Strategic supply chain management issues in the automotive industry: an Australian perspective

The automotive manufacturing industry is an extremely competitive one. Many companies are focusing on their supply chains for sources of competitive advantage. This paper presents the findings of an exploratory study that examined contemporary issues related to supply chains in the Australian automotive manufacturing industry. Data from interviews with managers from vehicle manufacturers, component suppliers, peak industry bodies and government agencies enabled the articulation of 10 key issues. These issues were validated as being relevant to the industry by another group of managers from the industry. Review of these 10 issues showed that the relationships between the parties in supply chains are complex, and despite the success of the industry, there are a number of structural weaknesses. These issues, when taken individually, pose significant risks to the industry. When considered collectively, these risks are magnified several fold. This paper also presents research questions in the form of formal propositions associated with the 10 issues that need to be rigorously tested in order to assess the long-term viability and success of the industry. The issues that are raised can also be relevant to other industries with similar supply chain dynamics.     

Risk management in the automotive supply chain: an exploratory study in Brazil

The main objective of this study was to identify the main characteristics of risk management in the automotive supply chain in Brazil, considering companies in the first and second tiers. This objective was achieved through the proposition of three hypotheses that were tested based on a survey of 211 auto parts producers scattered throughout the country, from which 77 completed forms were received. This research enabled us to conclude that the risks perceived in tier 2 are higher than those observed in tier 1. Also, it was possible to verify that the performance of companies in tier 2 (higher risk) is lower than those in tier 1. Contrary to what was observed in the literature, this research could not find evidence to confirm that risk management tools are prioritized to reduce the risk of companies in the supply chain. Therefore, this research contributes to both theory and practice: this is the first study that performs an analysis of risk management in supply chains with tier 1 and 2 companies in the Brazilian automotive industry, becoming an important complement to recent studies on this topic. For practitioners and business executives who manage risks in automotive supply chains in Brazil, this paper shows the reality of the issue in first- and second-tier companies, which can provide them with important contexts for their decision making in the day-to-day business of the automotive sector.     

The impact of total quality management on supply chain management and firm's supply performance

This research investigates the relationships among total quality management practices (TQMP), supply chain management practices (SCMP) and firm's supply performance (FSP) in the automotive industry in Thailand. The measurement instruments for SCMP, TQMP and FSP were developed based on an extensive literature review and verified by experts, pilot test and various statistical techniques to ensure reliability and validity in structural equation modeling constructs. The hypothesized model was tested through a path analysis. Qualitative case studies of two large first-tier automotive suppliers were conducted to obtain more in-depth information. We found that the set of SCMP, TQMP and FSP measures are reliable and valid for Thailand's automotive industry. TQMP not only has a significant direct positive impact on SCMP and on FSP but also a significant indirect positive impact on FSP through SCMP.     

Integration of global manufacturing networks and supply chains: a cross case comparison of six global automotive manufacturers

Striving for new business opportunities automotive original equipment manufacturers established overseas plants in emerging markets and global manufacturing networks evolved. In this regard so-called knocked down supply chains have been the key for the establishment of successful overseas operations. Importing all parts required from the original plants in form of easy to be handled kits secures a high product quality and stable supply despite lacking qualification of local workforce and supplier bases. Over time the overseas plants and global manufacturing networks have matured by increasingly taking over value adding processes and integrating local suppliers. However, the supply chain structure and management have not been adapted accordingly and still comprise high inventory buffers and lead times. There is little research on the integrated design of global manufacturing networks and knocked down supply chains. This research aims to contribute to close this research gap by means of a cross-case study with six globally operating OEMs investigating the fit of knocked down supply chains and global manufacturing networks. On the basis of transaction cost theory, we develop an integrated framework to align global manufacturing networks and knocked down supply chain design that can serve as guideline to open logistics performance and cost potentials.     

A survey of semiconductor supply chain models Part II: demand planning,inventory management,and capacity planning

Part I of this three-part series described semiconductor supply chains from the decision-making and functional perspectives, using this as a framework to review the industrial engineering and operations research literature on the problems arising in these supply chains. Part I then reviewed the literature on Strategic Network Design, supply chain coordination, sustainability and simulation-based decision support. This paper, Part II, reviews the areas of Demand Planning, Inventory Management and Capacity Planning in semiconductor supply chains. Part III concludes the series by discussing models to support Master Planning, Production Planning and Demand Fulfilment in this industry.     

