Word Count: 2000 words(Executive Summary, TOC, Introduction, Conclusion, and References are not included in the word count)
Client Report
Word Count: 2000 words(Executive Summary, TOC, Introduction, Conclusion, and References are not included in the word count)
Assessment Aim: This assessment aims to apply the fundamental principles and practices of operations and supply chain management from all the sessions. Assuming the role of Strategy and Operations Manager, apply the tasks, tools and underlying principles of operations and supply chain management in the chosen manufacturing or service company to improve their organisational performance.
Context: The CEO of your chosen company asked you to detail the supply chain design of one of the products (pick a product from your chosen company) to a high-value based operations located in Singapore. Examples of high-value-based activities include advanced and flexible manufacturing, smart factory, R&D, smart warehousing, digital technology, precision engineering, biotechnology, etc. Merely describing these activities from internet sources will not be sufficient. You will need to prove and justify your recommendations using
appropriate models or supporting evidence.
Company name: Li Auto IncAssessment requirement:
In a group, develop a report for presentation to the CEO and/or Board of Directors of your chosen company, focusing on related issues in operations and supply chain management aspects, such as relocation and reshoring, technology, operations and supply chain, inventory, quality, sustainable development and circular economy challenges.
1. Develop a supply chain report for the chosen product for relocation in Singapore.
2. The report is to address the following:
a. Identify and draw a multi-tier supply chain (SC) and value-adding activities from all suppliers to the end customers (upstream and downstream) domestically and internationally, including:
Materials, information, and financial flows
Specific modes of transportation must be identified using appropriate icons, (e.g. if
using a train, use a train icon).
Identification and name of the (real-world) organisations in the SC, where possible.
b. Describe and discuss supply management and logistics issues from suppliers to final customers.
These decisions MUST be feasible and relevant to the product and customers.
c. Describe and discuss quality issues throughout the SC.
d. Describe and discuss inventory management issues throughout the SC.
e. Critically think about, describe and discuss the potential impacts of disruptive change, emerging
Industry 4.0 technologies (i.e. Artificial Intelligence, Internet of Things, 3D Printing, Big Data
Analytics, Cloud Computing, Blockchain, etc), sustainable development, and shifting geo political power and alignments on the supply/value chain.
Structure:
Use the following Report structure:
1. Title page
2. Executive summary
3. Table of Contents
4. Introduction
5. Discussion and Recommendations
Addresses each of the requirements shown in Assessment Requirements above at points 2(a)- (e) above.
6. Conclusion and limitations of this report
7. Reference (APA7th style)
8. Appendices (optional)
Assessment 1 Essay for E-Poster content
LI AUTO INC Operations and Supply Chain Overview Management
The automotive industry is changing rapidly, and Li Auto has become a leader with its latest product, the recently released Li Auto L8 EV. When we analyse this visual representation in-depth, we understand the complexities of manufacturing and distribution of advanced electric vehicles.
Supply Chain Objectives
LI AUTO INC.s LI L8 EV is a product with sustainability issues. Its design is part of the global green transportation movement. When the automotive industry is experiencing strong demand for electric vehicles, Li Auto strives to be at the forefront of this paradigm. Li Auto is not just a product, but also achieves sustainable development within the supply chain. The goals of supply chain operations focus on optimizing efficiency and adopting technology while maintaining environmental stewardship.
Supply Chain Content
purchase:
The raw materials for electric vehicles are purchased from metal suppliers and mining companies and used to manufacture the body and chassis of electric vehicles. Batteries are developed and produced in-house or purchased from specialist battery manufacturers.
Parts manufacturing:
The parts of electric vehicles can be divided into tires, electric vehicle interior, seats, chassis, battery integration and dashboard components. These parts are made in-house or in factories with outside sourced manufacturers. In final assembly, all components are brought together to form a complete electric vehicle, which involves the vehicle chassis, including the suspension system and battery location.
logistics:
Ship complete electric vehicles from the manufacturing plant to a distribution center.
Retailer:
The distribution centre will deliver the complete vehicle directly to the dealer's storage centre, and the dealer will send some of the complete vehicles to the local display centre, such as the display centre operating in Singapore Queenstown Alexander Rd.
