Business and logistics hub integration to facilitate global supply chain linkage

Abstract

With the development and integration of the global supply chain, manufacturing industries are rapidly adjusting their modes of operation within and between enterprises. Existing manufacturing processes are being improved to meet the requirements of lean and agile manufacturing, and suppliers are given additional responsibilities to provide parts and services dynamically. An enterprise must strategically re-engineer its operations model to face the rapid changes of the global market place. This paper identifies prevailing challenges and highlights a future vision of the global logistics management framework for the automotive industry. An integrated business and logistics hub (IBLH) model integrating information flows (via the business hub) and material flows (via the logistics hub) is presented. This research uses the case of a Taiwan automobile parts and assembly manufacturer to analyse the processes of the IBLH. The goals of the case are to shorten supply chain processes, reduce inventory costs, and ensure information transparency during material flow and product distribution. Finally, this research provides suggestions to depict the case company's current limitations and deficiencies, and presents a future plan for e-logistics services.