Fiat Auto Spa Case Study Research Proposal

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In addition, Fiat today is struggling with the made-to-customer order performance levels, with 90% of cars delivered in six weeks and 100% of cars delivered in eight weeks. While having slightly better performance with made-to-deliver manufacturing workflows, Fiat is at a significant competitive disadvantage relative to its European and global competitors. The made-to-customer and made-to-dealer processes need significant revamping if any new logistics system is to be successful.

Third, the proliferation of new products throughout Fiat's division needs to be carefully planned for from a logistics standpoint if any system implementation is to be successful. As the case study states, Fiat has designed 18 new models which includes coverage of additional market segments such as mini-vans and sports cars, in addition to launching 20 new major projects. All of these major initiatives taken together is going to lead to massive amounts of confusion in the event Fiat does not prioritize them. After prioritizing them, Fiat must take into account the logistics system and process integration points into each of these strategic initiatives and design any new logistics system accordingly.

Finally the new logistics system needs to first concentrate on re-defining processes throughout the manufacturing supply chain first, then address the logistics with channel partners including dealers. As the case study states, any logistics system should not require intensive it support, as this organization is already deluged with requests according to the case study. This translates into the need for any proposed logistics system to have a highly process-centric approach developed first. Only by isolating which logistics processes, both from a supply chain and reseller standpoint, can Fiat hope to be successful.

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Identify the constraints within which the logistics planning team must work.

The most critical constraint for Fiat to overcome is the process inefficiencies in their made-to-customer and made-to-dealer workflows. These time lags are exacerbating the time loss in logistics, in turn making supply chain coordination with key suppliers difficult. The selection of new suppliers will only lead to greater confusion until the made-to-customer and made-to-dealer workflows are made more aligned to customers and dealers specifically.

Second, another major constraint that needs to be overcome is the approach to inventory holding compounds Fiat relies on today. As defined in the case study, this is a highly time-intensive set of processes. The inventory holding compounds are a significant cost burden on the operations of Fiat and could be significantly reduced if the company concentrated on better supply chain visibility from customers to manufacturing and fulfillment.

Third, the decision to rely on making every configuration option available to a dealer in the context of the made-to-dealer workflows is daunting and increasing the complexity of the Fiat logistics system. Allowing dealers to order virtually any combination of car is a major constraint on the system today. This constraint however is a critical one for staying aligned with customers' preferences and needs. Interpolating the customization requirements of dealers and the ability to streamline the logistics processes is critical for Fiat to stay profitable while retaining its dealer channel. Fourth, and most important, the constraint of not impacting existing production scheduling yet supporting it is crucial. Logistic systems from the competitive models analyzed have a direct impact on production scheduling. Fiat….....

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