After-sales service:
Customer inquiries, feedback and problem resolution centers are handled through a service network, which also includes maintenance and repair services for electric vehicles.
Issues & Challenges
Li Auto's battery supply is tight
Li Auto's excessive dependence on advanced lithium-ion batteries exposes it to potential risks in the battery supply chain. This is a serious threat to production capacity and delivery timelines. Thus, a resilient and diverse battery supply network must address these challenges.
Li Autos Global Parts Sourcing Complexity
It is challenging for the supply chain team to deal with various global suppliers. The team must respond quickly and dynamically due to different regulatory frameworks in each country and transportation-related complexities. Additionally, component sourcing becomes more complex because of geopolitical uncertainties.
Li Autos quality control challenges
Our consistent, high-quality standards are indispensable for Li Auto. In this context, the entire supply chain, from raw material sources to final product quality, is addressed by the Li Auto brand. As a result, stringent testing, inspection and certification activities have been implemented to ensure the excellence of our brand.
Li Autos Technological Advancement Pace
In the electric vehicle (EV) industry, technology moves very quickly, which means change should be constant. However, it is not enough to simply adopt new technologies; they also need to be seamlessly integrated into existing production processes. Therefore, a proactive approach is required to avoid falling behind other players in this highly competitive market.
Executive Summary
Li Auto has been going through supply chain difficulties hence resulting in production delays and increased costs; there are multiple avenues that the company could however adopt to improve functionality. The resultant new suggested supply chain will be more efficient and cost-effective and outcome would be a framework effective in allowing the company to produce more vehicles at a subsidized cost. The redesigned outline will also be hardier and reduce the risk of future disruptions as Li Auto will be able to compete more competitively in the electric vehicle market and continue to grow its business after these changes. This executive summary offers an overview of the projected redesign for the company.
Embracing advanced technology such as artificial intelligence and data analytics can improve forecasting and inventory management process. These changes are integral in ensuring a more responsive supply chain and working together with key providers and investing in long-term partnerships improves reliability and streamline communication thereby implementing efficient risk management strategies to address potential disruptions through maintaining a stable production flow. Li Auto can use sustainable sourcing options for the conservational intensions particularly adopting eco-friendly activities to align with the growing demand for environmentally conscious products is essential. Leveraging real-time tracking and visibility tools can provide transparency throughout the supply chain because they minimize delays and improving overall operational efficiency. Continuous process improvement and a commitment to innovation will be pivotal in adapting to the dynamic landscape of the EV industry as Li Auto can fortify its supply chain from effective implementation. The framework will remain agile, sustainable, and well-positioned for future growth and success in the swiftly evolving electric vehicle market.
Table of Contents
TOC o "1-3" h z u HYPERLINK l "_Toc153884898" Introduction PAGEREF _Toc153884898 h 4
HYPERLINK l "_Toc153884899" Discussion PAGEREF _Toc153884899 h 4
HYPERLINK l "_Toc153884900" Current Practices PAGEREF _Toc153884900 h 4
HYPERLINK l "_Toc153884901" Current Challenges PAGEREF _Toc153884901 h 5
HYPERLINK l "_Toc153884902" Possible Solutions PAGEREF _Toc153884902 h 6
HYPERLINK l "_Toc153884903" The Picture in 10 Years PAGEREF _Toc153884903 h 7
HYPERLINK l "_Toc153884904" Conclusion PAGEREF _Toc153884904 h 8
HYPERLINK l "_Toc153884905" References PAGEREF _Toc153884905 h 10
HYPERLINK l "_Toc153884906" Appendices PAGEREF _Toc153884906 h 11
HYPERLINK l "_Toc153884907" Appendix 1 PAGEREF _Toc153884907 h 11
IntroductionLi Auto Inc. is a Chinese company specializing in designing and developing top of the range smart electric vehicles. The establishment takes pride in its mission to create a mobile home with happiness since Li Auto is a pioneer in commercializing extended-range electric vehicles in China and has moved ahead and started volume production in November 2019. The companys current model lineup includes Li MEGA, a high-tech flagship family MPV, Li L9, a six-seat flagship family SUV, and Li L8, a six-seat premium family SUV, and the Li L7, a five-seat flagship family SUV (Li Auto, 2023). This report canvases the supply chain setting for the company and the possible avenues for changes. The role of chain logistics and management in the bigger supply economical set up cannot be ignored as the report breaks down Li Autos supply chain logistics from a global perspective because such issues are important to help the company achieve a sustainable production framework and change the EV industry.
