Volkswagen – FAST and serious?
The second biggest car manufacturer in the world, Volkswagen (VW), announced it plans to optimize their global supplier network. The new initiative is called “Future Automotive Supply Tracks” (FAST). As the VW group owns a number of biggest car brands: SEAT, Lamborghini, Bugatti, Škoda, Audi, Bentley, MAN and Scania commercial vehicles, the FAST initiative will have an impact on the whole automotive industry. FAST aims to prioritize investments and use resources more efficiently by creating a closer collaboration with suppliers. Only suppliers identified as the best will gain access to FAST. The main benefit for suppliers will be the ability to take part in the innovation cycles within the group, meaning they will be able to contribute ideas during the development of new vehicles. In this way, Volkswagen will set a new standard in the industry, which will encourage competitors to improve their relationships with suppliers.
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Target’s way back to the top
Target plans to invest $1billion in technology and its supply chain. The retail giant has suffered losses after a massive data breach and is now planning to cut several thousand jobs over the next two years, mainly in their corporate headquarters in Minneapolis and India. The newly appointed CEO, Brian Cornell, aims to change the focus of the corporate culture from process oriented to meeting the demands of customers. The first step was to halve the threshold on free shipping, as a result, undercutting other big Target competitors, like Wal-Mart. In order to get customers’ trust back and regain the strong market position, Target needs to attract new customer groups, such as millennials. Significant investments in supply chain and technology will help Target get closer to that goal.
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Collaboration can save billions
According to Achilles, a business information provider, global businesses could save over $30 billion a year if they would share information about suppliers. According to study results, only one third of global companies in the UK, US, Spain, Nordic countries and Brazil collaborate with similar businesses and share information about their suppliers. 300 large businesses from the manufacturing, oil and gas, construction and utilities sectors took part in the survey. More than two thirds of the respondents stated that local and international divisions of their company require the same information about suppliers.
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Have a nice weekend!
