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  • Supply Chain Management at International Automotive

    In 2008, International Automotive Company (IAC), a German manufacturer of automotive parts, acquired a plant in Reynosa, Mexico. This plant produced various types of motors for power windows, heating, ventilating, air conditioning, and wipers. At the time of acquisition, the plant was showing record losses. Because the acquisition was internally financed, it was crucial to make the plant profitable quickly. After conducting a deep analysis, the company discovered that a lack of proper management in the supply chain system was leading to a large amount of wasted resources. As a result, managers looked for opportunities to save money and facilitate improvements mainly in areas such as packaging, warehousing, and transportation. One of the greatest obstacles involved IAC’s employees, who were falling short in terms of knowledge and motivation.
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  • Supply Chain Management at International Automotive

    Paul Salinas had just finished moving into his new office in Reynosa, Mexico. He closed the door and sat down, taking a moment to remember how his career had started with International Automotive Company. As he was finishing his engineering studies, Salinas had received a job opportunity as a trainee in the summer of 1995. That was in the company's Querétaro plant, in his hometown. This initial position as an administrative assistant was not necessarily exciting but he held on, knowing there was great potential for him to build his career within the company. During this time, Salinas was trained internally (six months of initial training followed by several specific training sessions per year) and sent to the company's headquarters in Germany before spending some time in the plant in Detroit as well. In Germany, he received a six months long training, which was followed by annual training sessions that lasted several weeks each time. Training in Detroit took places about three times a year, and lasted a few weeks at a time as well. He was familiarized with the technical and business aspects of running a manufacturing plant as he moved from promotion to promotion, and had held the position of operations manager for five years in Querétaro before moving to Reynosa. Apart from his remarkable career track, Salinas had the advantage of speaking Spanish, English and German. All of these qualities made him the perfect candidate to rebuild the entire supply chain in the plant that the company had just acquired from Motor Company II in Reynosa, Mexico in 2009.
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