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Abstract

The case discusses the operational restructuring initiatives undertaken by leading US-based motorcycle company Harley-Davidson, to improve productivity. It examines the company''s growth since its inception, the various challenges it faced, and the strategies it adopted to retain the market leader status. The case examines the reasons behind Harley- Davidson''s decision to restructure its supply chain management practices in the mid-1990s. The following strategies are focused upon: supplier relationship management, use of IT in supply management, overhauling the maintenance, repairs and operations (MRO) setup, and logistics and distribution management. It also describes the benefits reaped by Harley- Davidson on account of these initiatives. Finally, the case addresses the problems that continue to plague Harley-Davidson on the operational front in the early 21 century and comments upon its future prospects. From the case, students are expected to understand: (1) the dynamics of the US motorcycle industry and Harley-Davidson''s role in its evolution over the decades; (2) the implications of demand-supply balance for a company and the need for restructuring the supply chain management practices, as well as the overall operations setup; (3) the benefits of involving the suppliers and the purchasing division in the product designing phase for an automobile company; (4) the importance of cross-functionality among different divisions of a company; (5) the need for a company to maintain an effective and healthy relationship with its supplier base; (6) the role of cost control and efficient operations in increasing the productivity of a company; and (7) the role of supply relationship management, MRO purchasing, distribution and technology in reducing costs and improving the productivity. The case is intended for MBA/PGDBM level students as part of the production and operations management curriculum. The teaching note does not contain an analysis of the case.
Location:
Industry:
Size:
Large
Other setting(s):
Mid-1990s to 2003

About

Abstract

The case discusses the operational restructuring initiatives undertaken by leading US-based motorcycle company Harley-Davidson, to improve productivity. It examines the company''s growth since its inception, the various challenges it faced, and the strategies it adopted to retain the market leader status. The case examines the reasons behind Harley- Davidson''s decision to restructure its supply chain management practices in the mid-1990s. The following strategies are focused upon: supplier relationship management, use of IT in supply management, overhauling the maintenance, repairs and operations (MRO) setup, and logistics and distribution management. It also describes the benefits reaped by Harley- Davidson on account of these initiatives. Finally, the case addresses the problems that continue to plague Harley-Davidson on the operational front in the early 21 century and comments upon its future prospects. From the case, students are expected to understand: (1) the dynamics of the US motorcycle industry and Harley-Davidson''s role in its evolution over the decades; (2) the implications of demand-supply balance for a company and the need for restructuring the supply chain management practices, as well as the overall operations setup; (3) the benefits of involving the suppliers and the purchasing division in the product designing phase for an automobile company; (4) the importance of cross-functionality among different divisions of a company; (5) the need for a company to maintain an effective and healthy relationship with its supplier base; (6) the role of cost control and efficient operations in increasing the productivity of a company; and (7) the role of supply relationship management, MRO purchasing, distribution and technology in reducing costs and improving the productivity. The case is intended for MBA/PGDBM level students as part of the production and operations management curriculum. The teaching note does not contain an analysis of the case.

Settings

Location:
Industry:
Size:
Large
Other setting(s):
Mid-1990s to 2003

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