Nissan Supply Chain Management - 829 Words

ANALYTICAL REPORT: EFFICIENT JIT SUPPLY CHAIN MANAGEMENT INTRODUCTION 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†¦show more content†¦The stock retained at the cross-dock is sufficient enough to supply the factory for the next 16 hours before the next arrival of the next supplier collection. iii. ‘Line-haul’ Deliveries The load will leave the cross-dock based on the delivery manifest in order to ensure they meet the required time. The drivers must follow the delivery manifest as they are liable for the correct time delivery and also the location of the delivery. In addition, the drivers must take off-loading and on-loading time as considerations to avoid any late deliveries. At the factory, there is a computerised load receipt system which will act as a proof that the factory already received their package. Furthermore, the computerised load receipt also identifies the re-usable packaging where the line-haul driver will bring along to cross dock. The packaging that being returned to cross-dock will be sent back to the suppliers during the supplier collection process which will be beneficial to reduce wastage and keep the environment clean. CONCLUSION As a conclusion, the operation based on the logistic scheme has helped Nissan to reduce their inventory levels from 12 to 2.5 and finally 0.7 days. The logistic scheme is also proven in reducing the total number of transportation vehicle travel and minimize fuel consumption. 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