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Article
Publication date: 4 August 2021

Balakrishnan A.S. and Usha Ramanathan

The purpose of this paper is to examine the role of digital supply chain (DSC) technologies in automotive supply chain resilience (SCR) practices to improve the supply chain

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Abstract

Purpose

The purpose of this paper is to examine the role of digital supply chain (DSC) technologies in automotive supply chain resilience (SCR) practices to improve the supply chain performance (SC-Perf.) objectives of companies operating in the automotive industry. This study also compares the results of the associated SC-Perf objectives before and after the COVID-19 pandemic outbreak lockdown situation.

Design/methodology/approach

The authors undertook in-depth empirical research using a questionnaire survey to explore the performance of automotive supply chains. The sample for this study consisted of practitioners from supply chain entities such as automotive original equipment manufacturers, Tier-1 component manufacturers and lead logistics providers in Asia-Pacific (AP) emerging markets. Research questions, framework and hypotheses were developed using the literature review.

Findings

The research outcome from analysis of the data the authors collected from an emerging market context, specifically the automotive sector, emphasizes the role of DSC technologies and encourages the firm’s SCR practices which, in turn, supports the SC-Perf objectives. The DSC technologies competency moderates the SCR and SC-Perf objectives relation, and the moderation effect is higher for post-COVID-19 pandemic outbreak lockdown situation than at prior state.

Research limitations/implications

The scope of the study is restricted to the automotive firms in the AP region. The data were collected from a representative sample of the population through a questionnaire survey. The small size of the sample incurs a certain level of subjectivity.

Practical implications

This research provides practical insights for practitioners and academicians on DSC technologies’ influence in SCR practices to improve the firm’s SC-Perf. This research shares the literature insights on use of DSC technologies across the sector to allow the automotive firm to reassess the existing operational practices.

Originality/value

The paper adds insights on introducing or implementing DSC technologies across AP automotive firms to increase the operations’ performance by improving SCR practices and sustainability.

Details

Supply Chain Management: An International Journal, vol. 26 no. 6
Type: Research Article
ISSN: 1359-8546

Keywords

Open Access
Article
Publication date: 30 September 2021

Sung-Ho Shin and Soo-Yong Shin

Global value changes continued to expand until the late 2000s. On the other hand, regional value chains have formed around major regional hubs due to the expansion of domestic…

Abstract

Global value changes continued to expand until the late 2000s. On the other hand, regional value chains have formed around major regional hubs due to the expansion of domestic demand in emerging economies, such as China, and strengthened trade protectionism since the global financial crisis. Such changes lead to the reorganisation of value chains, focusing on domestic markets (reshoring) or neighbouring countries (nearshoring). In particular, the importance of supply chain risk management has been highlighted following disruptions to the supply network due to the COVID-19 outbreak in December 2019. In this regard, major countries such as the USA and the EU are rapidly shifting to regional value chains for stable and sustainable production, rather than primarily aiming for production efficiency targeted at reducing costs. Industries in particular are more exposed to such supply chain risks under the existing structure and it now has become extremely important for businesses to take reaction to such risks. This is especially important for major industries in a country such as automobile or semiconductor manufacturing industries in South Korea. The aim of this study, therefore, is to establish the basis for the simultaneous growth of ports and linked industries by examining the existing structure of the global value chain for the automotive industry, which has a strong presence in South Korea’s domestic economy. In this regard, this research carries out a supply chain analysis focusing on the imports and exports of automotive parts. It also analyses the current structural risks and suggests risk management measures to secure a stable supply chain.

Details

Journal of International Logistics and Trade, vol. 19 no. 3
Type: Research Article
ISSN: 1738-2122

Keywords

Article
Publication date: 20 June 2022

Balakrishnan Adhi Santharm and Usha Ramanathan

The COVID-19 pandemic has impacted all manufacturing sectors from basic products to luxury goods including the automobile industry. This has necessitated a new line of research on…

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Abstract

Purpose

The COVID-19 pandemic has impacted all manufacturing sectors from basic products to luxury goods including the automobile industry. This has necessitated a new line of research on competency building, transparency, and sustainability in automotive supply chains. In this study, the authors examine the competencies required to improve the automotive supply chain routine operations to address the parts supply crisis from multitier suppliers in the post-COVID-19 environment. The authors also propose a list of competencies required in the automotive supply chains to deploy the transparency for sustainability (TfS) framework on a long-term basis.

Design/methodology/approach

The authors have adapted a cross-case study process using intervention-based research and a design science approach for use in this study and used multiple sources for data collection such as published literature, operational experience, and critical opinions of original equipment manufacturer representatives. The research design includes interviews with global OEMs practitioners as one of the relevant sources of information.

