TABLE OF CONTENT

Read the article about supply chain uncertainty framework, and select the
sustainable framework for your product company. Explain it................................ 1
I. Introduction to Nissan EVs....................................................................................1
II. Framework............................................................................................................1
1. Demand sensing and forecasting:.................................................................... 1
2. Quick Response Capabilities........................................................................... 2
2.1. Nissan lead times.....................................................................................2
2.2. Rapid Order Processing...........................................................................3
2.3. Efficient Distribution...............................................................................3
3. Collaborative Relationships.............................................................................3
4. Lean Manufacturing.........................................................................................5
5. Inventory Optimization....................................................................................6
6. Scalable and Flexible Infrastructure................................................................ 6
7. Technology integration.................................................................................... 7
REFERENCES..........................................................................................................9

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Read the article about supply chain uncertainty framework, and select the
sustainable framework for your product company. Explain it.

I. Introduction to Nissan EVs

Nissan is a leading manufacturer of electric vehicles, driving a shift to sustainable

mobility. First mass-produced EV car, Nissan LEAF, has paved the way for Nissan
EVs to break into this competitive market. This innovative EV model, packed with
latest connectivity technology, promised to solidify the position of Nissan in the EV
automobile industry.

II. Framework

Having read the article about Supply Chain Uncertainty Framework, we decided that
Nissan EVs belong to the responsive supply chain due to these following reasons:

1. Demand sensing and forecasting:

Accelerating electrified models to meet diverse and growing customer needs.

As part of Nissan Ambition 2030, Nissan announced its plan to 23 electrified vehicles,
including 15 EVs, by 2030. In response to changes in customer needs and the business
environment, Nissan has revised its plan to further accelerate electrification. Nissan
will increase the number of models to meet the growing needs of customers for
exciting and diverse electrified vehicles, introducing 27 new electrified models,
including 19 new EVs, by fiscal year 2030. As a result, the electrification mix across
the Nissan and INFINITI brands by 2030 is projected to increase to more than 55%

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globally, up from the previous forecast of 50%. Increase in sales volume percentages
for electrified vehicles in 2026

In line with the progress of electrified vehicle penetration, Nissan’s latest forecast for
its sales mix of electrified vehicles sold in major markets in fiscal year 2026 is
expected:

Europe: 98% (up from 75%*)

Japan: 58% (up from 55%*)

China: 35% (from 40%*)

United States: 40%* (EV only; by fiscal year 2030)

This will increase the global sales mix of electrified vehicles from the planned 40
percent when the vision was announced to more than 44 percent by fiscal year 2026.

Nissan intends to further enhance customer experience through personalized services

for a long term engagement. Nissan will boost its Connected Car Service strategy
from enriched on-board content to enabling on-demand functions to cater to
diversifying customer needs. The company aims to achieve this through Software
Defined Vehicles and is already demonstrated by e-architecture currently installed in
Nissan Ariya and will be available in more models in the coming years.

2. Quick Response Capabilities

2.1. Nissan lead times

Nissan has said that delivery times vary across its range, but if a customer is flexible
on color and specification, some models are available in a matter of days. Cars
ordered that are not in stock will range in delivery times from a month for the popular
Nissan Qashqai and Leaf, three months for the Juke and X-Trail, and five months for

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the all-electric Nissan Ariya SUV. This demonstrates Nissan’s commitment to
reducing wait times for customers.

2.2. Rapid Order Processing

The Nissan e-NV200 model, for example, is equipped with rapid charge capabilities
and uses advanced technology for efficient energy management during charging,
reflecting the company’s overall approach to rapid service delivery

The Nissan e-NV200 is able to be slow, fast, and rapidly charged from public points,
depending on network and type of charge unit.

2.3. Efficient Distribution

Nissan has partnered with leading EV charging suppliers to enhance its charging
infrastructure across Europe, which will benefit Nissan Charge and Plugsurfing
charging services users in multiple markets. This expansion of rapid charging
infrastructure is part of Nissan’s efforts to accelerate the transition to full
electrification. Utilizing the advanced infrastructure supplied by Allego and E.ON, the
new initiative will see 24kW and 50kW combined CCS and CHAdeMO DC rapid
charging units installed at Nissan dealerships to benefit thousands of European
customers. Users of the Nissan Charge app or Plugsurfing public charging services in
multiple markets will be able to enjoy the benefits of the expansive network, enabling
access to available charging points at participating Nissan dealerships.

3. Collaborative Relationships

This far-reaching program paves the way for a renewal and strengthening of the
24-year partnership, creating a new agile spirit and harnessing the pioneering
technologies of all three Alliance members. This next level will create more growth
opportunities and help secure operating efficiencies for each Alliance company to
innovate and transform in the fast-changing market for automotive products and
mobility services.

