Thursday, November 10, 2011
What Can Tata's Nano Teach Detroit?
Author talks about how Tata Nano has made the "Big Three" of Detroit to rethink their Supply Chain Strategies. The author talks about "Reforging the Supply Chain", where he mentions the various points which we discussed in the class while discussing about Tata Nano like. Tata brought in suppliers such as Bosch, and Delphi in early-stage design, challenging them to be full partners in the Nano innovation by developing lower-cost components.
Author also mentions another interesting point, which was questioned in the class, which was Tata's plans to build the Nano as a kit, shipping parts to a local business for assembly. This raises quality issues,Tata's brand will suffer if these local assemblers do shoddy work—but it also significantly lowers Tata's capital costs. The company doesn't need to build lots of assembly plants or hire and train assembly workers, or take responsibility for shipping the finished product.