Findings

The impact of the COVID-19 pandemic outbreak on automotive manufacturing operations and global supply chains is unprecedented. The TfS framework cycle has been validated using the real-world semiconductor supply crisis which deals with multitier sustainable supply chain management (MTSSCM), and the authors found that there are competency gaps when compared with existing literature. The list of key competencies identified along with the formulation of design propositions to facilitate both the supply crisis and collaboration among automotive firms to enhance their business performance were also presented.

Research limitations/implications

The COVID-19 pandemic is impacting the automobile sector significantly. This situation has created many opportunities and obstacles, but this paper only considers the automotive semi-conductor shortage situation, which may be resolved in the near future when there are more installed capacities. Therefore, it is unclear whether the proposed responses will result in long-term solutions. Further adjustments may be needed to revisit the TfS framework. The research paper only addresses the automotive side of the current supply crisis, but more sustainability issues may arise in the future, which need to be dealt with separately.

Practical implications

Research findings may prove particularly interesting to global automotive vehicle manufacturers, suppliers and policy makers who are seeking to understand multitier supply networks to resolve the current challenges associated with the post-COVID-19 pandemic situation.

Originality/value

In addition to contributing to developing competency requirements, this study enhances the evolving research stream of MTSSCM by linking it to wider research applications of intervention-based research coupled with design science.

Details

International Journal of Operations & Production Management, vol. 42 no. 7
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 28 October 2000

Richard Senter and Michael S. Flynn

The automotive industry in North America is experiencing a period of far‐reaching reorganization. Part of that change is in the automotive supply chain, including firms in the…

339

Abstract

The automotive industry in North America is experiencing a period of far‐reaching reorganization. Part of that change is in the automotive supply chain, including firms in the industry, such as Ford or General Motors, that assemble the vehicles and firms that are their suppliers. The particular emphasis in the research reported below is on the new relationships among these firms in the automotive supply chain. Some of the data come from in‐depth interviews with twenty‐six senior executives in North American automotive companies, from a survey of 175 firms in the North American automotive industry, and from sessions with an advisory board of representatives of leading industry companies. Additional data derive from historical accounts of the industry. This paper briefly summarizes the differentiation of the supply chain into four types of firms, and the reallocation of tasks within the supply chain. This has meant a transfer of responsibilities from the assemblers (such as Ford) to various kinds of suppliers, and a resultant shift in the system of responsibility and authority in the supply chain. The paper then explores in detail changes in the nature of relationships among firms in the supply chain from a type termed the market model to a type termed the commitment model. Additional topics include changes in the way relationships among firms are initiated and reasons for the new type of relationship. The changes are interpreted in terms of both firm‐level and industry level‐factors. The changes and their underlying causes allow certain predictions: the process of change to the new type of relationship will continue at least until 2005; and it is uncertain how far the new mode of relationship, the commitment model, will extend through the supply chain.

Details

American Journal of Business, vol. 15 no. 2
Type: Research Article
ISSN: 1935-5181

Keywords

Open Access
Article
Publication date: 12 February 2019

Carlos Sakuramoto, Luiz Carlos Di Serio and Alexandre de Vicente Bittar

There is a great reliance on fiscal incentives to sustain the automotive industry competitiveness due to several structural problems, among them the inefficiency of the supply

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Abstract

Purpose

There is a great reliance on fiscal incentives to sustain the automotive industry competitiveness due to several structural problems, among them the inefficiency of the supply chain. This paper aims to compare the supply chain structure of traditional automotive industry with the supply chains from South Korea and China. Based on strategic decision and transaction cost theory, this comparison seeks to exploit the factors that led to the inefficiency of automotive supply chains.

Design/methodology/approach

The authors used a qualitative approach and applied a multi-method research. They conducted semi-structured interviews with six executives from automakers representing the selected countries, carried individual meetings during one workshop and used secondary data from several sources.

Findings

Concepts identified in the research such as reliability, supply chain governance and automaker competencies led the authors to propose that the traditional automakers have higher transaction costs when compared to the new automakers due to the horizontal structure of their supply chain. While new competitors have vertical upstream supply chains, which indicates better profitability, traditional automotive industry is horizontal, depends on fewer Tier 1 suppliers and is disconnected from Tier 2, impacting negatively in the transaction costs and supply chain management.

Practical implications

This study suggests that automotive executives rethink the current upstream supply chain model by identifying the competencies required for their current and future competitiveness and implementing a vertical integration of these competencies.

