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The South African automotive industry, which is the most significant sector in the South African economy, needs to function efficiently to compete globally. The purpose of this paper is to report on a study that investigated the challenges faced by the South African automotive component manufacturers and their suppliers and provide a structure and identify the dependencies between these challenges.

Interpretive structural modelling (ISM) was adopted to explore the supplier relationship challenges and the dynamics and interlinkages between these challenges. ISM was deemed appropriate, as it is a multi-criterion decision-making technique suited for complex problems and provides an ordered, directional framework.

The findings revealed that advanced communication, rapid change in demand and dependence on a single customer are independent problems but have a lesser feedback loop and do not create instability by ripple effect. Interdependencies, on the other hand, create lesser ripples when tackled.

Findings of this study will be able to guide all the stakeholders: the policymakers and the automotive industry players to target the driving issue which can bring efficiency in the South African automotive supply chain. If the automotive components manufacturers (ACMs) are able to have more than one customer, their reliance on one will decrease and the systems will improve which shall benefit the industry. This methodology can also be used in future for determining the roadmap for complex issues.

The framework presented in this paper provides decision makers with a realistic picture of their situation by providing insight into the interrelationships, ranking them by importance and aiding in creating a roadmap for addressing identified challenges.

Currently, automotive original equipment manufacturers (OEMs) aim at developing Internet‐based methods to redesign their relationships with the suppliers. The majority of the manufacturers believe this to be a possibility to improve the relationships to their suppliers, especially regarding transparent cost‐structures. Suppliers on the other hand are very skeptical about methods in this area. Their fears of rising price pressure and potential losses of know‐how and competitive advantages are high. This article examines how strategic sourcing can be supported by Internet‐based methods. Thus, it tries to answer the question how the relationship between OEMs and suppliers will develop regarding the sourcing of complex material: will the Internet‐based relationships enhance collaboration or increase competition? An empirical study within the German automotive industry shows that the views of suppliers and OEMs differ substantially regarding the benefits and risks of an Internet‐based support of strategic sourcing. Hence, it seems that non‐technological problems are the main obstacles in the transition of these methods. It is evident that suppliers generally fear increased transparency within their structures in many different areas.

The purpose of this paper is twofold: first, to develop a typology of co‐located supplier clusters, such as logistics centres or supplier parks, and second, to evaluate the theoretical perspectives at hand to investigate the co‐location phenomenon.

The research encompasses 28 semi‐structured interviews with key operations executives from vehicle manufacturers, component suppliers and logistics service providers at nine co‐located supplier clusters, the findings of which are triangulated with secondary sources.

The investigation yields two main findings: first, a typology is proposed based on two key dimensions “spatial integration and infrastructure” and “local value‐added”. From a theoretical perspective, the paper further concludes that transaction cost economics is less suited for studying dedicated co‐location, and suggests that future investigations should focus on consolidating the contributions on the spatial dimension of sourcing configurations into a novel theoretical framework.

The study is based on an exploratory research design, investigating a selected number of co‐located supplier clusters only. While the research does not claim to provide a comprehensive survey of co‐located supplier clusters, it proposes a general categorisation that aims to provide a structure currently lacking further research into this phenomenon.

A structured overview of the phenomenon of co‐located supplier clusters is provided, extending the existing morphological debate. Furthermore, the discussion of their theoretical foundations provides novel insights into this phenomenon as well as into the operational implications of value chain modifications in general, with the intention of guiding further research in this area.

In this paper, the management of variety in automobile manufacturing is broadened from simply considering the choice of models, options and parts to include strategic issues in sourcing and logistics systems. Some of the major cost elements associated with varietal increase are identified, leading into a discussion of how logistics system redesign can reduce or, indeed, eliminate the unwanted impacts of varietal increase. In this context, a “Rule of Three” is developed to assist in the effective management of variety in automotive logistics and elsewhere.

This study intends to explore the determinants of Chinese oil demand and to build a short‐ and long‐run model.

The study uses the Engle‐Granger two‐stage cointegration method to create a dynamic short‐run model. Data is taken from both international data sources and the Chinese authorities themselves.

The research largely confirms current research in the area. The error correction model finds that only vehicle numbers and real GDP are determinants of the demand in the short‐run. The model also shows that there is a fairly slow adjustment from the short‐run to the long‐run model.

The model also shows that there is a fairly slow adjustment from the short‐run to the long‐run model. Both models find that structural breaks exist in the data and dummy variables were significant in allowing for the regime change.

The policy implications not only for China but the whole world are clear. China's demand for oil is growing at a rate that will be difficult to sustain. The world's refineries are currently trying to work at capacity as far as possible to take advantage of the high‐oil prices, which continue to rise.

This paper provides ongoing confirmation of the importance of China's oil consumption on world markets.

The purpose of this paper is to define the local integration rate and how it is calculated to assess its relevance as a national performance indicator for the Moroccan automotive industry.

The research methodology first followed a systematic review approach through the analysis of published research articles and academic works. This study then followed a qualitative approach based on semi-structured interviews with various actors in the Moroccan automotive industry. Finally, the findings of this work were reinforced by a case study to analyze the supply chain of a locally produced vehicle.

The results indicate that the local integration rate as calculated today overestimates the performance of the automotive industry and does not systematically guarantee a significant creation of value added.

