When we look at the supply chain of Renault it does not differ much from other car manufacturers. The making of a car starts with the design of the chassis, which is done by the designing department of Renault. When the design is approved, a concept car must be produced to check the feasibility of the car. When the concept car has proven feasible the real process in the supply chain begins. Renaults owns plants where the certain car is produced. In order to manufacture the car Renault needs suppliers.
This is the first part of the supply chain of Renault. When we take a closer look at the suppliers in the supply chain we can divide this in raw materials, standardisers, component specialists and integrators.
Raw material supplier supplies for example Steel banks, Aluminum ingots and Polymer pellets. This supplier can operate on a local, regional and global level.
Standardisers are suppliers that deliver for example tires or electronic systems for the car. Their market presence is on a global level.
Component specialists supply stampings, injection moldings or other engineering components for the car. Their market presence is also on a global scale as far as the first line of producers, after that the 2nd and 3rd line are present on a regional and local level.
Integrators are suppliers who deliver interiors, doors and chasis. They operate on a global level (Kumar & Veloso, 2002). These are the most important suppliers on left hand of the supply chain. All these supplies are ordered and shipped to the plants of Renault. This is the second part in the supply chain of Renault. The plants of Renault are located in different countries in Europe including the plant of Dacia, which is also owned and produced by Renault. The different locations of plants are spread over France, Romenia, Slovenia, Spain and Turkey (Eurofound, 2007).
When we move further down the chain, after the cars are manufactured they have to be distributed