Comments on: Lessons of the Tata Nano and Rethinking Big Three Supply Chains http://www.theferrarigroup.com/supply-chain-matters/2009/03/24/lessons-of-the-tata-nano-and-rethinking-big-three-supply-chains/ Bob Ferrari's Blog on Supply Chain Business Process and Technology Thu, 03 May 2012 15:15:50 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Himraj Dutta http://www.theferrarigroup.com/supply-chain-matters/2009/03/24/lessons-of-the-tata-nano-and-rethinking-big-three-supply-chains/comment-page-1/#comment-4274 Himraj Dutta Thu, 15 Oct 2009 11:46:56 +0000 http://www.theferrarigroup.com/supply-chain-matters/?p=534#comment-4274 One more attribute is the faster decision making by the Tata management which enabled them to roll out the car on due date. When the team realized that the plant in Singhur will not be operational due to problems created by Local politicians, they relocated the operations and that of their vendors to a different location. So other than price they had also done a backward integration in terms of Time and had also implemented a quicker decision making philosophy. The Big three can also learn this from Tata Motors - Quicker Decisions in difficult times. One more attribute is the faster decision making by the Tata management which enabled them to roll out the car on due date. When the team realized that the plant in Singhur will not be operational due to problems created by Local politicians, they relocated the operations and that of their vendors to a different location. So other than price they had also done a backward integration in terms of Time and had also implemented a quicker decision making philosophy. The Big three can also learn this from Tata Motors – Quicker Decisions in difficult times.

]]> By: Bob Ferrari http://www.theferrarigroup.com/supply-chain-matters/2009/03/24/lessons-of-the-tata-nano-and-rethinking-big-three-supply-chains/comment-page-1/#comment-1318 Bob Ferrari Wed, 25 Mar 2009 20:57:58 +0000 http://www.theferrarigroup.com/supply-chain-matters/?p=534#comment-1318 Paul- you provided some astute observations regarding a changed consumer and a changed distribution model. I would also value the web research and comparison experience, a no-pressure test drive, and the ability to custom order my car with my customized options. These options could well be installed a a local or regional assembly center, similar to Toyota's import models years ago. As Paul points out, the "hooks" are changing. Bob Ferrari Paul- you provided some astute observations regarding a changed consumer and a changed distribution model.

I would also value the web research and comparison experience, a no-pressure test drive, and the ability to custom order my car with my customized options. These options could well be installed a a local or regional assembly center, similar to Toyota’s import models years ago.

As Paul points out, the “hooks” are changing.

Bob Ferrari

]]> By: Paul McDaniel http://www.theferrarigroup.com/supply-chain-matters/2009/03/24/lessons-of-the-tata-nano-and-rethinking-big-three-supply-chains/comment-page-1/#comment-1317 Paul McDaniel Wed, 25 Mar 2009 20:24:33 +0000 http://www.theferrarigroup.com/supply-chain-matters/?p=534#comment-1317 Outdated customer hook (thus distribution model): if we get them into the showroom AND into "their" vehicle, we can sell it to them even if they were just looking. New hook, give me a great website and allow me to order the car I want. Sure I need a test drive of a similar car, but then I can wait 2-3 weeks for "my" car the way I want it. And, fewer customers end up with a bad taste in their mouth if they got sold into a decision instead of made the decision. The whole supply chain gets efficient if build to order gets closer to reality. Maybe I get a cheaper car because no one is financing a long cash-to-cash cycle! Outdated customer hook (thus distribution model): if we get them into the showroom AND into “their” vehicle, we can sell it to them even if they were just looking. New hook, give me a great website and allow me to order the car I want. Sure I need a test drive of a similar car, but then I can wait 2-3 weeks for “my” car the way I want it. And, fewer customers end up with a bad taste in their mouth if they got sold into a decision instead of made the decision. The whole supply chain gets efficient if build to order gets closer to reality. Maybe I get a cheaper car because no one is financing a long cash-to-cash cycle!

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