Supply-chain synchronization: Lessons from Hyundai Motor Company

One of the challenges of supply-chain management is developing ways to effe ctively integrate activities across organizations on the supply chain. Hyun dai Motor Company developed mechanisms to coordinate production planning an d scheduling activities among supply-chain members. Hyunclai Motor's produc tion-and-sales-control (P/SC) department uses regularly scheduled cross-fun ctional meetings and scheduling policies to coordinate supply-chain activit ies. When implementing this process, the P/SC department overcame structura l, environmental, and behavioral problems. Although Hyundai management conc edes that the process is not perfect, communication among supply-chain memb ers has improved, and the P/SC group has successfully promoted mutual under standing and respect among functional areas. The primary benefit, ultimatel y, is improved customer satisfaction through better integration of function al activities.