Using the Continental Tire case on page 538 and your own research, describe and evaluate the current global supply.
Supply Chain Design
Assignment Overview
For this assignment, you will assess the design of Continental Tire’s supply chain as described on page 538 in your text.
Assignment Directions
To complete this assignment:
Using the Continental Tire case on page 538 and your own research, describe and evaluate the current global supply.
Answer the the questions at the end of the case.
Apply the SCOR model and performance measures.
Identify and propose risk mitigation strategies.
Consider how the organization integrates governmental, legal, and environmental considerations and cultural understanding in its design.
Write a 3–4 page paper describing and evaluating the supply chain design.
Identify supply chain risks and recommend risk mitigation strategies.
Identify key performance indicators (KPI) for this supply chain and describe the chain’s performance versus competing supply chains.
Assess the integration of governmental, legal, and environmental considerations in the design of a global supply chain, and the degree to which it leverages cultural understanding.
As you complete your assignment, be sure your paper meets the following guidelines:
After considering Scott’s analysis, Continental awarded Sumter the plant and broke ground in March of 2012. It took an average of 300 people over 626,000 hours to complete the construction. Operations started in late October 2013, and full ramp up and expansion are expected to run through 2021. It’s now the largest land site for manufacturing of any kind in the world for the company. When company officials were asked what the intended use was for the sizeable plot of land they purchased, they simply smiled and responded, “We have big plans, and we are not constructing a golf course.”
QUESTIONS
1. Consider the dominant factors for manufacturing as described in the text. Briefly describe how each one may have influenced Continental’s decision to locate its new plant in Sumter, South Carolina instead of Mexico or Costa Rica.
2. South Carolina is also home to manufacturing plants for major tire competitors Michelin and Bridgestone. How might these two plants factor into the company’s location decision?
3. Explain why locating a plant solely on the basis of low labor costs may be the wrong approach.
