...Proposed Site for AIAI in Europe John MNGT545 Case S7.1 04/07/2015 PROPOSED SITE FOR AIAI IN EUROPE American International Automotive Industries (AIAI) manufactures auto and truck engines, transmissions, and chassis parts for manufacturers and repair companies in the United States, South America, Canada, Mexico, Asia, and Europe. AIAI currently ships its parts into Hamburg and Gdansk to be able to reach customers throughout Europe. Since the company is growing and complaints have been arising about late deliveries, American International Automotive Industries is looking for a new distribution site to help in Europe. Before a site can be chosen, the company must first look into what factors will best keep costs down as well as make quicker deliveries with fewer damaged products. With American International Automotive Industries’ European headquarters being in Hamburg, the vice-president for construction and development has provided the company with five potential sites to choose from. These sites are Dresden, Lodz, Hamburg, Gdansk, and Frankurt. AIAI also needs to keep in mind where their seven main customers are located. These customers are located in Vienna, Leipzig, Budapest, Prague, Krakow, Munich, and Frankfurt. Understanding that these customers are important to AIAI and those quicker deliveries can make happier customers. American International Automotive Industries needs to come up with a strategic focus in order to maximize the benefit...
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...American International Automotive Industries (AIAI) manufactures auto and truck engine, transmission, and chassis parts for manufacturers and repair companies in the United States, South America, Canada, Mexico, Asia and Europe. The company transports to its foreign markets by container ships. To serve its customers in South America and Asia, AIAI has large warehouse/distribution centers. In Europe it ships into Hamburg and Gdansk, where it has contracted with independent distribution companies to deliver its products to customers throughout Europe. However, AIAI has been displeased with a recent history of late deliveries and rough handling of its products. For a time AIAI was not overly concerned since its European market wasn't too big and its European customers didn't complain. In addition, it had more pressing supply chain problems elsewhere. In the past five years, since trade barriers have fallen in Europe and Eastern European markets have opened up, its Europeans business has expanded, as has new competition, and its customers have become more demanding and quality conscious. As a result, AIAI has initiated the process to select a site for a new European warehouse/distribution center. Although it provides parts to a number of smaller truck, and auto maintenance and service centers in Europe, it has seven major customers—auto and truck manufacturers in Vienna, Leipzig, Budapest, Prague, Krakow, Munich, and Frankfurt. Its customers in Vienna and Budapest have adopted manufacturing...
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...American International Automotive Industries (AIAI) manufactures auto and truck engine, transmission, and chassis parts for manufacturers and repair companies in the United States, South America, Canada, Mexico, Asia, and Europe. The company transports to its foreign markets by container ships. To serve its customers in South America and Asia, AIAI has large warehouse/distribution centers. In Europe it ships into Hamburg and Gdansk, where it has contracted with independent distribution companies to deliver its products to customers throughout Europe. However, AIAI has been displeased with a recent history of late deliveries and rough handling of its products. For a time AIAI was not overly concerned since its European market wasn't too big and its European customers didn't complain. In addition, it had more pressing supply chain problems elsewhere. In the past five years, since trade barriers have fallen in Europe and Eastern European markets have opened up, its Europeans business has expanded, as has new competition, and its customers have become more demanding and quality conscious. As a result, AIAI has initiated the process to select a site for a new European warehouse/distribution center. Although it provides parts to a number of smaller truck and auto maintenance and service centers in Europe, it has seven major customers—auto and truck manufacturers—in Vienna, Leipzig, Budapest, Prague, Krakow, Munich, and Frankfurt. Its customers in Vienna and Budapest have adopted manufacturing...
Words: 358 - Pages: 2
