possible requirement of multiple
transport networks for delivery. The automotive dealers often attempt to shape demand
to overcome the supply-demand imbalance since the costs of holding inventory are high,
especially for land-scarce city locations.
T
O THE LAND OF THE YANGTZE RIVER—PRODUCTION
The automotive industry is currently witnessing slow growth and low value creation in
the developed economies. The risk of excess capacity, decreasing product life cycles and
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increasingly razor-thin margins (as low as 18 USD per unit on low-end cars in the US) are
coercing automakers to seek new avenues for growth and speedier ways to produce and
deliver vehicles ‘by taking out the lead time’ (Potterf 2005). To take advantage of the low
wages and to tap the attractive markets, the world’s largest automakers have globalized
and are fl ocking to emerging markets such as India, China and Eastern Europe.
China, with a population of over 1.3 billion, high economic growth and low per capita
car ownership rate, presents an attractive opportunity to the world’s leading automotive
manufacturers. Such huge business opportunities are rare and the opening of the Chinese
automotive market was harnessed by the government, which declared it as a ‘pillar industry’
in 1985 and infused it with fi nancial aid.
China has now emerged as a major manufacturer of fi nished vehicles. It is expected to
overtake Germany and become the world’s third largest automotive manufacturer after
the US and Japan (Xinhua 2006). The world’s leading global automotive manufacturers;
Ford (US), Toyota (Japan), Volkswagen (Germany), Daimler Chrysler (Germany-US) and
Suzuki (Japan) have already partnered, in various forms, with the domestic automotive
players; the ‘Big Five’ of China—SAIC (Shanghai), FAW, Dong Feng Motors (Wuhan),
ChangAn (Chongqing) and Chery Automotives, to cater to the large customer base.
A
LLURE OF THE FOUR WHEELER—CONSUMPTION
Owning a car (either an indigenous brand, a domestically manufactured foreign brand
or an imported brand) is perhaps the most expensive purchase in an individual’s life,
second only to owning a house. It is a status symbol in China. Imported cars such as the
Audi, Ferrari and BMW dominate the high-end luxury car segment in terms of appeal and
quality, while domestic brands are fast catching up in quality by organizing new market
launches in the compact, low and mid-size segments. The consumption patterns are
shifting from company sponsored to privately owned vehicles as the ‘bicycle kingdom’
transforms and the purchasing power of the Chinese middle class grows. About 90 per
cent of the cars sold in China are manufactured within the country. However, the Chinese
customers in almost all segments are price sensitive. Nevertheless, market penetration
is much lower than the world average. Almost 80 per cent of the customers are fi rst time
purchasers (Webb 2006). The market for high-end imported cars is relatively small and is
confi ned to larger cities such as Shanghai, Beijing and Guangzhou. The price of imported
cars and components is expected to fall even further, given China’s entry into the World
Trade Organization (WTO) in 2001; a radical event expected to infl uence the domestic
and imported automotive manufacturing industry.
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With the combined presence of over 100 automotive manufacturers in China, the risk
of production overcapacity especially among the domestic players, decreasing margins
and decreasing tariffs on imported cars has led to intense competition in the marketplace.
The accelerating demand in the domestic market and a small but developing export market
is already coercing Chinese manufacturers to develop clean technology and cheaper
and faster cars. In the fast moving auto business environment, where the customer is
in charge, automotive technology is evolving at a breakneck speed and regulatory issues
are pressing for speed-to-market in the delivery of components and fi nished vehicles as a
potential source of competitive advantage for automotive manufacturers such as ChangAn,
China’s fourth largest car manufacturer.
C
OMPANY BACKGROUND
Established in 1957, ChangAn was a successful arms manufacturer jointly set up by the
People’s Liberation Army and the Chinese people. Located at Chongqing, on the Yangtze
River, it entered China’s car manufacturing industry with the launch of its fi rst jeep, called
Yangtze River. ChangAn began manufacturing minicars in 1983 and has since grown to
the enviable position of China’s number one mini-vehicle manufacturer.
ChangAn develops both cars and car engines. Its product range includes minicars,
sedans and buses. It has three production bases located in Chongqing, Nanjing and Hebei
where nine car making ventures and independent companies that manufacture military
products are situated.
ChangAn is a fast expanding group. Since its establishment, its production and sales
of cars have increased by 30 per cent annually and reached 580,000 cars in 2004.