Originality/value

This research exploited the inefficiency of supply chain as one of the explanations for the low competitiveness of the national automotive industry.

Details

RAUSP Management Journal, vol. 54 no. 2
Type: Research Article
ISSN: 2531-0488

Keywords

Article
Publication date: 26 June 2019

Mia Delic, Daniel R. Eyers and Josip Mikulic

Additive Manufacturing offers much potential for industry, but at the same time is likely to have a significant impact on supply chain theory and practice. To-date there has been…

2870

Abstract

Purpose

Additive Manufacturing offers much potential for industry, but at the same time is likely to have a significant impact on supply chain theory and practice. To-date there has been limited empirical work exploring the effect of Additive Manufacturing, and this study aims to provide a detailed appraisal of how supply chain integration, supply chain performance and firm performance may be affected by the adoption of Additive Manufacturing. These are critical factors for supply chain management, but have received little quantified attention to date.

Design/methodology/approach

A theoretical model is developed from a detailed review of the literature, from which a quantitative analysis is performed. Using data collected from 124 automotive manufacturers in European Union and the partial least square- structural equation modeling method, the research examines the relationships among different dimensions of supply chain integration, supply chain performance and firm performance from the perspective of Additive Manufacturing adoption.

Findings

The findings indicate that Additive Manufacturing adoption positively influences supply chain performance and as a consequence, firm performance. In addition, supporting the resource-based view perspective, the results show a positive indirect effect of supply chain integration on the supply chain and firm performance improvements, enabled by the Additive Manufacturing adoption. This helps to explain some inconsistent findings in previous research regarding the impacts of supply chain integration on performance.

Research limitations/implications

The results of this study support the view that Additive Manufacturing can make a positive contribution to the supply chain, but this is not achieved solely by the technologies alone. Many of the traditional activities of supply chain management (i.e. integration) are still needed when using Additive Manufacturing, and research needs to understand whether Additive Manufacturing adoption will necessitate changes to the way these traditional activities are undertaken. Building on the findings of the current study, much more work is therefore needed to understand how operations within the supply chain may be changed, and how this may affect the integration and performance of the supply chain.

Practical implications

This study provides quantitative evidence to show that the adoption of Additive Manufacturing has the potential to affect both firm and supply chain performance. This is significant for those companies considering the adoption of Additive Manufacturing, and may serve as a valuable insight in the strategic decision-making process. For those already using Additive Manufacturing, this study serves to underline the potential for firm performance to be influenced, by focusing on improvements to their production strategies and policies.

Originality/value

This study provides an initial insight into some fundamental supply chain concepts within an Additive Manufacturing context, which have received very little research attention. It develops a novel conceptual model, and through a large-scale industry survey provides quantified evidence of the impact of Additive Manufacturing on the supply chain. To date, much of the supply chain research is exploratory and qualitative; the quantitative evidence presented in this work, therefore, makes an important and original contribution to both research and practice.

Details

Supply Chain Management: An International Journal, vol. 24 no. 5
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 11 June 2018

Gaurav Goyal, Harsh Vardhan Samalia and Piyush Verma

The purpose of this paper is to investigate the mediating role of process simplification on the relationship between process integration and upstream supply chain flexibility in…

Abstract

Purpose

The purpose of this paper is to investigate the mediating role of process simplification on the relationship between process integration and upstream supply chain flexibility in Indian automotive organizations.

Design/methodology/approach

The three-step mediation analysis was performed using SPSS macro PROCESS to assess the mediating role of process simplification on the relationship between process integration constructs: top management commitment and supplier relationship; and upstream supply chain flexibility.

Findings

The results indicate a complete mediation effect of process simplification between supplier relationship and upstream supply chain flexibility, while partial mediation effect is noticed between top management commitment and upstream supply chain flexibility.

Practical implications

For Indian automotive managers, the study suggests that for improving the upstream supply chain flexibility, organizations must have a strategy towards improving the simplification of supply chain processes by upgrading technology and providing training to their suppliers. This understanding will help the automotive managers to simplify their upstream supply chain processes for gaining competitive positioning and maximizing the organizational profit.

Originality/value

This study has considered the mediating role of process simplification (a relatively less studied variable) specifically in the context of its impact on upstream supply chain flexibility. Also, the presented study explores this role in the Indian automotive domain which further enhances its value for both practitioners and researchers alike.

Details

International Journal of Productivity and Performance Management, vol. 67 no. 5
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 1 September 2022

Rinu Sathyan, Parthiban Palanisamy, Suresh G. and Navin M.