Due to the confidentiality of the data in terms of turnover, payroll and purchase prices as well as the large number of suppliers in the different supply chains of the car manufacturer, the case study focused on only one of the six existing ecosystems.

On the basis of research work on the Moroccan automotive industry as well as interviews with various actors, the local integration rate is unanimously considered as a viable performance indicator. This study has not only led us to the method of calculating this rate by the Ministry of Industry but also demonstrated its limitations while proposing a new method of calculation to increase the value added.

The purpose of this paper is to provide an explanation and set out the reasons for the change in supply strategy from sole sourcing to split sourcing at an automotive assembly plant. In that context, this paper highlights the advantages of split sourcing over earlier strategies.

The information on which this paper is based comes chiefly from two sets of qualitative interviews staged in 1996 and 2003 at automotive supplier plants in northern Spain. Particular attention is paid to suppliers working with sequenced deliveries located close to the Volkswagen plant in Navarre. The vehicle model manufactured changes between the interviews. A comparison of the two pieces of fieldwork reveals changes in the plant's supply strategy.

A comparison between the supply strategies of a plant for two successive, distinct models provides empirical support for the idea that supply strategies evolve. The need is also demonstrated for the first time to consider individual plants expressly, since significant cost savings can be made at this level at two key times: when switching models and during model life‐times. These cost savings depend clearly on the type of buyer‐supplier relationship established at plant level.

The most significant conclusion for practitioners concerns the need to design a supply strategy from a dynamic approach that specifically considers the plant level.

The basic contribution of this paper is that it examines changes over time in outsourcing decisions in the automotive industry by incorporating the viewpoint of individual plants. Following this approach, the evolution from sole sourcing to split sourcing is described and interpreted. The paper also stresses the need to analyse procurement strategies in evolutionary terms (i.e. as being reconfigured in line with experience).

The purpose of this paper is to discuss how the incentive from transaction cost can be beneficial due to the selection and implementation of the purchasing strategy under different scenarios in the value chain, including the automotive assembly sector and auto parts sector. Furthermore, it aims to investigate how to reach break even point between transaction cost and agency cost and to further achieve the goal of cost minimization.

This is empirical analysis of variables constructed from transaction cost theory and data obtained from two famous motor companies in Taiwan automotive industry. This study adopts the probit model and tobit regression model to test and discuss the parameters in the model to deeply realize the influence of transaction cost variables towards purchasing strategy.

The findings prove the situation of multiple sourcing in supplying auto parts and demonstrate that the dimensions in transaction cost are truly important factors to affect the purchasing strategies. In addition, the empirical results show the explanatory capabilities of variables are very significant in monopoly power, steering system, electro mechanism, and other parts systems.

The awareness on transaction cost are beneficial to partner selection of automotive companies in Taiwan. These findings also improve the quality of purchasing strategy in Taiwan automotive industry.

This study explores the variables of transaction cost influencing purchasing strategies. In addition, the knowledge on transaction cost towards purchasing strategy helps companies enhance the quality in future purchasing strategy and select their suppliers.

Strategic sourcing and supply risk management have become interesting topics of research in the recent years. Automotive industry experts are increasingly focussing on improving the supply efficiency and performance towards gaining sustainable competitive advantage. This study aims to classify, through an exhaustive review of past literature, the various enablers and barriers of strategic sourcing risk management (SSRM) and use them to identify the problems in the automobile sector.

For the purpose of this research, responses were collected through structured questionnaire from respondents belonging to senior management cadre in the industry. Factor analysis and force field analysis tools have been used for analysis.

Through independent exploratory factor analysis (EFA), four SSRM enablers, namely, supplier risk assessment, data sharing in supply network, partnership with supplier and supply flexibility, were identified. Similarly EFA revealed four SSRM barriers, namely, cost focus, ad hoc or poor planning, data security/privy breaches and hard visualization of SSRM benefits. Through a force field analysis, it was found out that the barriers had a higher impact on the SSRM initiatives than enablers.

The research suggests the ways how managers can reduce the impact of barriers and increase the enabling forces.

This paper enumerates the barriers and enablers together on the same platform to prioritize and evolve strategies to overpower the barriers and strengthen the enablers.

The paper provides an overview of research published in the innovation and operations management (IOM) literature on 15 methods for cost management in new product development, and it provides a comparison to an earlier review of the management accounting (MA) literature (Wouters & Morales, 2014).

This structured literature search covers papers published in 23 journals in IOM in the period 1990–2014.

The search yielded a sample of 208 unique papers with 275 results (one paper could refer to multiple cost management methods). The top 3 methods are modular design, component commonality, and product platforms, with 115 results (42%) together. In the MA literature, these three methods accounted for 29%, but target costing was the most researched cost management method by far (26%). Simulation is the most frequently used research method in the IOM literature, whereas this was averagely used in the MA literature; qualitative studies were the most frequently used research method in the MA literature, whereas this was averagely used in the IOM literature. We found a lot of papers presenting practical approaches or decision models as a further development of a particular cost management method, which is a clear difference from the MA literature.

This review focused on the same cost management methods, and future research could also consider other cost management methods which are likely to be more important in the IOM literature compared to the MA literature. Future research could also investigate innovative cost management practices in more detail through longitudinal case studies.

This review of research on methods for cost management published outside the MA literature provides an overview for MA researchers. It highlights key differences between both literatures in their research of the same cost management methods.