material and logistics management course In This Document we are to talk about how the German supply chain works and what do they do that makes it the leader in Supply chains around the world and also we will be talking about 2 industries and they apply their supply chain

1. GERMANY
SUPPLY CHAIN
Fish & Automotive Industries
ABSTRACT
In ThisDocumentwe are totalk abouthowthe
Germansupplychainworksand whatdo theydo that
makesitthe leaderinSupplychainsaroundthe world
and alsowe will be talkingabout2 industriesandthey
applytheirsupplychain
Omar Sherif |15204143
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Logistics& Materials

2. Germany Supply Chain
Germany supply chain is seen as the leader for SSC Sustainable supply chain as Managers sees this as a catalyst
for corporate transformation and customers that are drivers for SCs to more suitable business practices. And
industries around the world are the one of the main sources of greenhouses gas emissions and multinational
enterprises have the power to promote long term and collaborative solutions to reducing emissions from the
entire SC, Germany invests in eco efficient technologies and renewable energies and measures to reduces
emission, they also have regulations like EU RED (EU renewable energy directive) which aims to increase
share of renewable energy by 20% to 2020
What makes SSC good is that also Germans gain profit from extending the product life cycle to develop
Sustainable manufacturing solutions , they use these relationships to avoid emissions and costs through
reduction packages volume and uses of less and recycled source of fiber materials and opting for packaging that
can used for both transport and in-store presentation
Germans Identify Value of building certified sites ex. ISO 14001, leadership in energy and environmental
designs like specific manual with mandatory environmental measure for architects when building there stores or
facilities, also the development of automation systems and modern technologies support improvements in
resources efficiency, to even reduce emission even more they sometimes go for suppliers “wall to wall” with
production sites
Another clear Characteristic of these companies is the sharing culture, between business units and also with
other companies , The use of pooling systems with firms with similar product categories is vastly reported
among the German firms. They highlight the advantages of increasing the percentage of fully loaded trucks,
reducing the number of empty runs and consequently emissions
In Germany, EU requirements are among the strongest drivers for improving SC sustainability as well as the
increase in market competitiveness.
The framework displayed on figure was built and aims to support the comparison of countries SSC practices for
further identification of value creation opportunities through collaboration projects

3. Germany – the gateway to emerging markets

4. Outsourcing has proceeded furthest in automotive chain
Processes are distributed more widely through the automotive chain. Early vendor involvement’,
whereby producers consult suppliers in their planning at an early stage, is well established in the
automotive chain. A steel company like Tata Steel, for example, will be involved in designing the body of
a new model of car. , The trend towards outsourcing is opening doors for suppliers, both of components
and slowly but surely also of modules and systems. However, the changes occurring in the chain are also
creating new competition from Germany itself. German companies that formerly produced components
want to ascend the added-value ladder and evolve into module builders or systemsuppliers
The Fish Industry [Planning / Sorucing]
Suppliers of seafood products to the retail trade are mainly small, individual or exporting companies.
They face the same challenges as other food manufacturers confronted by a food retailing sector increasingly
dominated by giant retailers operating in several countries and with strict quality, timing and labeling
requirements. However, unlike other agri-food industries, the fish sector has the added complication of supply
variation and product perishability (Hanssen 1996, p. 27).
Larger suppliers are better equipped to import fish and benefit from less volatile international markets.
Therefore, some supermarkets have bypassed distributors completely, sourcing their fish directly from
processors. The effect of these changes is a coordinated supply chain with fewer but more highly integrated
agents.
Collaboration is characterized by information, knowledge, risk and profit sharing (Mentzer et al. 2000, p. 53).
One of the main issues that require collaboration among participants of fish supply chain is sustainability. The
sustainable seafood movement is taking place in only a few of the world’s major seafood markets, mainly the
EU and USA (Roheim 2009). Generally, these movements are initiated and run by environmental non-
governmental organizations (NGOs) like Greenpeace, or at least private nonprofit organizations.
These initiatives aim to tap into growing consumer demand for environmentally preferable products, channeling
purchasing power towards seafood products from sustainably managed fisheries and aquaculture activities. This
caused the German fish processors to sign a negotiated agreement “Initiative to promote sustainable fisheries”

