Ducati’s Value Chain Analysis

Ducatis Value Chain Analysis Primary Activities incoming Logistics: The course of study Production approach reduced the forecast for handling and storing of raw(prenominal) material. The inbound logistics at Ducati were raw material unavoidable for niggard cases, cylinder heads and subassemblies coming from its score 1 supplier. This lessen the need for keeping large raw material warehouses. The front man of Ducatis suppliers near its Bolonga plant also helped Ducati and its suppliers to maintain few inventories and be quick to production response. Operations: Ducati in 2000 was avocation a Platform Production approach which made manageable to accession production outsourcing to 87%. A grad 1 supplier was liable for manufacturing and assembling sub-assemblies whereas the tier 2 suppliers were responsible for producing components by purchasing raw material from tier 3 suppliers. The tier 1 supplier was also responsible for managing tier 2 & 3 suppliers. Therefore , Ducati was only producing final assemblies and few locomotive engine components (crank cases & cylinder heads) at their plant. This setup helped Ducati to reduce its fixed comprise of ontogeny production facilities and hiring of skilled labor. Managing only tier 1 supplier also reduced its transaction cost, order affect costs and inventory management costs.

Outbound Logistics: Ducati established whole own sales and marketing subsidiaries in Japan, France, Germany, UK, Holland and USA. Since Ducati was positioned in the subvention ride bike market unlike Honda, Yamaha and Suzuki, which also produced bikes for non-spor ts segment, hence it did non aim to increa! se geographical reach and developed rise quality exclusive dealers. The company also had a diverge of Ducati Stores that presented a unique Ducati Sports Biker Lifestyle. Ducati Stores provided superior technical support, performance accessories, go gears and apparel in addition to new bikes. The production and logistics of stark parts was outsourced to two companies...If you want to get a cost increase essay, order it on our website: OrderCustomPaper.com

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