Case Study Presentation. By: Lillie Collins, Daniel Mayer , Stephen Buyachek , Michael Mayer. What comes to mind when you hear Harley Davidson?. http://www.youtube.com/watch?v=Rbh-mfEkj2I&feature=player_detailpage
By: Lillie Collins, Daniel Mayer, Stephen Buyachek, Michael Mayer
Harley Davidson has a loyal fan base that interacts via clubs, events and a museum.
For their 105th anniversary, in 2008, Harley Davidson had 125,000 preregistrations for the event.
Here in Vegas they offer learn-to-ride classes, motorcycle rentals and other events such as Street Vibrations Rally in Reno, Nevada.
Founded in 1903
1920, largest motorcycle manufacturer in the world with 28,000 motorcycles/year with 67 countries
1998, shipped 150,000 motorcycles up 14% from 1997
Plan 2003, increase production capacity by 100thanniversary
1995, Garry Berryman joined
Brought the will to change the purchasing organization
What is unique about Harley’s Organizational Structure?
Create Demand (CDC)
Produce Products Group (PPG)
Provide Support (PSC)
Circles of Leadership
Information Technology Circle (ITC)
85% of time spent on non-strategic activities (reviewing inventory, data entry, etc.)
1. Design and Foundation
2. Request Definition
5. Supply Management
6. Project Tracking
Which are most important?
+ Culture Match
+ Change Mgmt.
+ Training Processes
- Functionality (Web Enablement)
+ Existing Relationship
- Too Formal
- Training Process
Which provider would you choose and why?
Which option do you like best?
Do you see any pros or cons?
In 1996, Harley Davidson announced their ambitious “Plan 2003”.
Their goal was to double manufacturing capacity to 300,000 by the year 2003, coinciding with their 100 year anniversary.
Do you think they were able to exceed their goal of 300,000 motorcycles by 2003?
On August 9th 1999, Oracle announced Harley Davidson’s selection of Oracle Internet Procurement, a premier Oracle e-business solution, to streamline and support its procurement function across all domestic manufacturing sites.
The need to standardize arose as a result of the prior establishment of essentially separate procurement systems at each of its domestic manufacturing sites which led to numerous separate systems, fragmentation of procurement data, and manual process integration across sites.
As a result, they will be consolidating all U.S. manufacturing production and non-production related procurement across its eight domestic sites into a single automated procurement system, in order to streamline processes, reduce costs, and consolidate demand across the enterprise.
Garry Berryman optimized Harley’s supply chain by reducing their 3,000 maintenance, repair, and operating (MRO) suppliers to three primary ones.
The direct suppliers that provide the parts that go into making motorcycles and accessories were consolidated from 1,000 to 350.
Why did Harley reduce the number of suppliers when they just implemented a system to help manage this kind of purchasing?
By reducing the number of suppliers, Harley could focus on developing a deeper relationship with these key suppliers by inviting them to get involved in product design and manufacturing processes.
From what we learned in class, what are some ways Harley Davidson could open it’s doors to suppliers and exchange data?
Harley Davidson standardized their forms and procedures and required all suppliers to use EDI. As not all suppliers had the capabilities to perform EDI, Harley Davidson eventually created a web based portal called the Harley Davidson Supplier Network.
Harley also utilizes bar codes and electronic trigger systems for replenishing parts so that their systems notify suppliers when they are running low on inventory.
Harley Davidson picked ManugisticsNetWORKS collaborative solutions to power the H-D Supplier Network. Manugistics also provides seamless integration with Oracle’s applications. Together, Manugistics and Oracle will enable Harley to leverage best-in-class supply chain optimization and enterprise resource planning (ERP).
The Web Portal is designed to enable Harley Davidson and its suppliers to conduct transactions, ranging from placing purchase orders to invoicing, over the internet.
Nearly 300 of Harley's 695 parts suppliers log on to applications through the supplier portal.
Suppliers can view production forecasts, account status, and two-dimensional drawings of parts while also being able to submit shipment notices and receive inventory-replenishment alerts.
The portal eliminates the expense of EDI and is proving even more reliable than EDI.
Overall, the portal has allowed Harley to work with longtime suppliers to achieve lower costs, consistent quality, and improved delivery performance.