LOGISTICS AND SUPPLY CHAIN IN PORSCHE PANAMERA

Have you ever heard about the Porsche Panamera? This is one of successful car ever build by Porsche in Germany. With all their hardships from the strategic planning, tactical planning and operational planning to build this car, finally this car have announced as the best selling car in US.

We're going to write on how Porsche able to control all the activities by involving logistics and supply chain management.

Time management is very crucial in manufacturing such a prestige car. Time should be reduce to enforce lower cost and fully utilized. Porsche has three (3) different plants around the Germany. This strategy is to make sure the management of Porsche able to handle the operation of transforming the materials to assemble to finished goods, and optimize the works in producing Panamera. Porsche has three different plants, which is:

1. Hannover (to make and paint the body parts)

2. Stuttgart (to produce the engine)

3. Leipzig (to assemble all of the parts and apply on customization)

As you know, the delivery part is delivered 40 times a day to decrease the uses of inventory.  Every single part will unload within 2 minutes 30 seconds. Every step to install the part is 2 minutes 20 seconds. They use human hand tools and computer as the computer also has disability to reach the difficult process/processes of installment.Did you know, they only need 2 minutes to install the engine into body, compared to the previous Porsche that could take over 30 minutes!

Porsche has applied customization in their business strategy. Customer can choose different engine according to their custom specification needed. They can choose different seats leather from various 9 different colors. The color of paint on the car also depends on what customer's want. This customization may lead the company to satisfy the customer's requirement.

Porsche use two (2) modes of transportation, which is rail and truck. Rail mode used to transport the body from Hannover to Leipzig and truck mode used to transport engines from Stuttgart to Leipzig as the assembly line was centralized at the Leipzig.

Porsche care about the perfection. After they installed accessories at the assembly line, they will test drive the car whether the car is in high performance or not. Porsche also doesn't care fuel consumption, but performance.