A Methodology for Supply Chain Design An Application to Auto-part Industry

A supply chain is an alliance of independent business players, such as supplier, manufacturing, and distribution processes that perform the critical functions in order reach a business objective delivering value to customer and companies. Strategic design decisions as number of supply chain levels, numbers of nodes at each level, distance between nodes and definition of operations for each node contribute for better performance of the production and delivery of a variety of products to the customers. This paper presents an auto-part automotive supply chain redesign case study that has as objective to delivery modules to the assemble plant at lowest cost, high quality, and short lead time. It starts with a review of the legal procedures as the fees and taxes of the concerned States and after an analysis of logistics costs, values of labor, agility of the entire system and competitiveness, essential for the automobile company in the current scenario, are considered. At the end indexes of performance of the actual and proposed supply chain are compared to show the advantages of a new design.