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Moreover, Nissan builds true partnerships with suppliers, supplier quality evolves and
improves. Improving the relationship between Nissan and its suppliers requires the
construction of a management framework based not only on Nissan’s demands but
also on opinions from suppliers. To that end, Nissan holds regular global quality
conferences along with suppliers. At these conferences, top suppliers representing
Europe, China, North America and Japan gather together and share information about
the quality situation across the world. Through vigorous exchange of opinions,
participants explore future management challenges.

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4. Lean Manufacturing

The two “never-endings”

The purpose of the Nissan Production Way is to achieve “boundless synchronization

with customers and boundless exposure of problems and innovation”. Thus there are
two key aspects: Synchronization and Kaizen—known as the “two never-endings”.
Ideal synchronization means “produce when consuming”. In reality this means supply
when consumed, with a never-ending quest to make just-in-time supply perfect. The
overall objective is to reduce lead-times.

The two never-endings of the Nissan Production Way (Source: NPW Kaizen
Consulting)

Synchronization is the result of a holistic plan and discipline to the plan. For example,
it is not just the product on the line that moves; the carts with kitted parts to be
assembled and the operator often moves together with the line. There is no inventory
at the line other than the needed parts and simple two-bin systems of small standard
components. Standardization is the heartbeat of the system–the routine that makes it
all possible. Kaizen is the brain that constantly improves the standard and the
workplace. The methods for Kaizen are QC-circles, Nissan’s 4-boxes method, and the
classic PDSA. Andon makes sure the system is fit; the Andon cord is used many times
every day to eliminate any hick-ups that might occur. The result is a world-class
production system.

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 The Nissan Production Way: A proven XPS (Source: Nissan)

Nissan’s XPS deserves attention from more Western companies. Compared to Toyota,
the synchronization philosophy of Nissan is more geared towards lower-volume,
higher-variety, and more high-tech manufacturing. Exactly the type of characteristics
that western economies claim to have. Be warned though; even if the system is simple
in concept, it requires a level of discipline that is rare to find outside Japanese society.
However, Western plants like Nissan in Sunderland have proven many times that
world-class effectiveness is achievable with an approach like NPW.

5. Inventory Optimization

Nissan collaborates with dealerships to understand local EV market trends and

preferences. “In order to do that, we have to have a great partnership with our
suppliers to work on from the app stream earlier with the scale that we have to
provide,” - said CEO Uchida

Moreover, Nissan visualizes customer data in real time with a BI dashboard. They
have been working with the CEDAR (customer experience data analytics & reporting)
team for over four years to transform and visualize their customer data into a business
intelligence platform. They likely use data to optimize inventory by analyzing sales
trends, customer preferences, and regional demand for specific EV models.

6. Scalable and Flexible Infrastructure

In 2023, Nissan has announced it will build a third planned gigafactory in Sunderland
where three new fully-electric models are being manufactured as part of a £2 billion
investment by the manufacturer. The announcement means the EV36 Zero hub in
Sunderland, will consist of production of three electric vehicles (EVs), three

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gigafactories and up to £3 billion investment. Such investments suggest they are
adopting modern, scalable production methods that can be adjusted to meet changing
demands.

7. Technology integration

Nissan Intelligent Factory is built to respond to the latest trends and needs of
customers. A special feature of this factory is that robots are taught to master takumi
(master craftsman). With this takumi technique, they can produce the EVs or any
Nissan car faster and of highest quality leading to faster distribution.

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“Build your Nissan” is a tool on Nissan’s website that Customizes EV models
customers want based on their preferences (exterior color, engine size, drivetrain,
etc.). Nissan can then use this information to forecast demand of their customers,
communicate effectively with suppliers for better inventory management, production
mix adjustments, as well as reduced lead times.

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 REFERENCES

[1] Nissan further accelerates electrification strategy

https://global.nissannews.com/en/releases/nissan-further-accelerates-electrification-str
ategy

[2] New car delivery times: how long will you have to wait? | Carbuyer

New car delivery times: how long will you have to wait? | Carbuyer

[3] Nissan e-NV200 EV charging guide - Zapmap (zap-map.com)

https://www.zap-map.com/ev-guides/model-charging/nissan-e-nv200

[4] Nissan to enhance EV charging infrastructure with new fast charger rollout across
Europe (nissannews.com)

https://europe.nissannews.com/en-GB/releases/release-db8318528a007bc2450aeb588f
2de58a-nissan-to-enhance-ev-charging-infrastructure-with-new-fast-charger-rollout-ac
ross-europe

[5] Evolving Supplier Quality

https://www.nissan-global.com/EN/SUSTAINABILITY/SOCIAL/QUALITY/PROD
UCTS/PARTNER/