DiscussionCurrent PracticesThe vehicles from Li are made from raw materials from allover the region and occasionally from the global partners. The company purchases metal supplies from mining companies then the next step is to manufacture the body and chassis of electric vehicles. Batteries are produced in-house while some instances see purchases from specialist battery manufacturers and other parts can be divided into functionable sections for an easier break-down. There are tires, EV interior, seats, chassis, battery integration and dashboard features since Li combines both internal and external manufacturing regimens. Appendix 1 depicts the Engine Manufacturing process being done by Sichuan Ideal Xinchen Technology while on the other hand the tire manufacturing duties are assigned to Michelin while the Battery Manufacturing is done by Jiangsu Times New Energy Technology. The final assembly activity is done as soon as the relevant department collates materials to form a complete EV and, in the end, the parts are brought in or manufactured in-house to form the vehicle chassis, suspension system, and battery installation.
Li Auto's logistics framework includes the shipment of fully assembled electric vehicles from its manufacturing plant all the way to a centralized distribution center and later on the distribution center seamlessly released complete vehicles to dealers' storage showrooms. Dealers, in turn, distribute a portion of these vehicles to local dealers show rooms, exemplified by the Queenstown Alexander road display center in Singapore. This well arranged process ensures a direct link from the manufacturing stage, distribution process, and retail, enhancing efficiency and reducing the lead times. Post-purchase, Li Auto prioritizes customer satisfaction through a comprehensive after-sales service network. customer inquiries, their feedback, and issue resolution are seamlessly managed through this network, which also encompasses maintenance and repair services for electric vehicles. By establishing a reliable and integrated system, Li Auto strives to provide a fulfilling customer experience, from the initial purchase to ongoing support and service.
Current ChallengesThere are multiple issues on Lis supply chain affecting different stages on the production and delivery line and the dependence on Lithium-Ion batteries could be an issue depending on the supply of the raw materials to the company (Ding et al., 2019). The delivery setting of the batteries are also pegged on multiple other issues including the mining companies and the jurisdictional requirements in the respective countries. China has a good supply of these materials at the time although a disruption could be imminent with the increasing demand for EVs as the supply chain team at the company could find it difficult to deal with a global supply system. Every country has requirements that have to be followed carefully for effective operation for instance in transport related regulations for volatile material like lithium-ion products. The issues become more complex when inter-state borders are involved. Therefore, the team must respond dynamically to adapt to these requirements to avoid constraints and delays.
Li Auto faces notable challenges in the realms of quality control and technological advancement pace; the company strives to maintain high standards in the production of electric vehicles. By ensuring consistent superiority across a rapidly growing merchandise line can be complex as Berger et al., (2023) explain since more issues could be found with the need to address manufacturing variations and potential defects. Robust measures become paramount to meet customer expectations and maintain a positive brand reputation notwithstanding the rapid pace of technological advancement in the electric vehicle industry presents both opportunities and challenges for Li Auto. Maintaining the lead and premium expertise is essential for competitiveness and it requires significant investments which include research & development, and adaptation of new innovations. Balancing the pace of industry evolution with effective integration into Li Auto's vehicle models is crucial to meeting demands and staying ahead in a dynamic market.
Possible SolutionsThe current supply chain challenges in the company can be dealt with using advanced technology and therefore AI and data analytics are an avenue to employ in the quest for a transformative solution (Zamani et al., 2022). These infrastructural changes could be important in precise forecasting and production planning for instance Li cannot be affected with sudden reduced Lithium-Ion battery supply if they have AI backed data systems. They would have predicted the same in due time and made the necessary adjustments since such integration enhances the overall responsiveness of Li Auto's supply chain. The company will have an easier time mitigating delays and improving operational efficiency. Li should implement these systems for better quality from the production to the supply phases. Take an example of a return batch being processed and, in such AI, can be used for the inventory system to automatically key the logistics and receive the batch without unnecessary paperwork.
