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.     

Impacts of using a performance measurement system in supply chain management: a case study

The study examines how the utilisation of a new performance measurement system (PMS) influences supply chain management (SCM) and what kind of impacts the new system has on the performance of the supply chain. The paper utilises a longitudinal research setting where the data was gathered in two semi-structured interview studies after an action research project in which a new measurement system was designed and developed. The findings show how a PMS serves as a catalyst of inter-organisational knowledge transfer and promotes shared learning. The results also show how knowledge transfer and shared learning led to improved performance of the supply chain. The paper contributes by opening up the practical mechanisms through which performance measurement provides value for SCM and by showing how inter-organisational transfer of performance information catalyses learning and performance improvement. The paper looks beyond the design of performance measures and provides a view on the practice of supply chain performance management. The paper illustrates how sharing performance information amongst supply chain companies improves managers’ awareness of shared targets and the status of network operations. This also resulted in improved performance in the studied case network. Overall, the results encourage organisations to engage in network-level performance measurement and share performance information with their network partners.     

Study of supply-chain management in the automotive industry: a bibliometric analysis

The economic and social importance of the?automotive industry explains the need for researching improved ways of?organising and?managing the diverse processes involved in the production of?motor vehicles. Furthermore, the management of supply chains and inter-organisational?relations has acquired strategic significance in recent years and has become a?key area of research. At the interface?between these two fields, this paper adopts a bibliometric viewpoint to analyse the scholarly literature that has addressed?the study of?supply chains within the specific sphere of the automotive?industry. To do so, it has examined the 404 papers on this topic indexed?through to 2011 in the Business Source Complete database. This has allowed?identifying trends and opportunities related to the what, how and where of research into this matter.     

Applying performance measures to support decision-making in supply chain operations: a case of beverage industry

Performance measurement systems (PMS) have commonly been applied to evaluate and reward performances at managerial levels, especially in the context of supply chain management. However, evidence suggests that the effective use of PMS can also positively influence the behaviour and improve performance at an operational level. The motivation is to accomplish organisational goals, namely to increase supply chain flexibility by responding to evermore-varying customer demands in a timely manner. The purpose of the study described in this paper was to develop a conceptual framework that adopts performance measures for ex-ante decision-making at an operational level within the supply chain. To guide the research, five questions were asked and subsequently key gaps have been identified. In an attempt to fill the gaps, a case study at a major global brand beverage company has been carried out, and as a result, a conceptual framework of the PMS has been developed. Overall, the research offers a foundation of the applicability and impact of PMS in the supply chain and provides a framework that attends to some of the potential uses of PMS that so far have not been practically applied. The outcomes from the testing indicate that the initial gaps identified in the literature have been addressed and that the framework is judicious with scope for practical applicability. The framework is deemed worthy of further testing in different operational contexts of the supply chain.     

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 SCOR-based model for supply chain performance measurement: application in the footwear industry

Supply Chain Operations Reference (SCOR) is a widely employed model for SC performance assessment, regardless its generic nature. This article presents a SCOR-based model for performance measurement in supply chains (SC) and apply it in the context of Brazilian footwear industry. The model has two dimensions: SCOR processes (source, make, deliver and return) and performance standards adapted from original SCOR (cost, quality, delivery and flexibility). This structure delivers a 4 × 4 matrix, with each component assessed under analytical hierarchy process. Using focus groups, SC’s experts weighted each component of the matrix regarding their relevance. Thereafter, SC’s managers indicated respective results. The SC’s overall performance was obtained by adding the performance of all indicators. The model application embraced one focal footwear manufacturer, four suppliers, three distribution channels and a return channel, with 85 indicators assessed. The achieved performance for the whole SC is 75.29%.The main gaps were found in deliver process (12.78 percentual points of difference between relevance and achieved proportions) and in flexibility performance (9.82). Further application is recommended in order to find consolidated results.     

Mapping the future of supply chain management: a Delphi study

Supply chain management, a field that developed from business practice and research, is undergoing a major transformation. It is changing from tactical in nature (where the major focus is on cost and delivery) to a field that is strategic in nature. However, the future issues and challenges facing managers and executives are just now becoming understood. This paper reports these issues by drawing on the findings generated by a three-phase study consisting of a literature review, a two-round Delphi study, and a workshop. Unique in this Delphi study is that it brings together leading practitioners in supply chain management with leading supply chain management researchers. The findings show that while the focus of the current tactical supply chain view is relatively limited to issues of delivery, risk, and leadership, the supply chain view of the future (i.e., five years from now) is more complex and demanding. The findings also show that there is generally no difference between researchers and practitioners in terms of how they view the issues. Finally, the study uncovers major obstacles that must be resolved before the strategic potential of future-state supply chains can be realised.     