1 It
produced 708,000 vehicles and achieved sales of Renminbi (RMB) 43.2 billion in 2006,
a 43 per cent increase from 2005, with a net profi t increase of 252 per cent annually to
RMB 2.29 billion (China Business Daily News 2007a). The brand value of ChangAn rose
to RMB 13.358 billion in 2005 from RMB 2.5 billion in 1998, and it was ranked among
the ten top most valued domestic brands in China (http://www.chagan.com). Akin to its
competitors, ChangAn’s rapid growth may be attributed to astute and strategic tie ups with
global leaders such as Ford, Suzuki and Mazda, keen on penetrating China’s promising
and unexplored automotive market.
ChangAn caters to the large Chinese market and has launched its own indigenous brands,
as well as a wide range of vehicles (basic, SUVs and special vehicles such as police vans)
1. Retrieved from http://www.changanauto.com/group/about.htm on 8 May 2007.
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in the high, mid and low-end segments with its collaborators such as ChangAn Ford,
ChangAn Suzuki and ChangAn JMC (Jiangling Motors Company).
ChangAn Ford
ChangAn Ford, set up in 2001, manufactures Ford Focus, Fiesta and Mondeos for the domestic
Chinese market. The Ford Motor Company, a late entrant into China’s burgeoning
automotive sector partnered with ChangAn, in a fi fty-fi fty, USD 98 million joint venture.
The ChangAn Ford facility, located in Chongqing’s northern industrial zone employs
1,600 workers. The facility began production of the Ford Fiesta in 2003. It consists of a
body shop, paint shop, a technical development centre (which works on integrating and
localizing products) and a fi nal assembly line (Gallagher 2006).
ChangAn Ford initially targeted the small and mid-sized car segment in China. ChangAn
cars were tailored for the family and the small business entrepreneur. Depending on the
engine and transmission, the Ford Fiesta was priced between USD 10,725 and USD 15,435
and catered to the 25–35 year old Chinese customer.
ChangAn Suzuki
Set up in May 1993, the 287,000 m
2 Chongqing ChangAn Suzuki facility was built with an
initial investment of USD 170 million and a registered capital of USD 59.98 million. In the
beginning, ChangAn Suzuki produced the Alto Hatchback (SC 7081) and Gazelle Sedan (SC
7130) in the price range of USD 5,342 to USD 7,551 (Gallagher 2006: 29). Today, ChangAn
Suzuki has 380 dealerships and a sales and service network which covers 210 large and
medium-sized cities in China. The ChangAn Suzuki manufacturing plant focuses on the
production of economical cars (below 1.3 liters) with low emission and high emphasis
on quality (Gallagher 2006: 29).
ChangAn JMC
Located in Nanchang, ChangAn JMC, a tie up between ChangAn and Jiangling Motors
Co. (a local Chinese company) was established in 2004 to produce the Jiangling Landwind
SUV. Since then, ChangAn has bought over JMC.
ChangAn’s Indigenous Brands
The transfer of expertise and technology from foreign partners has benefi ted domestic
automotive manufacturers in China and has helped them to speed up the development
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of indigenous brands. ChangAn follows the strategy of the ‘Four Borrows’—borrowing
technology, capital, dealers in overseas markets and production space with collaborators.
2
Like most Chinese manufacturers, ChangAn has adapted its products to suit the tastes of
the Chinese customer. In 2004, ChangAn launched ChangAn CM8, its fi rst indigenously
developed vehicle at the Beijing International Auto Show. Other models designed and
manufactured in-house are the Chinese Dragon, City Rainbow, SC6360 Series, SC6391,
SC6350C and SC6371 Sports Series.
A
CCELERATING AHEAD
In spite of quality concerns, Chinese manufactured cars are likely to fl ood the international
market in the future. Chinese car exports, which exceeded imports for the fi rst time in
2005, have doubled (173,000 units in 2005 and 78,000 in 2004).
3 China exported more
than 340,000 units in 2006 valued at USD 1.58 billion, an increase of 120.5 per cent as
compared to 2005. Again, this was much higher than the import of 160,000 units in 2005
which rose by just 8 per cent (Chinadaily.com). The promising growth of China’s domestic
automotive market and a consistent increase in the export of fi nished vehicles suggests
that China will emerge as a global giant in this sector. ChangAn is already a strong player
in the local market and has its sight set on the international arena with expansion plans
into the United States in the fi nished vehicle export category:
Expansion into the US Market
Globalization is the new challenge for Chinese fi rms keen on establishing an internationally
recognized brand name and a global footprint. ChangAn entered the US market by establishing
the company Tiger Truck to manufacture, import and distribute trucks based on
its own designs from its fi rst assembly plant in Jasper, Texas. Its strategic location is wellsuited
for vehicle shipments to destinations throughout North America, Central America
and the Caribbean basin. The fi rst vehicles produced by Tiger Truck with the ‘Made in
U.S.A’ label will be launched in 2008 (China Business Daily News 2007b).
