Strategic Supply Chain Management Essay Example | Topics and Well Written Essays - 2500 words

Strategic Supply Chain Management - Essay Example at even though MCC was formed as a result of supplier integration and partnership cost sharing, but MCC was by far the stakeholder with the maximum investment. MCC had paid more than 50% of the total pre-launch, and infrastructural, product designing investment. The remaining 50% was shared amongst seven integrated suppliers and 16 non-integrated suppliers. Since the primary stakeholder is MCC, it is sensible for them to manufacture the car since the performance of the car in the market, its success or failure, will directly have an impact on them. The customer re consumers who are purchasing the product with the label Daimler-Benz, whereas the customers of the suppliers is the newly formed company MCC. The Brand Name: As discussed above, the MCC car carried the Daimler-Benz name. The brand name is actually a promise to the customer of quality and reliability. Due to this, if there are any technical flaws in the finished product, Daimler-Benz would suffer. The impact would not only be felt on the sales of Smart Car but it would have a sill-over effect and would adversely impact the current high-selling models of Daimler and Benz. For his purpose, even though supplier integration is a crucial part of MCC policies, however, even then MCC has to be in control of the manufacturing process. Influence and Control: Supplier integration is a â€Å"pull† mechanism whereby due to the influence of Daimler-Benz, which has its roots in the volume of business provided to their suppliers and partners by them, the suppliers and partners have willingly decided to invest and be a part of MCC. In the absence of the Daimler-Benz entity, it would be difficult to bring the different players of the automobile sector performing various functions under one roof. Likewise, this influence is needed to keep a control over the supply chain activities and to monitor supplier-supplier relationships. Without this influence and control, there would be greater conflicts and it would be difficult