Research On Federal Mogul Company's Supply Chain Management Strategy

With hard competition in manufacturing industry, enterprises are trying to dig out potentials from their operations to gain advantages in competition. Strict control on the manufacturing cost becomes an important content in the competition strategy for nowadays manufacturing enterprises. To utmost minimize manufacture cost, multinational companies are focusing more on Supply Chain (SC) innovation and Supply Chain Management (SCM) becomes an important part in their competition strategy. There are two important contents for nowadays supply chain innovation: to reconstruct and redesign existing SC to reduce logistic cost to meet the new requirement for daily operation and help companies realize the target of cost and market strategy; to outsource logistics to reduce logistic cost and enable more sources can be used on enterprise's core business and to realize its strategic targets. From these points, it is very meaningful in reality to conduct research on the company's SCM strategy.Federal Mogul Frictions Company Limited locates in Wuhan and is solely founded by Federal Mogul Corporation. But in reality, many procedures in its supply chain operation are irrational, both the Company's daily operation and acquiring of its strategic targets are seriously affected, it is urgent to implement quick improvement on this. This paper starts by analyzing the current status of the Company's SCM to redesign and find solutions. By doing this, all solutions come out by referring to modern theories on SCM, such as theories on JIT and VMI Hub, ensure the advanced theories can combine with the company's current status and reality and enable solutions comes out feasible and practical. By these measures, the reliability of purchase SC will be improved, followed by sales supply chain reconstruction, SCM of the Company will be thoroughly improved.