2. Retrieved from http://www.changanauto.com/group/about.htm on 8 May 2007.
3. ‘China doubles auto exports in 2006’. Retrieved from http://en.ce.cn/Industries/Auto/200701/01/
t20070101_9963593.shtml on 12 April 2007.
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Export to Other International Markets
ChangAn exported more than 20,000 vehicles in the fi rst nine months of 2006 as compared
to 15,000 vehicles in 2005. The export of vehicles is expected to grow fi ve-fold to 100,000
by 2010 (Shen and Liu 2006). The export of fi nished vehicles is handled by ChangAn’s
logistics joint venture with Minsheng Industrials and APL called ChangAn Minsheng
APL Logistics (CMAL). The customs clearance process coordinated by CMAL requires
approximately 24 to 48 hours and uses Roll On-Roll Off (RO-RO) vessels for the export of
fi nished vehicles from the port of Shanghai.
C
HANGING GEARS
The major manufacturing sites of ChangAn and its joint venture partners are located away
from the city, in the industrial parks of Chongqing, Nanchang and Nanjing. Chongqing is
surrounded by steep-sided hills and is located at the confl uence of the Yangtze and Jialing
Rivers. At the same time, Chongqing, with access to natural resources, close proximity to
the Three Gorges hydroelectricity project and availability of low cost labour not only has a
history of engine and vehicle manufacturing (Chongqing is China’s motorcycle production
capital) but also has the required resources to be an ideal site for automotive manufacturing
(Gelb 2004). While it lags behind its coastal counterparts such as Tianjin (Toyota) and
Shanghai (Honda), the city inaugurated as a municipality in 1997, is upgrading its status
to that of an ‘Autotown’. This is favoured by the Chinese government’s ‘Great Western
Development Policy’, which supports the progress of China’s western region and has attracted
foreign investors such as Ford to the region (Gelb 2004). Despite the preferential
treatment by the Chinese government, the rocky topography and an unusually large
number of bridges and tunnels deter easy and smooth transportation by road. Due to its
hilly geography and proximity to the Yangtze and Jialing Rivers, supply chain management
and the transportation of vehicles and parts pose a serious challenge for ChangAn supply
chain managers and logisticians. The immediate burning question is obvious: should
ChangAn relocate to the coastal areas of Tianjin (northeast China) or Shanghai (central
China) to be close to the rich base of automotive suppliers as observed in the case of its
competitors such as Toyota, FAW and SAIC (see Exhibit 1) or, should ChangAn continue to
operate from its current inland location around Chongqing, and exploit the comparative
advantage of natural resources, cheap labour force and favourable government policies
to develop an edge over its competitors through effi cient supply chain management? In
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the following section, we discuss how supply chain managers overcome the challenges
posed by ChangAn’s unfavourable location, and determine a supply chain strategy for
ChangAn.
B
EHIND THE WHEEL/CHANGAN’S SUPPLY CHAIN STRATEGY
To cope and survive in a competitive industry environment, an effi cient supply chain
strategy is imperative since supply chain management requires the effective fl ow of
materials, information and fi nances within the supply chain. For ChangAn, the two-fold
objectives of supply chain management are:
1. Link all the customers (dealers), suppliers, factories, warehouses, distributors,
carriers and other trading partners, i.e. create a smooth physical fl ow of goods.
2. Connect all the customers, suppliers, factories, warehouses, distributors, carriers
and other trading partners so that there is an effi cient (cheap) and effective (timely
and accurate) fl ow of information.
L
INK ALL CUSTOMERS, SUPPLIERS, FACTORIES, WAREHOUSES, DISTRIBUTORS,
C
ARRIERS AND OTHER TRADING PARTNERS (PHYSICAL FLOW)
ChangAn has a vast network of component suppliers and fi nished vehicle dealers. Most of
ChangAn’s component suppliers are located within China, which has emerged as a large
manufacturer of components and was the second largest component exporter to the US
after Mexico in 2006, with exports valued at USD 6.9 billion, an increase of 28.1 per cent
from 2005 (Chappell 2007). The fi rst challenge that the managers at ChangAn face is the
detailed coordination of procurement of supplies from its numerous suppliers located
throughout China and also abroad. To overcome this location disadvantage, river transport
by barge is used as an alternative to road and rail transport. This is because Chongqing is
the biggest inland river port in inland China and much of ChangAn’s transport of supplies
and fi nished vehicles is on barges using the Yangtze River. Table 1 compares the cost,
distance and time required for each mode. ChangAn adopts a Just-In-Time (JIT) strategy
for the procurement of components. JIT implies that long lead times are out and speed is
in. This naturally requires a shift from a labour intensive to a material intensive business
model with a propensity to buy rather than make the components. The adopters of the
JIT strategy stress on lean inventory and strive to procure the right material at the right
time and in the right quantity. We now discuss how ChangAn coordinates the inbound and
outbound logistics for its automotive supply chain and creates a physical fl ow of goods.
