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The Supply Chain Of Honda Essay

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From above, the process of Honda’s supply chain in purchasing is very clear. Firstly, the purchasing division of Honda signs a purchase order with the component suppliers and then these suppliers determines the needed raw materials and sends a demand to Honda after receiving the order. The next is that Honda trading classifies these orders into different materials and signs a purchasing order with these raw materials factories. After then these factories send these raw materials to suppliers. Finally, these parts can be produced by suppliers and sent back to Honda so that a new car, for example, can be made by a series of supply chain. 1.2. Global supply chain of Honda for purchasing division 1.2.1. Supplying Distribution The global business of Honda through an organization is divided into six regions and established purchasing functions in each (Honda, 2015). These suppliers are extensively spread over all over the world while the Purchasing Operation is located in Japan to supervise the global purchasing divisions for a same goal (Aaron, 2003). The figure 2 expresses a purchasing network for the supply chain of Honda. Figure 2. Honda’s global purchasing network for supply chain. Reprinted from The SUSTANINABILITY REPORT of Honda website: http://world.honda.com/sustainability/report/pdf/2015/Honda-SR-2015-en-087.pdf It is easy to know from the figure 2 that Honda’s suppliers mainly from the Six big regions, Europe, North America, South America, Asia & Oceania, Japan

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