Introduction Value chain in a company consists of activities that aim to take in inputs and convert them into outputs that are of high quality in order to cater for the needs of the end consumer. Value chain activities are important to an organization because they add value and quality to the end product so that a consumer can use the good/service and obtain satisfaction (Kourdi 2009, 133). Value chain activities are often conducted by numerous departments which all work together to produce quality products and services. Some of the departments that work together in order to add value to raw materials/goods as they move down the industry value chain include; the exploration department, manufacturing department, inbound and outbound distribution department, sales and marketing department, after sales department and the administration department (Worthington & Britton 2009, 45-50). The need for creating value along the distribution chain has forced supply chain management managers to integrate planning and use proper strategies to ensure that raw materials, work in progress and finished goods reach where they are needed at the right time and in good quality (Wisner et al 2008, 22 ). Additionally, supply chain experts need to develop contingent strategies and tactics that will alow their distribution networks obtain high degrees of flexibility as goods move either forward or backwards. The company The Automobile Industry is a good example of an industry that uses supply chain management activities to add value to vehicles and automobile parts and come up with a diversified range of products that can be used by various consumers in a wide range of industries (na, 2011). The level of investment and capital required to run activities in the automobile industry is quite high and it thus becomes necessary for careful planning to be incorporated so that goods and services can flow from vendors, the factory floors where cars are assembled to automobile showrooms around the world. Honda is an Automobile manufacturing company that operates in over 150 countries and produces close to14 million internal combustible engines annually making it the world’s largest internal combustible engine manufacturer and motor cycle manufacturer. The company has been in existence for over 60 years and has built one of the largest global networks in the automobile industry and is now the worlds 6 th largest automobile maker. The company currently has over 180,000 employees and made over $ 120billion in gross revenues in 2010, the company’s expansion and operations have been able to run smoothly due to the abundant assets and owners’ equity that the company has to finance it expansion activities (Andrew 2010, 91-94). Structure of the Organization The company has its headquarters in Minato, Tokyo, Japan, which coordinates the company’s activities with its branches and car dealerships. The Headquarters serves as the central decision maker with all leader functional units being located in Tokyo. The company uses regional heads who are well experienced business executives to communicate the intentions of the corporate heads and coordinate all supply chain activities where the company has ves