Impacts of RFID implementation on cost structure in networked manufacturing

Radio frequency identification (RFID) presents the key innovative solution to automatically capture and track the movement of material items throughout an entire supply chain. In this article, we explore influences of RFID technology implementation on cost and profit efficiencies. For this purpose a mathematical model of supply chain cost structure and functions was created to analyse the impacts. The model, which has also been verified through a case study approach, is aimed to examine the economical impact of RFID implementation at an automotive original equipment manufacturer and its suppliers. To analyse the impact of the traceability system using RFID technology, a cost reduction parameter will be used. Since in automotive supply chains the functional dependence of individual parts is changing in the upstream and downstream supply chain, only certain parts will be calculated with their complete functions and relations.     

A study on investments in the big data-driven supply chain,performance measures and organisational performance in Indian retail 4.0 context

The use of digital technologies such as ‘internet of things’ and ‘big data analytics’ have transformed the traditional retail supply chains into data-driven retail supply chains referred to as ‘Retail 4.0.’ These big data-driven retail supply chains have the advantage of providing superior products and services and enhance the customers shopping experience. The retailing industry in India is highly competitive and eager to transform into the environment of retail 4.0. The literature on big data in the supply chain has mainly focused on the applications in manufacturing industries and therefore needs to be further investigated on how the big data-driven retail supply chains influence the supply chain performance. Therefore, this study investigates how the retailing 4.0 context in India is influencing the existing supply chain performance measures and what effect it has on the organisational performance. The findings of the study provide valuable insights for retail supply chain practitioners on planning BDA investments. Based on a survey of 380 respondents selected from retail organisations in India, this study uses governance structure as the moderating variable. Implications for managers and future research possibilities are presented.     

汽车行业供应链管理文化——美国、日本和中国的比较

在文化对比研究的基础上,结合现有的汽车行业供应链管理理论,主要比较了美国、日本和中国三种不同的文化背景对各自管理价值观及管理模式发生的影响,探讨了不同的文化背景对汽车供应链凝聚力、领导方式、质量与劳动力成本以及结构稳定性等方面有何影响,以及最终对汽车供应链管理模式发生的影响.     

Blockchain in global supply chains and cross border trade: a critical synthesis of the state-of-the-art,challenges and opportunities

Blockchain possesses the potential of transforming global supply chain management. Gartner predicts that blockchain could be able to track $2?T of goods and services in their movement across the globe by 2023, and blockchain will be a more than $3 trillion business by 2030. Nowadays, a growing number of blockchain initiatives are disrupting traditional business models in each sector. In this paper, we provide a timely and holistic overview of the state-of-the-art, challenges, gaps and opportunities in global supply chain and trade operations for both the private sector and governmental agencies, by synthesising a wide range of resources from business leaders, global international organisations, leading supply chain consulting firms, research articles, trade magazines and conferences. We then identify collaborative schema and future research directions for industry, government, and academia to jointly work together in ensuring that the full potential of blockchain is unleashed amidst the socioeconomic, geopolitical and technological disruptions that global supply chains and trade are facing.     

Selection of Packaging Systems in Supply Chains from a Sustainability Perspective: The Case of Volvo

The purpose of this article is to develop an evaluation model for the selection of packaging systems in supply chains from a sustainability perspective. A theoretical evaluation model for comparing cost efficiency and the environmental impact of packaging systems in supply chains are developed from literature. The model is tested in a case study of a supply chain involving Volvo Car Corporation and Volvo Logistics Corporation, comparing the use of newly developed, one‐way packaging with the sustainability of returnable packaging. The model compares the environmental and economic impacts of two packaging systems in a specific supply chain. The criteria used in the model are (i) packaging fill rate, (ii) packaging material, (iii) transport, (iv) material handling, (v) waste handling and (vi) administration. In the case study, the one‐way packaging resulted in fewer economic and environmental impacts, thereby indicating the importance for companies to question their packaging systems. The model has been tested on one component in a case study. It provides a comparison of the packaging choices included using comparative, but not absolute, figures for the economic and environmental impacts. Managers can use the model to compare packaging systems for component supply and determine the most sustainable packaging from environmental and economic perspectives. The case study indicated that the returnable packaging system commonly used in the automotive industry is not always preferable in terms of sustainability. The article fulfils the need to evaluate the impact of packaging systems on supply chain sustainability in terms of economic and environmental criteria. Copyright © 2012 John Wiley & Sons, Ltd.     

