Case Study on Nissan Supply Chain Strategy


Nissan’s Primary Strategy

Nissan has been one of the pioneers of Japan’s automobile industry. The strategy that Nissan has adopted involves the policy of managing the supply chain process effectively with a focus on flexibility. Regarding the supply chain of Nissan, the aim of Nissan was to decentralize their supply chain but change the structure in the event of a crisis. This type of strategy was made due to the multiple instances of crises which made an impact to the automobile industry in Japan. The contingency plan in the supply chain structure was that when there was a crisis, the supply chain control changed into a robust central control system. This enabled Nissan to ensure the sales continued till the crisis was averted and also to restore balance quickly after a crisis.
Nissan had a diverse staff which was a unique quality among the Japanese automobile industries. This factor was considered as a strength in a global scenario. As the focus of the strategy was flexibility, Nissan held on to the simplified product line for a rapid production process. Nissan also had hybridized strategies for different body parts of different models. For certain parts, a build to stock strategy was applied while in case of the other parts, a build to order strategy was applied. This strategy not only helped Nissan keep the operations simple but it also enabled an increase in sales.

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Posted on

March 7, 2018

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