Michelin+Case

 ** MICHELIN CASE ** Even if you have the best pitcher in the league, when facing the opponent and one person gets on base, the team is doomed in winning the game. Michelin has a great pitcher, in this case it is the highest quality product in the tire market. But market satisfication cannot occur in absence of a catcher. The catcher is ‘forecasting.’ It is crucial to have accurate forecasting in order to improve the following element:

** SUMMARY OF IMPROVEMENTS ** ** SALES ** Developing an improved understanding of all product types to better supply the customers needs for different countries. Increasing knowledge of service levels to meet customer expectations.

Benefits: improves service levels and knowledge of products and not just of selected tires for certain vehicles. Clearer understanding equals product delivered on time, and customer needs being met per region.

 ** SYSTEMS ** Creating information systems for improved supply chains. Also more efficient systems for the planning and logistic departments.

Benefits: this will allow for better reaction time to market changes and decrease any challenge in the logistics. Allows for better forecast models and cost savings that can be past down to the customer.

** COMMUNICATION  ** There will be new communication technology and procedures put in place throughout supply chains in each country.

Benefits: This will improve decision making by not just manufacturing and sales, but also management. This will build a stronger operational structure to better service customer requests.   Improving the logistical capability of Sales, Systems, and Communication will better use of company resources to satisfy customer demands and service levels. **  SALES   ** FORECASTING: Forecasting needs its own designated department. Michelin at this point has given too many of the same responsibilities to different people. Delegation is needed. Delegating: When delegating responsibilities dealing with forecasting it is important not to have the same person from each country to draw up the forecasting for the next eighteen months. To ensure that there is objective data collected to make sure that there is a good representation of the past data to ensure. There should be zones in each country. -Each zone having a team of 10 to 15 persons -An Original Equipment specialist, Replacement specialist, sales manager, logistics manager -This is key so that the big picture is   -This team will meet once a month and discuss the current state of the zones in regards to forecasting the next eighteen months, doing this will ensure that the current forecast for the eighteen months is not set in stone, helping the forecasting to constantly being updated and more accurate as time goes on. Now that the Europe has been organized let us take a step back to globalize Michelin, our ultimate goal. **  SYSTEMS   ** Good quality tires will eventually need to be replaced and then the OE ( Original Equipment) will eventually decrease, it is normal for it to shoot up initially and then to drop down. The question is how long will it be until it hits it’s peak. And then that is when Michelin needs to attack a new market to keep them sustained. OE are given pref. and that should not be the case. Logistical Systems set into place will better clarify which department should be focused on. GLOBALIZATION CHART: ZONE CLARIFICATION: Explanation: This organization is made so that each region has a variety of areas to ensure that the forecasting is not culturally biased. This will ensure that the “big picture is focused one.” Each of the four zones should have some similarity in areas but it is through their differences that different problems will be tackled with systems and communication. Each zone will consist of 10 to 15 persons -An Original Equipment specialist, Replacement specialist, sales manager, logistics manager -They will meet once a month and various conference calls to discuss the current state of the zones in regards to forecasting the next eighteen months, doing this will ensure that the current forecast for the eighteen months is not set in stone, helping the forecasting to constantly being updated and more accurate as time goes on. // Leading to clearer communication ease of communication flow from department to department to then upper management. //    **   COMMUNICATION   ** Communication to the logistic directors, more coordination… simple and flexible (how can you incorporate a system that needs to be flexible, able to roll with the punches and change as the market changes   **   Bigger Scope:   **    Michelin is has a great product, like the great pitcher in a baseball game. We have proposed a clear concise outline to improve the logistical framework for not only Michelin Europe, but the entire company as a whole. By teaming with other regions around the world we will improve all areas of the company such as; forecasting, inventory management, and resource allocation. While doing so we guarantee customer service levels and expectations are met while still implementing for sales, systems, and communications.        Using these plans above is projected to decrease the differences between the forecasts and actual results.