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1 2018

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Application of value stream management to enhance product and information flows in supply chain networks – based on the example of web-based automotive retail business

Plapper P., Oberhausen C., Minoufekr M.

Management and Production Engineering Review

2018

Vol. 9, No. 2

13--19

Due to globalized business operations, companies in different economic sectors are part of complex supply chain networks. Their value-added processes comprise product and information flows, e.g. with a focus on manufacturing, service or trade. Until the final product is delivered to the end customer, it needs to pass many different processes in cooperating organizations. As a result, there a lot of business-to-business (B2B) interactions with crossenterprise transactions, often including cross-border communications and sometimes even cross-industry trades with technological and often cultural implications. Especially the interfaces of supply chain networks are prone to inefficiencies, misunderstandings and delays due to a lack of standardized B2B transactions, which leads to waste in form of rework, errors and mistakes. In addition, new customers are hard to find for the manufacturing or trading company, since potential customers are so far limited to a regional network. The advantages of extending the customer base still need to be explored by many organizations. This paper discusses the opportunities by streamlining the communication along supply chain networks in a general fashion and then describes the application in a B2B automotive retail business. A concept of a web-based trading platform, which provides a seamless service for all steps of a convenient and efficient used vehicle remarketing business, is developed. It includes all phases, like offering and price finding in a comprehensive online platform, which also covers further activities, such as logistic services, financial transactions, and a mandatory feedback loop. The suggested B2B vehicle-trading platform enables a quick turnover of each transaction, which is analyzed and optimized based on the application of cross-enterprise Value Stream Management.