Circular supply chains in emerging economies – a comparative study of packaging recovery ecosystems in China and Brazil

This paper provides a circular supply chain perspective of packaging recovery ecosystems being implemented by Tetra Pak, a prime global player in the food packaging industry, in two major emerging economies: China and Brazil. The circular supply chain archetype considered in the research allowed a consistent comparative analysis of Tetra Pak's circular supply chains in both countries. Through a case study approach, the research provides theoretical propositions and learning points that are valuable for academics and practitioners interested in the Chinese and Brazilian markets as well as in the supply chains supporting recovery ecosystems in the packaging industry. In particular, the distinct environments in the Chinese and Brazilian markets render Tetra Pak opportunities to design circular supply chains in different ways showing adaptation and learning to local market characteristics. The industrial perspectives from these emerging economies add to the contributions offered in the paper. Overall, the conceptual considerations and practical recommendations presented in the paper provide useful insights for the development of further studies and implementation of industrial practices advocated by the circular economy.     

Aerial Bots in the Supply Chain: A New Ally to Combat COVID-19

The rapid global spread of COVID-19 has caused disruptions in various supply chains and people's lives. At the same time, it has paved the way for drone technology (Aerial bots). With the countries gone into lockdown for an unspecified time, it is self-evident that people will run out of food, medicine, and other essentials because of the middleman's unavailability to move products from supply to demand point. Lack of medical infrastructure and distant testing laboratories is another challenge faced by the countries, which result in a delayed testing report leading to delay in medical treatment—such critical problems arising in the fight against COVID-19 highlight the need for improving the efficiency of supply chains. Recently used for commercial purposes, drone technology has already proved its utility in inventory and logistics management. Therefore, we argue that drones could be a viable option to improve the efficiency and effectiveness of the supply chains working for humanitarian aid to combat COVID-19. Specifically, the focus is on food, administrative, and healthcare supply chains that are the core to combat the pandemic. Moreover, in this article, we highlight various present and future application areas for drone technology, which could pave the way for future research and industry applications.     

A survey of semiconductor supply chain models part I: semiconductor supply chains,strategic network design,and supply chain simulation

Supply chain management issues have become increasingly important to the semiconductor industry over the last two decades due to the global distribution of facilities and increasing numbers of firms specialising in particular stages. This series of three papers reviews the literature on modelling and analysis of the larger semiconductor supply chain. After describing the structure of semiconductor supply chains to provide context for the research efforts, we propose a classification scheme for the relevant literature. The remainder of this paper (Part I) then focuses on Strategic Network Design models for this industry, supply chain coordination through contracting and semiconductor supply chain simulation. Part II discusses Demand Planning, Inventory Management and Capacity Planning, while Part III addresses Master Planning, Production Planning and Demand Fulfilment.     

铝合金汽车板性能及其应用

深入讨论了预处理工艺的影响并说明了该工艺在保证铝合金汽车板使用性能的重要性。介绍了铝合金汽车板在汽车上的典型应用。基于笔者认识和目前的研究进展,提出了汽车用铝合金汽车板的重点研发内容,降低成本和价格,做好应用研究是扩大铝合金汽车板在汽车上应用的重要工作。     

Magnesium – der Zukunftswerkstoff für die Automobilindustrie?

Magnesium – future material for automotive industry? Magnesium alloys show a very high potential in automotive applications as constructive metal, whereas the main focus lies on die cast parts. Electronic industry is the major commercial consumer for die castings besides the automobile industry. Room temperature applications like steering wheels and frame components in cars as well as mobile phone‐ or notebook housings are well established. These castings are produced with AZ‐ or AM‐magnesium alloys, which show good room temperature properties and a good castability. The great alloy development challenge in extending the use of magnesium cast alloys are application for higher temperatures. The application in powertrain components is considered to be the benchmark here. Besides alloy development there are also further research activities in development of casting processes. Semi‐solid processes like New‐Rheocasting (NRC), Thoxomolding ? or Thixocasting (TC) are adapted to the requirements of newly developed alloys. Not only cast alloys but also magnesium wrought alloys have moved to the centre of interest in the last decade. Alloy development for improving the formability on the one hand as well as process development in extrusion or rolling has to be done in order to find optimum parameters for deforming magnesium alloys properly.     

The German connection: shifting hegemony in the political economy of the South African automotive industry

Most value chain analyses remain at an abstract level, underplayingpolitical economy issues and the importance of local context.The paper analyses the manner in which global automotive forces(the dominance of the German assemblers and their multinationalcorporation first-tier suppliers) combine with local institutionalinfluences (the government’s automotive industrial policy)to drive, shape, and restructure the trajectory of the SouthAfrican automotive industry under the hegemony of the ‘Germanconnection’. It shows ‘how’ and ‘why’the German corporations, unlike their American and Japanesecounterparts, were able to successfully integrate their globalvalue chains with local institutional and policy conditionsand reap the benefits. Its conclusions both add to a generalunderstanding of how governance (power, command, control) operateswithin producer-driven value chains and illuminate the politicaleconomy dynamics of German control underpinning the South Africanautomotive industry.     

