One of the challenges of supply-chain management is developing ways to effectively integrate activities across organizations on the supply chain. Hyundai Motor Company developed mechanisms to coordinate production planning and scheduling activities among supply-chain members. Hyundai Motor's production-and-sales-control (P/SC) department uses regularly scheduled cross-functional meetings and scheduling policies to coordinate supply-chain activities. When implementing this process, the P/SC department overcame structural, environ mental, and behavioral problems. Although Hyundai manage ment concedes that the process is not perfect, communication among supply-chain members has improved, and the P/SC group has successfully promoted mutual understanding and respect among functional areas. The primary benefit, ultimately, is improved customer satisfaction through better integration of functional activities.
Hahn, Chan K.; Duplaga, Edward A.; and Hartley, Janet L., "Supply-Chain Synchronization: Lessons from Hyundai Motor Company" (2000). Management Faculty Publications. 8.