Ferrari’s Supply Chain Is Facing More Demand

Image via Flickr by Axion23

Ferrari is one of the best known high-performance vehicle brands around the world. Customers expect nothing but the best, and Ferrari delivers. That’s why the company has been so successful to date. However, demand for the Ferrari brand in new markets is presenting challenges to its supply chain. Ferrari must produce more vehicles without compromising on quality.

Most customers have to wait about 12 months to receive their custom-built Ferrari vehicle. However, customers in emerging countries like China and the Middle East aren’t accustomed to this long of a wait. And, they aren’t willing to make a commitment to a vehicle that they won’t see for a year. Therefore, Ferrari is ramping up production to meet the new demands of their growing customer base. A one-month turnaround isn’t possible yet, but Ferrari does want to significantly decrease its year-out production schedule.

Fast production has always been a challenge to Ferrari because each vehicle is unique. The personal details and customization are what makes Ferrari a luxury brand. It’s easy to manufacture cars in mass, but not when it comes to the personal details.

Ferrari realized that a new manufacturing setup was necessary to expand their customer base into China and the Middle East. They needed more flexibility, better business software, and a streamlined IT policy to speed up production. They teamed with Infor to create a better strategy. This increased Ferrari’s production speed by 40 percent. They looked at their manufacturing process and found ways to improve it.

If you want to buy a Ferrari, you’ll still have to wait a while before it is delivered to you, but things are speeding up. Ferrari now has the capacity to manufacture 7,000 custom vehicles per year. And, you still get a custom vehicle with all the personal touches you desire.

 

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