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Panasonic Car Audio Division: Efficient Supply Chain Management

Learn how Panasonic's Car Audio Division optimizes supply chain from manufacturing to customer delivery. Discover their key strategies and success factors in inventory management, supplier selection, and electronic data interchange.

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Panasonic Car Audio Division: Efficient Supply Chain Management

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  1. Panasonic Car Audio Division Brian Addington Valerie Ramsey Carrie Richardson Sara Scott Dave Speidel

  2. Company Background • Located in Peachtree City • Manufacture Car Stereo Equipment • Basic Products: CD tuner, Cassette tuner, CD/Cassette combo, Radio tuner, 6 disc changer

  3. Supplies to Panasonic • 60 main suppliers • 60% of supplies come from overseas • Originally used boat, lead time was 12 weeks (6-8 for manufacturing, 4 for shipping)

  4. Supplies to Panasonic • Switched to air • low weight to cost ratio of electronic components • bulk shipping rates (Yamato and Fed Ex) • inventory reduction • increased customer response due to constant shipments

  5. Supply Chain

  6. Panasonic to Customer • Customer dictated • Customers send in weekly orders • 1-2 weeks notice for large changes in demand • Never miss an order!

  7. Panasonic to Customer

  8. Picking Suppliers • Mainly small, independent companies • Moving away from Japan and U.S. • No preferred countries, only preferred suppliers. • Characteristics of choosing suppliers • Quality • Dependability of delivery • Engineering capabilities and support • Reputation • Financial stability • Price

  9. Forecasting • Determine market flavor and trends • Example: SUV popularity • Past history • Forecast six months out, but only two months out is firm

  10. Inventory • Service level of 100% • Prefer to stock raw materials rather than finished goods. • Keep 7 days of finished goods in stock • Adding 70,000 square feet of warehouse space to the Peachtree City Plant

  11. Electronic Data Interchange (EDI) • Computer to computer exchange of knowledge • Allows immediate knowledge to adapt to order changes • Allows communication with certain suppliers • Eliminates confusing paperwork • Requires costly support which may be eliminated through the use of a web based system

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