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Inbound Logistics
The logistics costs constitute a large percentage of the total production costs of a car,
particularly in China. ChangAn joined with APL and Minsheng Industrials in 2002, to
ensure speedy and effective transportation, storage, distribution, import and export of
supplies and fi nished vehicles (CMAL Annual Report 2006). CMAL has identifi ed several
supply chains within the area of inbound logistics and coordinates the fl ow of parts from
the suppliers for ChangAn (Exhibit 2):
1. For the remote suppliers, several milk runs are undertaken. In a milk run, the
auto parts are cross-docked and transported to the Container Yards (CY) located at
Shanghai, Wuhan and Nanjing by truck. The average milk run from Shanghai for
inbound parts takes about 10 days.
2. In the dedicated milk runs, the auto parts are collected and directly transported to
the container yard.
3. The auto parts are then transported to the Regional Distribution Centre (RDC)
located at Chongqing, through the Yangtze River. Depending on the specifi cations
for spare parts, the RDC holds about 1.5 to 7 days of inventory.
4. In a few cases, the auto parts are delivered using a Vendor Managed Inventory
(VMI) system to the Chongqing RDC. The VMI holds approximately one month of
inventory. From the Chongqing RDC, the parts are supplied to the respective assembly
plants by truck.
5. Some supplier parts are delivered directly to the assembly line using a technique
known as sequenced delivery. This just-in-sequence approach is usually meant for
Table 1
Cost, Distance and Time Required by Different Modes
Chongqing-
Wuhan Road Rail Barge
Chongqing-
Shanghai Road Rail Barge
Distance
(km)
700 1,000 1,280 Distance
(km)
2,150 2,600 2,400
Transit Time
(Days)
3 6 4 (6
upriver)
Transit
Time
(Days)
3–4 (40 hrs) 7–10 days 8 (11 upriver)
Cost $0.10 per
ton/km
$545/TEU $340/TEU Cost $0.10 per
ton/km
∗
$770/
TEU
∗
$395/TEU
Source:
Kwan and Knutsen 2006.
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those suppliers who are located within the municipality of Chongqing. Exhibit 2
gives the details for the inbound logistics process.
Outbound Logistics
ChangAn uses several modes of transport for the movement of fi nished vehicles.
ChangAn dealers are located in coastal cities such as Shanghai, and other regional cities
and locations such as Chengdu, Kunming, Urumqi, Xinjiang, Wuhan, Hubei, Hunan and
Changsha, in addition to Chongqing. For the distribution of fi nished vehicles to Shanghai
and Beijing, both located about 900 miles away, ChangAn Ford typically ships cars by river
to Wuhan, where they are trucked to Beijing or Shanghai. For transportation to Shanghai,
cars are sometimes transshipped down the Yangtze River. They are transported by truck
to Guangdong, Guangzhou which is more than 100 miles closer to Chongqing than it is
to Shanghai (see Exhibit 3).
E
NABLE SUPPLY CHAIN AS WELL AS MANAGE THE CONVERGENCE OF IT AND BUSINESS
M
ODELS INTO A NEW INTERACTIVE, INTERCONNECTED AND SCALABLE STRUCTURE
ChangAn implemented the Oracle E-Business Suite to communicate with its large network
of suppliers and increase supply chain visibility for better inventory management of components
and parts. Supply chain visibility extends from what inventory the supplier holds
to inbound logistics, WIP, inventory levels, production processes, to what the customer
demand is. Supply chain visibility suggests visibility across the three basic fl ows in a supply
chain: information, products and fi nance. Complete supply chain visibility implies that
clear demand signals are shared amongst all parties, there is seamless fl ow of information
on inventory levels, WIP, fi nished goods and fi nancing. In other words, complete supply
chain visibility can be described as perfect information, perfect execution and perfect
orders.