Dynamic supply chain decisions based on networked sensor data: an application in the chilled food retail chain

With large volume of product flows and complex supply chain processes, more data than ever before is being generated and collected in supply chains through various tracking and sensory technologies. The purpose of this study is to show a potential scenario of using a prototype tracking tool that facilitate the utilisation of sensor data, which is often unstructured and enormous in nature, to support supply chain decisions. The research investigates the potential benefits of the chilled food chain management innovation through sensor data driven pricing decisions. Data generated and recorded through the sensor network are used to predict the remaining shelf-life of perishable foods. Numerical analysis is conducted to examine the benefit of proposed approach under various operational situations and product features. The research findings demonstrate a way of modelling pricing and potential of performance improvement in chilled food chains to provide a vision of smooth transfer and implementation of the sensor data driven supply chain management. The research finding would encourage firms in the food industry to explore innovation opportunities from big data and develop proper data driven strategies to improve their competitiveness.     

Assessing the economic and environmental impact of remanufacturing: a decision support tool for OEM suppliers

The circular economy is often presented as a solution for companies to increase the sustainability of their business. In many situations where suppliers produce subassemblies or modules for OEMs in a B2B context, dependency on their clients limits their options for profitable closed-loop supply chains. In this paper, we develop a simple tool suppliers can use to quickly assess whether remanufacturing is economic and environmentally attractive compared to producing new components. We derive optimal acquisition and reuse quantities that minimise total costs. Based on our analysis with a supplier in the automotive industry, we find that used core prices and remanufacturing yield rates have a large impact while an optimised design for remanufacturing can only marginally improve the situation. The tool is applicable to a wide variety of suppliers and industries that remanufacture their modules or subassemblies, or are exploring the option to engage in remanufacturing operations.     

Framework for flexibility in dynamic supply chain management

Effective Supply Chain Management (SCM) is a pivotal issue in the dynamically changing business environment. Dynamic SCM requires integrated decision-making amongst autonomous chain partners with effective decision information synchronization amongst them. By exploiting flexibility in supply chain structures, better performance can be achieved. Similarly, by judiciously employing decision flexibility and the associated dynamic control amongst autonomous supply chain nodes, many improvements are possible. The paper presents a study on the role of different flexibility options (i.e. no flexibility, partial flexibility and full flexibility) in a dynamic supply chain model based on some key parameters and performance measures. Supply chain flexibility has significant potential and needs a greater research attention. The paper attempts to advance the knowledge of dynamic control on effective flexibility exploitation in the context of dynamic supply chains. A simulation model of a dynamic supply chain is used for this purpose. The key results are highlighted along with industry implications. Here each supply chain node involves decision-making. Based on the order and sample information available from the immediate buyers or customers, the supplier selection decisions are dynamically made. A seemingly good decision at a stage based on local information often ends up as detrimental not only to the total chain cost, but also to the total costs of the node itself. These observations are important for the designers and managers of the flexible supply chain systems to arrive at appropriate types and a judicious level of flexibility to attain significant improvements in total cost reduction. The modelling of dynamic supply chains with a focus on flexibility can offer enormous potential to the industry. This paper addresses this interesting and challenging domain.     

Optimizing 3PL service delivery using a cost-to-serve and action research framework

Full spectrum visibility and real-time management of increasingly complex, high-velocity operations will be the landmark practices of supply chain management in the twenty-first century. Integrating various business processes across functions is at the heart of supply chain management. As we survey the landscape, we can identify two sets of converging forces and newly emerging capabilities that will shape the way supply chains will develop in the near future. The first issue deals with the rapid rise of global third party logistics (3PL) companies that manage entire supply chains. The second issue has to do with how supply chain organizations plan and budget for a process of change, while simultaneously maintaining focus on full supply chain costs using a method known as the cost-to-serve (CSM) method. It is precisely these two issues that we address in this paper. Our first objective is to document the research conducted by the authors in the offshore oil and gas exploration and production industry. Our second objective is to use the CSM method to identify relevant cost drivers of 3PL services by nesting within an action research approach that pinpoints relevant operational constraints. The third objective is to use the action research framework and CSM to model various cost elements that could be incorporated into the objective function of a mathematical programming model. We compared the current design to the optimal design that we obtained from the model, and performed cost-benefit analysis to show the superiority of our procedure.