Supply Chain Analysis of Harley-Davidson

Harley-Davidson is a motorcycle manufacturing American multinational company. William A Davidson, Walter Davidson, Arthur Davidson, and William S Harley founded the motorcycle manufacturing company in 1903. Today, we’ll discuss the supply chain analysis of Harley-Davidson; it focuses on various SCM elements like procurement planning, inventory management, warehousing, automation, transportation, and distribution.

Supply Chain Analysis of Harley-Davidson

Let’s discuss the main elements of the supply chain analysis of Harley-Davidson are as follows;

Suppliers Network

Harley-Davidson has established a very large network of suppliers, vendors, and manufacturers in various countries across the world. The large supplier’s network helps the company to ensure the smooth availability of raw materials, supplies, parts, tools, and components without any delays and disruptions. Some of the main suppliers and manufacturers of Harley-Davidson are as follows;

• Marcolin Spa, Italy
• Reca Mainetti Asia, Hong Kong
• Gal Mar Fwd, USA
• Rk Stratman, USA
• Sinergi Karya Kharisma, Indonesia
• Copart, USA
• Fashion Hub Group, Australia
• Hdmc Thailand

Procurement

Harley-Davidson has divided its procurement unit into areas and they’re as follows;

• Operational Procurement: supports and facilitates daily item needs
• Development Procurement: collaborates with the new product development and designs

The development procurement unit closely collaborates with the product development centers. It allows them to comprehend the product development strategy of the company, and whether the existing suppliers have sufficient capability to meet the new product needs and requirements. However, the procuring engineers collaborate with the product engineers for the new designs of the product.

The procuring engineers inform the product development center about the sourcing of supplies, availability of alternative supplies, and the new technological development. They are aware of the fact that manufacturers source materials and alternatives from across the globe; the procuring unit plays a key role in launching the new motorbike into the market.

Harley-Davidson’s procurement professionals should follow certifications to work for the motorbike brand;

• American Production and Inventory Control Society
• Certification in Production and Inventory Management

Involving Suppliers

The on-site suppliers of Harley-Davidson play a critical role in ensuring the new product design satisfies the cost and quality requirements of the engineering teams. The supplier’s advisory council of Harley-Davidson requests advice on the strategic matter of any problem and issue. They have 16 suppliers delegates and they serve 4 years rotation on the council.

Relationship with Suppliers

Harley-Davidson has cut ties with all the suppliers, vendors, and manufacturers that don’t meet the cost, timing, and quality requirements of the motorcycle brand. The company follows the win-win strategic approach in building the relationship with the suppliers; the brand helps them to grow and prosper.

Harley-Davidson used to have a large suppliers network and now the company procures 80% to 90% of the supplies from the three main suppliers. The 80% of procurement suppliers are those who actively participate and engage in the company’s strategies.

Cost and Quality

Harley-Davidson expects and demands from its suppliers to become cost-efficient. The motorcycle brand requires them to achieve cost efficiency by employing the latest technological tools and equipment. Along with cost improvement, Harley-Davidson also requires them to achieve higher quality standards. The brand develops a strategic quality plan for them to meet; in fact, it is obligatory for suppliers to meet and satisfy the quality improvement standards and requirements.

Cycle Time Management

Harley-Davidson is putting a great emphasis on improving and reducing the procurement cycle time. It requires the company to improve and modify its catalog content. Employees and team members would visit the catalog of the suppliers to gather information about components and parts. However, it helps the company to make the procurement system more efficient and improve the cycle time with a self-service workflow.

Relationship Management

Harley-Davidson employs the internet and digital-based tools and equipment to communicate with suppliers and share information. It helps the company to satisfy the delivery requirements, quality expectations, and other requirements. In fact, the motorcycle brand has built a specialized suppliers portal to link suppliers’ communication with the company.

Sustainability

Harley-Davidson puts a great emphasis on the sustainability of software, systems, and technology. The company makes sure that its Sil’K system should perform well in the long term. However, it helps the company to launch regular updates and make it user-friendly.

Inventory

Harley-Davidson follows the JIT (just-in-time) strategic approach for managing the inventory. The motorcycle brand runs and maintains the inventory for 6 to 10 days. The efficient inventory management system helps the company to reduce the cost and save time.

Conclusion: Harley-Davidson Supply Chain Analysis | Harley-Davidson Supply Chain Management

After an in-depth study of the supply chain analysis of Harley-Davidson; we have realized that Harley-Davidson is the world’s leading motorcycle manufacturing brand. If you are learning about the Harley-Davidson supply chain analysis; then you should keep in mind the abovementioned SCM elements; procurement, planning, transportation, automation, inventory management, and sortation.