5. already in 1996 with the aim to include sustainable supply in their purchasing agreement and to specify origin.
However this initiative was not widely shared by retailers.
Only since Greenpeace in Germany has first published its supermarket-ranking for fish products in 2007, many
retailers have decided to reconsider how they purchase fish and fish products and have begun to institute
ecological measures. The results of Greenpeace’s ranking in 2008 showed that 8 out of 11 retailers started to
implement better purchasing policy (Greenpeace). Norma, Kaufland, Aldi süd, Rewe and Lidl were under the
retailers with the most positive development in improving their responsibility.
They use Supply chain networks management []
Structuring of exchange relationships with the supply chain partners requires that the supply chain network’s
management, i.e., primarily the focal company, properly deals with the problems of two domains – cooperation
and coordination (Gulati et al. 2005, Hanf and Dautzenberg 2006, Xu and Beamon 2006). Because problems of
cooperation arise due to the conflicts of interests, the cooperation task is to align the interests of the
participating actors or, in other words, motivate them to work together (Gulati et al. 2005). The accomplishment
of this task is typically addressed by the implementation of partnering strategies that generally aim to design the
relationships within the supply chain (Mentzer et al. 2000). More specifically, partnering strategies involve the
use of formal and informal mechanisms of cooperation. Formal mechanisms include contracting, common
ownership of assets, monitoring, sanctions, rewards and the prospect of future interactions (Williamson 1985,
Gulati et al. 2005
Automotive
German automotive industry
The Strategic goals, currently pursued in the German automotive industry, are to shorten customer order
delivery times of customized cars, to keep promised delivery dates with a high reliability and to allow
customers to change their car options also in the very short term. In order to reach these goals in addition to
supply chain collaboration, two major bundles of measures, online ordering and late order assignment, have
been and are still being implemented.
[Order Management]
Online ordering:
The total order-to-delivery lead time (OTD) can be shortened by reducing the lead times of all individual
processes (like order entry and processing, manufacturing, distribution) involved. Since manufacturing and
distribution only comprise a very small percentage of the OTD (about 16 % ), the highest potential can be found
in order entry and processing
Late order assignment
Traditionally each body-in-white, physically processed within the body shop, is already assigned to a customer
order (“order assignment”) and a re-assignment to Supply chain planning in the German automotive industry
461 another order is only rarely practicable. Following the pull-principles of the just-intime philosophy the final
assembly as the last production stage has to be planned first and synchronizes all direct suppliers and upstream
production stages, especially the paint shop and the body shop. In the light of “lean thinking” the work-in-
process buffers (body store and painted body store) should be small and thus body and paint shop ideally
produce in the same sequence of customer orders as is planned for the final assembly. However, these buffers
are still necessary because process failures in the body and paint shops occur frequently. For this reason, a
planned assembly sequence can only be considered to be reliable, when the respective orders’ painted bodies
have left the paint shop.

6. SCOR Model
Sourcing
Most sourcing practices in for example automotive industry are not limited to single or multi as they usually
require specific parts for a particular product from more than one supplier , they also use modular sourcing it
means that they purchase prefabricated complex devices or complete systems
And when dealing with sourcing commonly applied practices, which need to be mentioned when dealing with
Sourcing practices in the automotive industry are the concepts of ship-to-line and ship-to-Stock. Both concepts
deal with the provision of materials Dickmann (2008), explains that the ship-to-line approach aims to provide
the goods directly to the point of consumption in the assembly line and thus eliminates the necessary internal
material flow processes or temporarily stored stocks.
the ship-to-stock concept follows, as the name suggests, an immediate delivery to the customer warehouse
(Dickmann, 2008). Terrance and Thomas (2003) introduce the concept of VMI in which the supplier assumes
responsibility for the manufacturer’s inventory replenishment on the inbound side to the manufacturing
operation. Therefore, the replenishment action is driven by the manufacturer’s production schedule.
Make
a lean production checklist according to the most common lean production principles found in the literature.
The first principle in this checklist is the elimination of zero value activities, This refers to the elimination of
everything that does not add value to the product or service the company is providing
Another crucial lean production principal in the checklist constitutes the Continuous Improvement Process
(CIP). The main objective of it is to search for continuous improvements in products and processes (Oakland,
1993). CIP requires not only the involvement of all employees who work in the production but also the support
of top management. Both are necessary to create improvement teams and to train employees (Angel Martinez &
Manuela Perez, 2001).
Another lean principle to mention here is working in multifunctional teams. Working in multifunctional teams
greatly facilitates task rotation and flexibility to accommodate changes in production levels (Angel Martinez
&Manuela Perez, 2001). Lastly, supplier integration must be listed here as it is a feature of lean production that
influences several departments like research & development and logistics. Dyer (1996) shows that automakers
derive high degree of competitiveness out of some specific buyer-supplier relationships with their first-tier
suppliers
Furthermore, Baumgarten (2004) states that the customer should be the final initiator and driving force for the
production of its purchase object and thus controls the entire process of added value. This principle is better
known as the pull-production. Womack and Jones(1997) also state, that no company should produce any
product or service upstream in supply chain before it is required by the customer downstream. Moreover,
according to Liao, Deng and Marsillac (2013) a main principle of lean production must be to create the final
variant as late as possible.

7. Deliver
Terrance and Thomas (2003) refer to the distributional side of the supply chain while introducing the concept of
VMI for the outbound side, in which the manufacturer takes over the final responsibility for the customer’s
inventory. Thus, the replenishment action is mainly driven by point-of-sale data and not by the production
schedule (Terrance &Thomas, 2003). In addition, the concepts of ship-to-line and ship-to-stock can be stated as
delivery practices. In this case both concepts deal with the provision of the finished goods towards the customer
and not only for the provision of production material which is the case on the source side.

8. References
https://www.researchgate.net/publication/272726662_Sustainable_supply_chain_management_in_German_auto
motive_industry_Experiences_and_success_factors
ageconsearch.umn.edu/bitstream/58017/2/Gagalyuk.pdf
https://pdfs.semanticscholar.org/0045/63b9244358f675530e0b1631fef7adb27317.pdf
https://www.mdpi.com/2071-1050/9/8/1435/pdf
https://www.diva-portal.org/smash/get/diva2:826486/FULLTEXT01.pdf
https://www.ing.nl/media/EBZ_the_german_technology_industry_tcm162-32885.pdf