If we look at MCC’s basic plant layout there are four suppliers integrated with each other in terms of production and design network. The purpose of having such a supplier network is to have quick access to supplies for production and the sub sections are existent to avoid any malfunctioning in assembly process. Moreover, MCC uses artificial intelligence to ensure the complete and sophisticated assembling process by hiring 130 robots for its production line.
For customization MCC uses unconventional channels. The reason for keeping the customization and production locality separate is to maintain the single-staged sales concept. This creates an enhanced distribution system to the tiered sales structure in the traditional automotive industry. There are various reasons to have a separate system for customization which has a sole objective to create close customer contact. These reasons primarily include: making sales channels to establish a dialogue with customers, lead-time based production flexibility and direct distribution.
MCC wants to receive customers’ response to have a closer look on its supply chain networks which includes: Design and technology, high levels of customer choice and new distribution channels. This gives MCC a strategic fit which enhances product development, marketing and sales, operations, distribution and service (Meindl, Chopra 39).
Secondly, the dealership is located in highly urbanized areas to acquire customers who are fashion conscious and young. These dealers are located in the outskirts of the city to have a quick access to the customers looking for customization. If this dealership was not created and rather the customization facility is established on site, the customers would’ve hardly known its existence. This is how MCC define its target market by using the product development and market penetration concept. It also uses forward integration to gain an increased control over the customers with different choices and tastes (Education for System). This is what MCC calls a single-staged sales concept where integration only is not the key feature of its supply chain network design but the logistics and distribution are also the major drivers behind its success.
These are just excerpts of essays please access the order form for custom essays, research papers, term papers, thesis, dissertations, book reports and case studies.