Application of Value Stream Management to enhance product and information flows in supply chain networks - based on the example of web-based automotive retail business

Due to globalized business operations, companies in different economic sectors are part of
complex supply chain networks. Their value-added processes comprise product and information
flows, e.g. with a focus on manufacturing, service or trade. Until the final product
is delivered to the end customer, it needs to pass many different processes in cooperating
organizations. As a result, there a lot of business-to-business (B2B) interactions with cross-enterprise transactions, often including cross-border communications and sometimes even
cross-industry trades with technological and often cultural implications. Especially the interfaces
of supply chain networks are prone to inefficiencies, misunderstandings and delays
due to a lack of standardized B2B transactions, which leads to waste in form of rework,
errors and mistakes. In addition, new customers are hard to find for the manufacturing or
trading company, since potential customers are so far limited to a regional network. The
advantages of extending the customer base still need to be explored by many organizations.
This paper discusses the opportunities by streamlining the communication along supply
chain networks in a general fashion and then describes the application in a B2B automotive
retail business. A concept of a web-based trading platform, which provides a seamless service
for all steps of a convenient and efficient used vehicle remarketing business, is developed. It
includes all phases, like offering and price finding in a comprehensive online platform, which
also covers further activities, such as logistic services, financial transactions, and a mandatory
feedback loop.
The suggested B2B vehicle-trading platform enables a quick turnover of each transaction,
which is analyzed and optimized based on the application of cross-enterprise Value Stream
Management.