The automotive industry appears to overcome much of its obstacles, despite the constant struggle facing COVID-19. The pandemic has resulted in significant improvements in the…

Abstract

Purpose

The automotive industry appears to overcome much of its obstacles, despite the constant struggle facing COVID-19. The pandemic has resulted in significant improvements in the habits and conduct of consumers. There is an increased preference for personal mobility. In this dynamic environment with unexpected changes and high market rivalry, automotive supply chains focus more on executing responsive strategies with minimum costs. This paper aims to identify and model the drivers to the responsiveness of automotive supply chain.

Design/methodology/approach

Seventeen drivers for supply chain responsiveness have been identified from the extensive literature, expert interview. An integrated methodology of fuzzy decision-making trial and evaluation laboratory–interpretive structural modelling (DEMATEL–ISM) is developed to establish the interrelationship between the drivers. The cause–effect relationship between the drivers was obtained through fuzzy DEMATEL technique, and a hierarchical structure of the drivers was developed using the ISM technique.

Findings

The result of the integrated methodology revealed that strategic decision-making of management, accurate forecasting of demand, advanced manufacturing system in the organisation and data integration tools are the critical drivers.

Research limitations/implications

This study has conceptual and analytical limitations. In this study, a limited number of drivers are examined for supply chain responsiveness. Further research may examine the role of other key performance indicators in the broad field of responsiveness in the automotive supply chain or other industry sectors. Future study can uncover the interrelationships and relative relevance of indicators using advanced multi-criteria decision-making methodologies.

Originality/value

The authors proposed an integrated methodology that will be benefitted to the supply chain practitioners and automotive manufacturers to develop management strategies to improve responsiveness. This study further helps to compare the responsiveness of the supply chain between various automotive manufacturers.

Article
Publication date: 12 February 2018

Christoph Fuchs, Daniel Beck, Bernhard Lienland and Florian Kellner

The purpose of this paper is to explore the impact of information technology (IT) on supply chain performance in the automotive industry. Prior studies that analyzed the impact of…

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Abstract

Purpose

The purpose of this paper is to explore the impact of information technology (IT) on supply chain performance in the automotive industry. Prior studies that analyzed the impact of IT on supply chain performance report results representing the situation of the “average industry.” This research focuses on the automotive industry because of its major importance in many national economies and due to the fact that automotive supply chains do not represent the supply chain of the average industry.

Design/methodology/approach

A research model is proposed to examine the relationships between IT capabilities, supply chain capabilities, and supplier performance. The model divides IT capabilities into functional and data capabilities, and supply chain capabilities into internal process excellence and information sharing. Data have been collected from 343 automotive first-tier suppliers. Structural equation modeling with partial least squares is used to analyze the data.

Findings

The results suggest that functional capabilities have the greatest impact on internal process excellence, which in turn enhances supplier performance. However, frequent and adequate information sharing also contributes significantly to supplier performance. Data capabilities enable supply chain capabilities through their positive impact on functional capabilities.

Practical implications

The findings will help managers to understand the effect of IT implementation on company performance and to decide whether to invest in the expansion of IT capacities.

Originality/value

This research reports the impact of IT on supply chain performance in one of the most important industries in many industrialized countries, and it provides a new perspective on evaluating the contribution of IT on firm performance.

Details

Journal of Enterprise Information Management, vol. 31 no. 1
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 1 July 2006

Kyung‐Hee Jung and Sang‐Kyu Lee

To provide new roles of steel mills with desirable business strategies in the supply chain of automotive steel sheets.

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Abstract

Purpose

To provide new roles of steel mills with desirable business strategies in the supply chain of automotive steel sheets.

Design/methodology/approach

The characteristics of the relationship between automakers and steel mills, which aim to provide different patterns according to regional markets, are classified into the customer‐supplier relations in the regions of North America and Japan. Extended roles of steel mills with expected responsibilities are considered in the automotive supply chain, not just raw material suppliers.

Findings

Provides new procurement programs of automakers, indicating what can be found there for new paradigm of steel suppliers and how new procurement programs can change. Emphasizes the necessity of developing more updated and functional business models of steel mills in the value chain.

Practical implications

Steel mills have to extend their conventional roles to downstream processing in the automotive steel supply chain, in order to maintain cooperative and interdependent relations with OEMs.

Originality/value

This paper fulfils extended roles of automotive steel suppliers in supply chain management and offers collaborative partnerships to steel mills and automakers.

Details

Supply Chain Management: An International Journal, vol. 11 no. 4
Type: Research Article
ISSN: 1359-8546

Keywords

1 – 10 of over 10000