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Honda Motor Company International Supply Chain Paper

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HONDA – GLOBAL PROCUREMENT STRATEGIES AND GLOBAL

NETWORK MANAGEMENT

Table of Contents

1. Introduction..............................................................................................................2

2. Change in Procurement …........................................................................................2

3. International Supplier Selection................................................................................3

4. Supplier Management and Development……………………………………..........4

5. Tools for International Sourcing...............................................................................6

6. Buying from Global Suppliers..................................................................................7

7. Global Network Management...................................................................................7

7.1 Technology and Knowledge Transfer.......................................................................7

7.2 Absorptive Capacity..................................................................................................8

8. Possible Problems in Implementation and Conclusion..............................................8

9. References..................................................................................................................9

Table of Figures

1. Figure 1.0....................................4

2. Figure 2.0....................................5

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Report

1. Introduction

This report aims at understanding of Honda Motor Company’s international supply chain and

analysis of the enactment of provided recommendations. It is suggested that the procurement

of parts via local market is cost effective and Honda Motor Company should focus on the

attaining of parts from BRICS nations in order to make space in the emerging markets

(Kwon, 2012). As procurement strategies are constantly changing; the report

comprehensively discusses that how Honda Motor Company can expand its prospects in the

light of given recommendations and how sharing of knowledge can be instigated and used as

a strategy of implementation of given recommendations.

2. Change in procurement

In the context of timely supply of flawless services in the form of products; it is inevitably

necessary to maintain optimized supply chains to all markets. Moreover, while doing so, it is

also very important to take care of environmental and other issues related to human rights

and well-being. To be specific, the availability of raw material, prepared components as per

company’s requirement and provision of other related items in order to carryout sustainable

production at the part of company is broadly called procurement. The procurement strategies

are evolving around two main pillars known as in-house production and outsourcing. As

regards outsourcing; third parties and newly emerged suppliers are greatly involved in the

process. Companies, round the globe, are making much effort to penetrate into developing

markets through outsourcing (Nassimbeni, 2017). Recommendations are to produce the parts

locally; Honda Motor Company is already working on the strategy of manufacturing products

as near as possible to the customer. This approach calls for the out sourcing of building

components at a large scale (Sartor, 2017). The company is currently working worldwide and

particularly in six regions. All purchasing functions are being supervised by central office

located in Japan. The aim is to touch new markets particularly BRICS nations where people

tend to purchase low budget products with good efficiency. Here, the provision of fairly good

quality product at comparatively low price becomes a challenge. Globally, all competitors in

the market are constantly busy in imploring local suppliers with novel strategies and by

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1|Page HONDA – GLOBAL PROCUREMENT STRATEGIES AND GLOBAL NETWORK MANAGEMENT Table of Contents 1. Introduction..............................................................................................................2 2. Change in Procurement …........................................................................................2 3. International Supplier Selection................................................................................3 4. Supplier Management and Development……………………………………..........4 5. Tools for International Sourcing...............................................................................6 6. Buying from Global Suppliers..................................................................................7 7. Global Network Management...................................................................................7 7.1 Technology and Knowledge Transfer.......................................................................7 7.2 Absorptive Capacity..................................................................................................8 8. Possible Problems in Implementation and Conclusion..............................................8 9. References..................................................................................................................9 Table of Figures 1. Figure 1.0....................................4 2. Figure 2.0....................................5 2|Page Report 1. Intr ...
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Tags: Honda Motor Company International Supply Chain global network supply of flawless services Manufacturing products