Renault Coursework Example

ARTICLE
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Institutional affiliation
Renault
Renault is a manufacturing company operating and specializing in the production of motor vehicles. The company was established in 1899 to produce a range of vehicles including vans, lorries, personal vehicles, and coaches. The company deals with productions of goods that have a high level of competition. This has necessitated the incorporation of a functional supply chain management in the organization. This being the case, the company incorporated a synchronous supply chain to gain the competitive advantage over their rivals. Their efforts to form a synchronous supply chain began in 1996 where the company established branches in Curitiba and Brazil to expand their activities.
Supply chain management involves the integration of all the activities of the organization in order to make the logistics of an organization to flow smoothly for competitive advantage. The activity allows the organization to manage the flow of goods by storing both finished and work in progress inventory and providing them whenever required. As such, supply chain management allows the smooth flow of goods and services from the company where they are produced, to the consumers in the market.
The success of Renault in creating a synchronous supply chain
The company’s culture is one that recognizes that the customers are the heart of the organization. As such, they have adopted a way of ensuring that the needs of the customers are met and at the same time the company benefits from the relationship (Pierre-Marie, 2015).

To attain this goal, the company has geared the production strategy to one which incorporates the lean principle adding flexibility to the whole process. The company produces the vehicles, according to a specified plan in the form of a schedule drawn according to the specifications of the consumers.
In 2013, the company entered into an agreement with the Nissan Company in forming a joint partnership which aimed at reducing the cost of purchasing their raw materials. The alliance has proved to create a synergy which reduces the cost of production and increase the revenue by a substantial margin (Pierre-Marie, 2015). The synergy created by the alliance of the two Companies has enabled Renault Incorporation to meet their objectives and deliver high-quality vehicles to their customers with the convenience of time and cost. The alliance generated over eight hundred and twenty-four million pounds in savings for both companies (Pierre-Marie, 2015). In 2015, the company entered into another contract with Nissan Motor Company and AVTOVAZ where they merged their purchasing operations in Russia.
Renault has divided their supply operations to range from, sourcing of raw materials from the suppliers, to the delivery of finished products to the final consumers. The company has employed a large number of employees across their branches around the world to work in the Renault supply chain (Pierre-Marie, 2015). The total number of employees who perform the duties is six thousand, eight hundred and ninety deployed in over nine operational logistic departments. The departments are well structured and located in different geographical locations to enhance coordination and performance of the supply chain.
The synchronous supply chain has enabled the company to keep lower inventories in their warehouses due to the fast flow of both raw materials, work in progress and finished goods. Secondly, the company’s lead time has reduced favoring the organization. It therefore, means that the rate of interruption is reduced boosting the confidence of the customers and beating the competition. Finally, the synchronous supply chain has provided Renault with a framework of taking care of the routine and urgent demand of the customers.

References
Pierre-Marie, G. (2015). Global Synchronous Manufacturing and Logistics Organization: A Success Story, Supply Chain Forum.