Businesses network design is about where to find your supply sources and making and distribution operations, along with the deployment of such operations, i.e., who should be supplying whom. With the emergence of worldwide supply and manufacturing sources and the global market, such a design will increasingly have to span multiple areas. In the design, we need to capture the quantitative impacts of such variables like fixed and variable costs of stock, production or supply facilities, cargo, and other logistics prices.
The worldwide network requires explicit treatment of customs, taxes and duties. This case is about Renault's recent automobile Logan, which was designed to serve markets in emerging markets like the Middle East, North Africa and Eastern Europe. The firm has designed its supply chain to take advantage of the particular customs and duties treaties in these areas. The case illustrates the complexities of such design choices, and the approaches one needs to take. The case also ends with a key decision that Renault has to make - the best way to set up the supply chain for the new market in South Africa. Again, duties implications and the customs play a huge part in this type of selection.
PUBLICATION DATE: April 29, 2008 PRODUCT #: GS62-HCB-ENG
This is just an excerpt. This case is about GLOBAL BUSINESS
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