Automotive Supply Chain

As I was reading the, Learning from Tata’s Nano article, I was intrigued by the idea of a car selling for only 2,500. I was surprised to learn that a car could be manufactured and sold for such a low price but I as continued to read this was possible because the Nano is composed of components that can built and shipped separately to other locations. In addition, to being fascinated by the assembly process of the cars; I was curious to see how forecasting could be applied to this budding business and what impact it would have on the process. Would forecasting hurt or improve the process?(http://www.businessweek.com/stories/2008-02-27/learning-from-tatas-nanobusinessweek-business-news-stock-market-and-financial-advice)

After, learning about this interesting assembly method, I wondered if that method could be applied to Western automotive companies?  According to The American Automotive Industry Supply Chain – In the Throes of a Rattling Revolution article, it would very difficult for Western (American) automotive companies to apply these innovative techniques because of their stringent and archaic supply chains they have established with suppliers. Would companies be able to negotiate new terms with suppliers so that they can streamline their SC and cut costs? Also, since SC is changing throughout the global market and adopting more efficient methods, will  Western (American) automotive companies have to take on Tato’s approach or other streamlined approaches so that they may stay competitive in the constantly evolving global market? (http://www.trade.gov/mas/manufacturing/oaai/build/groups/public/@tg_oaai/documents/webcontent/tg_oaai_003762.pdf)

Sources:

Hagel, John, and John Brown. "Learning from Tato's Nano." Bloomberg Businessweek. N.p., 27 Feb. 2008. Web

"The American Automotive Industry Supply Chain – In the Throes of a Rattling Revolution." Www.trade.gov. N.p., 29 Apr. 2005. Web.