A CASE STUDY ON SUPPLY

CHAIN MANAGEMENT OF
HYUNDAI MOTOR

PREPARED BY-VAIBHAV
PATEL
ENROLMENT NO-17103344
INTRODUCTION
• The Hyundai Motor Company, commonly known
as Hyundai Motors is a South
Korean multinational automotive manufacturer headquartered
in Seoul. Hyundai Motor Company was founded in 1967 and,
along with its 32.8% owned subsidiary, Kia Motors and its
100% owned luxury subsidiary Genesis Motor altogether
comprise the Hyundai Motor Group. It is the third
largest vehicle manufacturer in the world.
• Hyundai operates the world's largest integrated automobile
manufacturing facility in ULSAN South Korea which has an
annual production capacity of 1.6 million units. The company
employs about 75,000 people worldwide. Hyundai vehicles
are sold in 193 countries through some
5,000 dealerships and showrooms.
Supply chain management
How SCM works
Strategy of supply chain management
 The Make Process
• Hyundai’s management gets most of its tasks
related to planning, sales, resolving
conflicts and coordinating various
departments by its production and sales
control department. Suppliers are not
involved in the production plannings but they
are informed of the planning process by a
network called EDI system.
Manufacturing Process
 The Key Flows In Supply Chain
• In order to beat the competitive environment,
company need supply chain management that includes
that the flow of raw materials from suppliers,
information flow from the manufacturer to the
customer, purchase, dispatch, invoice etc.
• Cash flow is also part of it where cash flow is also
observed from the customer to the manufacturer.
• Efficiency in all the three is required to get maximum
productivity from the given resources.
• Hyundai has many suppliers (that include many first
tier suppliers, 2nd tier supplier, 3rd tier and higher as
well) that are domestic and international.
SCM department also faces issues as
follows:
• Production and sales requirement not always
meet, due to limited production capacity.
• Domestic and international sales managers have
to compete to meet the delivery deadlines.
• Wherever there is a change in the production
schedule, it leads to shortage or over supply of
inventory.
• Changes in the current design or new product
addition, arise lot of coordination issues
 The Production and sales control
department faced many problems like,
• planning process
• For the new department, so they were not
lacking any experience and the kind of rules and
policies required to run the department.
• Lack of training was the other issue that they
were facing to solve daily problems and handle
conflict.
• managing information flows were also one of the
problems because Hyundai was not having a
common database to link different groups.
 Recommendations On The Above
Listed Problems
• Supply chain Management training: Training is
very essential to the employees of the
organization in order to get best out of them.
Only if they are trained that they know what to
do and how to do smartly.
• Integrating processes of logistics with suppliers: it
is important to integrate the logistic process with
the suppliers, using certain softwares like ERP.
This will help the customer to have a better
understanding of the customer’s inventory.
 The Supply Chain Forecasting
There are three techniques that are used
• Causal models.
• Time series analysis and projection
• Qualitative technique
 Hyundai Logistics
• Hyundai Logistics is a customer-friendly
integrated logistics company with an advanced
procurement, storage, and transportation system
and many various logistic resources
internationally and domestically.

• Parcel Delivery
• Ocean Freight Forwarding
• Air Freight Forwarding
• Domestic Service
• TPL Service