Business Assurance Thought and Link of the Day, March 25, 2009: Supply Chains
25th March 2009 by Alex Briggs
Today’s thought and link are related to global supply chains and are from the same source, Bob Ferrari’s blog. Bob is a leading expert on Supply Chain issues. Today’s thought is an excerpt taken from a recent Business Week article via Bob’s blog. Commenting on the approach that Tata, the Indian car manufacturer took in determining the $2,500 price tag for its Nano, Jessie Scanlon, the author, wrote,
Tata didn’t set the price of the Nano by calculating the cost of production and then adding to margin. Rather it set $2500 as the price that it thought customers could pay and then worked back, with the help of partners willing to take on a challenge, to build a $2500 car that would reward all involved with a small profit.