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Harley Davidson - PowerPoint

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									Harley Davidson
                  Background
• Founded in 1903
• Owned by AMF from 1969 – 1981
• The 1980’s
   – Buying Back Harley
   – The Tariff Period
• The Buell Motorcycle Co. acquisition
• Market position
                  Supply Base
• “…executives realize that this next phase of healthy
  growth can be achieved only with the full participation of
  a proactive enlightened supply base.” (Nelson)
• Transformation to partnership supply base
   – Beat the Japanese at their own game
   – Maybe auto industry should take notes?
                   Supply Base
•   70 suppliers make up over 80% of spend
•   MRO suppliers decreased from 3500 to 4
•   Co-location of suppliers in plant
•   No significant push to move overseas
     – Overall best value approach
     – Once International sales increase then begin to move
       further
                  Manufacturing
•   3-bin system as standard
•   40,000 to 5,000 sq. ft. inventory reduction at York plant
•   Purchasing in the mezzanines
•   Vertical integration of core components
•   Purchasing no longer reports to manufacturing
          Porter’s Five Forces
• Supplier’s Growing Bargaining Power (Medium)
   – Large Automotive Suppliers
   – Small privately held
   – Acquisitions
   – Vertical Integration
                   Leadership
• Jeffrey Bleustein – CEO
   – “We Ride With You”
       • Message to Customers
       • Work closely with Suppliers
   – Rider’s Edge Program
       • Extend Customer Base through rider training
   – Stepping down as CEO in April 2005
                    Leadership
• Leroy Zimdars
   – Director of Supply Chain Management
   – CAD technology similar to Suppliers
      • Share design ideas and development
   – Movement from Push to Pull Strategy
      • EDI and electronic trigger system to pull its
        materials
   – EAGE standard for bar coding
   – Website for suppliers
      • Production Schedules
                   Leadership
• Gerry Berryman
  – 1997 Vice President of Supply Chain Management
  – Experience from John Deere & Honda
  – Implemented a Supplier Advisory Council
      • Harley works with suppliers to test new products
        and technologies
      • Access to latest tools
      • Suppliers able to move products to market
                   Leadership
• Paul Barker
   – Director of Parts & Accessories at Harley Davidson
     Europe
   – Took over distribution centers in 4 of 9 European
     countries
      • Centrally managed warehouse in Belgium
      • Reduced lead-time from 28 to 3 days on parts
      • Next day deliveries
      • Reduce on-hand inventories
                  Leadership
• Paul Barker – cont’d
   – Pipeline Project
      • Push to Pull Strategy for selling motorcycles
      • Dealers only stock demo and showroom bikes
      • Eliminates dealer inventory
      • Motorcycles assembled and shipped from factories
      • Customers able to customize orders
      • 3 days to ship most motorcycles
      • Customers get their first choice every time
  Buell Acquisition & Integration
• 98% Ownership in Buell
   – Purchased 49% in 1993
   – Purchased additional 49% in 1998
• Reasons for purchasing Buell
   – Products
   – Price Points
   – Consumers
  Buell Acquisition & Integration
• The Buell Supply Chain
• Relationship with Harley Davidson
   – Before the Acquisition
   – After the Acquisition
• Continuous Improvement at Buell
           Engineering Systems
• CAD: ProEng

• Product Lifecycle Mgmt:
  UGS/Oracle

• 3-D Modeling: Spatial Eng

• Ride Simulation: LMS Tech
        Manufacturing Systems
• CAD: ProEng               • 3-D Modeling: Spatial Eng
• Product Lifecycle Mgmt:   • SPC: Powerway
  UGS/Oracle
    Marketing / Logistics Systems
•   Customer Website
•   ClickStream Data Mining: Blue Martini
•   Contact Center: Epiphany
•   Market Intelligence Mining: BIZ360
•   Forecasting, DRP, MRP, ERP
•   Data Warehouse: Oracle
•   OLAP Analysis: SPSS
Engineering System
Supply Chain Mgmt Data Flow
END

								
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