Introduction
Today’s realities have shown how important it is to have a well-established system for supplying critical components to continue production at the plant. The industrial complex was practically ‘frozen’ at the end of 2021, mainly due to the lack of semiconductors as important components for the production of any equipment. This study will look at four major types of flexibility in the supply chain, namely scheduling, logistics, location, and supply chain. These aspects of the supply chain will allow the most effective implementation of possible solutions in the current post-pandemic situation of severe disruptions in the supply chain of specific components and the inability to replace them in short to medium term.
Main body
Firstly, in terms of scheduling, one of the most efficient companies in assembly-line production is the Japanese Toyota Corporation. One of the most important components of the long-term success of Toyota Motors is the precise timing of the delivery of components to the warehouses and production shops. In the 1970s, Toyota began developing a high-precision system based on a warehouse management program (Ivanov, 2017). On the one hand, company representatives in the purchasing department held standing orders for their long-term suppliers upfront. In the order, just as at the end of the 20th century, the name, type, size of the part, its characteristics, and the exact time of delivery to a particular assembly point were specified. Since the orders were placed over a fairly long period, Toyota could easily impose a highly demanding system of rating suppliers and even fining them for unreasonable delays in delivering products. Finally, the plan was seriously strengthened when it began to be managed not only by the purchasing managers but also directly by the consumers of the parts, who work in production regularly. Due to the continued relevance of the program, Toyota was one of the last automakers to stop production temporarily due to timing issues in the supply chain.
Secondly, in terms of flexibility in logistics, 3M is a leading corporation that has absolute dominance in supplying products and product components through not only the entire United States but also the entire world. In fact, 2021 clearly showed the importance of a dispersed manufacturing infrastructure, where multiple production units can deliver the same quality products anywhere in the world (Befidi, 2021). The main product during the pandemic for 3M was the pharmacological product lines, in particular the highest level of protection medical masks. Some scientists attribute the success of 3M precisely to the concentration of the company’s warehouses and production plants, which have similar or identical characteristics. Based on this, one could argue that flexibility in logistics is a significant factor in a specific domain, such as pharmacological production or stationary, where it is critical to maintaining the same quality within different quantity scales.
The third factor of flexibility, location, might be represented by the aircraft company named Airbus. The French company Airbus is the world leader in aircraft production for commercial use. In fact, the corporation operates on the market, as the only important competitor is the American company, Boeing. By building an incredibly efficient aerospace cluster, the company benefits from the close proximity of its production facilities, which allow it to assemble products in a single region in the south of France (Mazaud, 2020). Located in Toulouse, Airbus’ infrastructure allows the company to get the components it needs in as little as two days. Even the largest parts, such as engines or fuselages, can be transported to their destination using city and municipal roads, making the company very mobile and relatively independent of the global supply chain.
Last but not least, Ford motors represent the fourth factor of flexibility that is critical in today’s realities: supply chain. In fact, the second word ‘chain’ is the most significant in these terms since it describes the company’s flexibility throughout the whole process of good manufacturing. Long known for building a chain of vertical integration thanks to the company’s founder Henry Ford, the corporation has effectively adapted the basic concept of specialization in the production of all components to today’s realities, which allows Ford Motors to become a leader in the market of electric vehicles production, which is characterized by serious demand in the field of basic materials for construction and strong dependence on a large number of high-tech product suppliers. Prior to the 2008 financial crisis, the U.S. auto manufacturing industry was entirely concentrated in the city of Detroit. Most of the necessary components were produced in the U.S. by subsidiaries of Ford Motors and delivered by the cheapest transportation for the area.
However, after the partial bankruptcy of the company, Ford Motors had to adapt a new supply management model to ensure the company’s competitiveness. Recently, the company decided to take the lead in the electric vehicles (EV) market, where a serious technological and material infrastructure was needed (Ivanov, 2017). Ford Motors can provide both in the medium term, as the company is not only entering into long-term contracts to supply basic materials but is also starting to create critical high-tech products itself, such as microchips and 11 nm semiconductors. In this regard, it can be argued that Ford is one of the promising leaders in the flexibility of the supply chain due to the significant independence in critical parts of EV manufacturing and a massive technological and capital infrastructure.
Conclusion
In conclusion, the flexibility factors considered are critical for companies in 2022, as they are the main cause of production stoppages or disruptions. The companies analyzed in this article are effective examples of their leadership. With an established infrastructure in a certain category, corporations can get the desired results while spending less time. In particular, the 2020-2021 pandemic helped three out of four companies to increase their competitive advantage and demonstrated the efficiency of their supply chain infrastructure.
References
Befidi, R. (2021). Distributed Manufacturing Can Stabilize Biopharma Production.Genetic Engineering & Biotechnology News, 41(5), 23–24. Web.
Ivanov, D. (2017). New Drivers for Supply Chain Structural Dynamics and Resilience: Sustainability, Industry 4.0, Self-Adaptation.Structural Dynamics and Resilience in Supply Chain Risk Management, 293–313. Web.
Mazaud, F. (2020). Purchasing strategy and supply chain management, the Airbus productive system case. RAIRO – Operations Research, 54(4), 933–948. Web.