The degree of supply chain visibility refers to the ease with which one can transfer
information within the enterprise and beyond its four walls. There should be better information
sharing from logistics service providers, who are vital partners for the success
of the supply chain. The enterprise must be able to track the inventory and product
throughout the process (for example, from ordering, to picking, to shipping and delivery).
To gain better visibility, several enterprise wide IT applications such as ERP, RFID, order
fulfi llment software, Transport Management Systems (TMS) and Warehouse Management
Systems (WMS) have been adopted. The key question for ChangAn is whether it should
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invest billions of US dollars for the creation of an effi cient IT system. A few areas where
IT plays a signifi cant role are:
1. Effi cient inbound logistics requires the effective fl ow of information between suppliers
and logistics service providers to ensure the effi cient and speedy delivery
of component parts. Effi cient IT systems will help ChangAn to reduce inventory
storage costs and cycle counting. They will also help to collect accurate information
regarding the inventory and eliminate waste at the factories.
2. By adopting effi cient IT systems, ChangAn can integrate and centralize the management
of human and material assets, production, supply and sales and form a
real-time supply chain involving more than 2,000 suppliers and distributors (Potterf
2005: 2). This will improve the fl ow of information within the organization by augmenting
supply chain visibility for parts procurement, inventory management, production
and quality control, order fulfi llment and attainment of shorter lead times
in the dispatch of vehicles.
3. Rapid product development is a crucial source of competitive advantage in the
automotive sector as fi rms race to beat competition and introduce new models
that cater to the requirements of the targeted market segment. Gaining greater
visibility in production has helped ChangAn achieve shorter turnaround time in
concurrent modifi cations on vehicle parts from 30 to 7 days. ChangAn has already
adopted Oracle’s bill of materials function to execute their Engineering Change
Orders (ECOs). An ECO is used for changes in documents such as processes and
work instructions. Infact, ChangAn’s ECO turnaround time for new vehicle parts has
reduced from 120 to 65 days, thus achieving greater speed-to-design in production
(Potterf 2005: 3).
4. Effi cient IT systems will also help enhance production capability by decreasing the
time required for processing such ECOs. Oracle’s E-Business Suite has also helped
ChangAn in improving the quality of its fi nished products and reducing the lead
times in shipping by automating the order fulfi llment process for the dispatch of
vehicles, thus achieving speed-to-market.
Enhancing IT capabilities within ChangAn has improved the fl ow of information in the
supply chain leading to great savings in operational cost. However, do these savings in
cost justify the heavy investment in IT systems? As ChangAn’s supply chain managers
decide on this crucial aspect, the above overview of the benefi ts of IT in automotive
supply chain management provide the decision variables that must be kept in mind.
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They refl ect the role of IT in achieving improved speed-to-market by saving time across
different stages of the supply chain.
Speed-to-market is critical for time sensitive products and in China the automotive
industry is no different. A mix of various supply chain strategies related to transport, location,
technology and facilities is needed for a sustained optimal outcome for ChangAn.
R
EFERENCES
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12 April 2007.
Chappell, L. 2007. ‘China’s Parts Exports to U.S. Rise 28 per cent’,
Automotive News, 81(6244): 1.
China Business Daily News. 2007a. ‘ChangAn Automotive: No.4 Auto Maker in China’, 5 March,
p. 1.
———. 2007b. ‘Tiger Truck to Build US Assembly Plant for Chinese Trucks’,
China Business Daily
News,
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C
HANGAN AUTOMOTIVE CO. 69
A
SIAN JOURNAL OF MANAGEMENT CASES, 5(2), 2008: 57–71
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Exhibit 1
Location of Major Vehicle Manufacturers in China
Source:
Reuvid and Li 2003.
Downloaded from
http://ajc.sagepub.com at K.R.E.T'S TRIDENT INSTITUTE on April 11, 2010
Exhibit 2
Processs Map for Inbound Logistics
Source:
Personal communication with Rick Li, Deputy General Manager, CMAL.
Downloaded from
http://ajc.sagepub.com at K.R.E.T'S TRIDENT INSTITUTE on April 11, 2010
C
HANGAN AUTOMOTIVE CO. 71
A
SIAN JOURNAL OF MANAGEMENT CASES, 5(2), 2008: 57–71
Exhibit 3
Process Map for Outbound Logistics
Source:
Personal communication with Rick Li, Deputy General Manager, CMAL.Downloaded from http://ajc.sagepub.com at K.R.E.T'S TRIDENT INSTITUTE on April 11, 2010
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