Mercedes-Benz Logistics and Supply Chain Management (Essay Sample)

Mercedes-Benz Logistics and Supply Chain Management
By [Name]
Course
Professor’s Name
Institution
Location of Institution
Date
Introduction
The core business functions of Mercedes-Benz Cooperation are procurement or assembling subassemblies, parts, and raw materials needed in the production of the automobiles, real manufacturing, and distribution of the final products. Most importantly, for the Cooperation to achieve a competitive advantage, it must integrate the core business operations to achieve an effective and efficient supply chain management. The primary objective of any business is to maximize customer satisfaction while minimizing the cost. For Mercedes-Benz to gain a competitive edge over the other manufacturers, it must integrate all the logistics functions with the strategic objectives to a competitive supply chain management. Logistics involves planning, organizing, and controlling (management) the flow of goods from the point of origin to the end of consumption to meet the customers' requirements. In this regard, logistics management will enable Mercedes-Benz to coordinate its business operations such as transportation of parts to the assembling yards, and distribution of the final products to customers.
Most importantly, forward and reverse logistics are essential for the effective supply chain management. On the other hand, supply chain management is the management of the flow of goods or services that involves the transportation and storage of semi-finished materials, work-in-progress, and inventory from the point of origin to the point of consumption to meet the customers' requirement (Lee & Carter, 2011 pg 234). Therefore, for Mercedes-Benz Cooperation to achieve the benefits of the supply chain it must establish production and distribution networks at strategic locations across the globe; choose competitive suppliers who will supply parts on a timely basis. Also, developing the best-suited inventory management techniques, uphold the Total Quality Management across the entire supply chain, invest in research and development for innovativeness, and practice customized products.
Mercedes-Benz is known for its luxurious nature. It produces a wide range of luxurious coaches, trucks, buses, and cars in its manufacturing facilities. Amongst the four P's in the Mercedes-Benz marketing mix, the product is the strongest. For more than fifty years, Mercedes remains to be the leading brand when it comes to different world markets. When it comes to promotion, Mercedes is currently focusing on bringing up a more approachable, more energetic side of Mercedes Benz (Vanichchinchai & Igel, 2011 pg 234). To increase communicating with the target market, Mercedes has made an effort on several standards. Social media, online advertising, the offering of warrants under excellent conditions, print media, advertising on television, an establishment of a very good point of sales customer service, among others. Mercedes has managed to build a strong reputation on its products, making it one of the global most established brands. Mercedes-Benz has had many innovations in the past. It has used a worldwide network of dealers to distribute its products. It is a brand that understands consumers need that they don't just need a car to move from one point to another. Their concentration has been to make a car that will easily be absorbed into the market and also one that will be of more appeal to the younger people. On pricing, the company seems to deal with a group of customers whose concern is on the value they are getting from the product. The company, therefore, makes high-quality cars that have different prices according to models. Mercedes-Benz's competitive advantage is its product. The paper looks at Operations, Logistics, and Supply Chain Management of Mercedes.
Product development and Quality management
The process of new product development at Mercedes starts with the approval of the proposal. After the idea is approved, a new generation of Mercedes is developed to fit the consumer demands. In most cases, Mercedes improves its previous versions by changing the design; it is, therefore, important to note that its new product development revolves around design. New design development is an integral part of new product development. Through research, new vehicles with the new design are made through several processes (Goicoechea & Fenollera 2012, pg 567). The new design starts by drawing a new model or improvement. Mercedes draws its products in computers; they are developed from sketches. After designs are built, the dimensions are determined. To understand the new model, a virtual is created to get details on what should be ordered. The cost of the design is also established. Virtual models are created on large screens; finer details such as colour and the changes from the previous models are established. Mercedes knows that it is not possible to represent everything on the computer; they create clay models to represent what cannot be viewed on a screen. After clays are developed, finer details are handcrafted to look like the real models (Goicoechea & Fenollera 2012, pg 437). After several models have been made, the best is chosen; in choosing the model issues of cost, the changes from the previous models are considered. After the exterior models are made, the interior sketches are made; the interior should be an improvement from the previous models.
When designing and developing a new product, it starts with an idea; the idea can be a substitute or modification from the previous models. In other cases, new products at Mercedes are developed after the elimination of previous