Additionally, fostering collaboration with key suppliers and cultivating long-term involvement is important. Such relationships represent a strategic move to address reliability issues and streamline communication as Li Auto can create a more cohesive and interconnected network by building strong associations throughout the supply chain. The company will benefit by reducing the risk of disruptions and enhancing overall supply chain resilience and further the problem of struggling to keep up with advancements would be sorted in this regard since Li would be set to receive the best materials and stay at the helm of the industry. Implementing robust risk management strategies is imperative to tackle potential disruptions stemming from geopolitical issues or supply chain volatility. Proactive measures, such as scenario planning and diversification of suppliers, can fortify Li Auto's supply chain since there could be guaranteed stability in production flow even in the face of unforeseen challenges. Li Auto could position itself for sustained success in the highly dynamic and competitive electric vehicle market with these solutions.
The Picture in 10 YearsLi Auto is expected to make multiple changes to its supply chain over the next decade. The company will most likely focus on reducing costs by leveraging technology. The use of machine learning could be an avenue to explore as there would be more transparency and traceability throughout the system whereby Li can trace which vehicles are sold in a specific area and additionally use the information to compare performance. Such changes will also be important to reduce waste while eliminating redundant practices and overall, technology is always evolving and so is Lis dependence on it. The next 10 years will be heavily leveraged on improving efficiency using machine learning and other infrastructure.
The company is also expected to expand the supplier base to reduce delays in delivery a key component of the supply chain. expanding in this regard could mean taking on a number of the production practices for raw cloth. In-house production improves supply chain efficiency due to the fact there are not any undue dangers including volatile deliver of components. An advanced deliver base trickles over to a strong logistics network. various gamers on the chain advantage from decreased transport instances and costs during. as a consequence, more providers over the subsequent 10 years are critical for better provider shipping and reduced charges.
Over the subsequent decade, Li vehicle can pioneer environmentally sustainable deliver chain control with the aid of prioritizing renewable energy assets, clean materials, and carbon-neutral transportation. imposing green logistics practices, inclusive of optimizing routes and leveraging electric or low-emission cars for transportation, might drastically reduce the organizations carbon footprint. Collaboration with suppliers devoted to sustainable practices and adopting circular economy ideas can further decorate Li vehicle's ecological impact. additionally, non-stop innovation in recycling and waste discount in the manufacturing procedure could align with international sustainability goals. those practices might be essential in positioning Li vehicle as an enterprise chief in environmentally responsible deliver chain management.
ConclusionLi Auto faces various issues in its operations including dependency on the Li-ion batteries and the pace of technological advancement. Adopting a large supply base would be integral in dealing with the former issue because the latter can be mitigated by embracing AI and machine learning. Effective implementation of these solutions will streamline the chain with the effects being felt throughout the organization as this report has highlighted the need for sustainable development in the EV industry. There is so much to it other than just avoiding carbon and related products. The electric vehicles come with the risk of waste and short life cycles, which would defeat the purpose of reducing pollution. Generally, Li can implement the changes and streamline its supply chain framework.
ReferencesBerger, N., Schulze-Schwering, S., Long, E., & Spinler, S. (2023). Risk management of supply chain disruptions: An epidemic modeling approach. European Journal of Operational Research, 304(3), 10361051. https://doi.org/10.1016/j.ejor.2022.05.018
Ding, Y., Cano, Z. P., Yu, A., Lu, J., & Chen, Z. (2019). Automotive Li-Ion Batteries: Current Status and Future Perspectives. Electrochemical Energy Reviews, 2(1), 128. https://doi.org/10.1007/s41918-018-0022-z
Li Auto. (2023). Investors Overview | Li Auto Inc. Ir.lixiang.com. https://ir.lixiang.com/
Zamani, E. D., Smyth, C., Gupta, S., & Dennehy, D. (2022). Artificial intelligence and big data analytics for supply chain resilience: a systematic literature review. Annals of Operations Research. HYPERLINK "https://doi.org/10.1007/s10479-022-04983-y" https://doi.org/10.1007/s10479-022-04983-y