Threats and benefits of power discrepancies between organisations: a supply chain perspective

The discrepancy of power between organisations has raised concerns over the abuse of power in inter-organisational relationships, especially in the supply chain where parties often have different power positions. In this study, we develop and test a model that explains how the less powerful party may react to different forms of power exercised by the power source. Nowadays, customers are typically more powerful than manufacturers in supply chains. Specifically, based on data from 617 manufacturers representing various organisational sizes and industries, we examine the impact of customer coercive and expert power on the manufacturer’s information sharing behaviours (information systems and content) as well as the performance implications for both the manufacturer and the customer. Structural equation modelling reveals that customer expert power positively predicts the establishment of information systems and the extent to which information is actively shared. In contrast, customer coercive power is negatively associated with the establishment of information systems, while it is positively related to information content. Information systems, in turn, predict the extent to which information is effectively exchanged, which ultimately relates positively to flexibility and delivery performance. Flexibility performance is positively related to financial performance, while delivery performance is not. Taken together, these findings enrich our understanding of inter-organisational power dynamics by offering important insights into differential reactions that the power target may choose to counter power imbalances.     

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.     

Determining the optimal collaborative benchmarks in a supply chain

Supply chains are currently considered dynamic systems and will change with time and with the environment. Thus, the performance of a supply chain system will not only be influenced by the determined measuring factors but also by the adding or withdrawal of enterprises. Faced with these unstable systems, this study employs the Data Envelopment Analysis and sensitivity analysis methods in order to measure supply chain collaborative performance as well as relative individual company performance. This approach principally aims at finding: (1) an effective collaborative performance evaluation method that can cover the measuring factors admitted by all chain members; (2) the robust benchmark companies for closely related chain members. The results of this research clearly show the expected study target that will benefit chain members in performance improvement.     

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.     

Sustainable supply chains for supply chain sustainability: impact of sustainability efforts on supply chain risk

Supply chain managers across the globe are finding it difficult to manage the increasingly complex supply chains despite adopting a variety of risk mitigation strategies. Firms on the other hand have also been adopting various kinds of environmental and social sustainability practices in recent times to reduce carbon footprint and improve their image on the social front. However, very few studies in the extant literature have examined the impact of sustainability practices on supply chain risk. We address this important gap in literature by empirically testing this relationship, using primary data from six manufacturing sectors and 21 different countries including developed as well as emerging markets across the globe. Our findings indicate that risk mitigation strategies do not always reduce the actual supply chain risk experienced by firms, whereas sustainability efforts help reduce supply chain risk, especially in emerging market contexts. In addition, we find that, while reactive risk mitigation strategies on their own fail to reduce supply chain risk, they are effective when used in conjunction with sustainability efforts. We also find that preventive risk mitigation efforts are only effective in mature supply chains such as the OECD countries.     

Sustainable benchmarking of supply chains: the case of the food industry

Long-term organisational viability and competitiveness should not be evaluated solely in terms of financial measures. Investors, policy makers and other stakeholders increasingly seek to evaluate performance with respect to sustainability – the environmental, social and economic performance of an organisation. But measuring and improving the sustainability performance of supply chains is challenging. Using one of the world's most critical supply chains, the food supply chain, we introduce and apply a multi-stage procedure to help analytically evaluate supply chains’ sustainability performance. The method involves development of sustainability indicators, data collection, data transformation using rescaling and determining of importance ratings using the Analytic Hierarchy Process (AHP). The proposed methodology demonstrates how quantitative statistical data can be combined with expert opinion to construct an overall index of sustainability. Stakeholders can use the index to evaluate and guide sustainability performance of supply chains. Strengths and opportunities, as well as limitations of the methodology are discussed, and sensitivity analysis is performed.     

Value chain management for commodities: a case study from the chemical industry

We present a planning model for chemical commodities related to an industry case. Commodities are standard chemicals characterized by sales and supply volatility in volume and value. Increasing and volatile prices of crude oil-dependent raw materials require coordination of sales and supply decisions by volume and value throughout the value chain to ensure profitability. Contract and spot demand differentiation with volatile and uncertain spot prices, spot sales quantity flexibility, spot sales price–quantity functions and variable raw material consumption rates in production are problem specifics to be considered. Existing chemical industry planning models are limited to production and distribution decisions to minimize costs or makespan. Demand-oriented models focus on uncertainty in demand quantities not in prices. We develop an integrated model to optimize profit by coordinating sales quantity, price and supply decisions throughout the value chain. A two-phase optimization approach supports robust planning ensuring minimum profitability even in case of worst-case spot sales price scenarios. Model evaluations with industry case data demonstrate the impact of elasticities, variable raw material consumption rates and price uncertainties on planned profit and volumes.     

Arcs of supply chain integration

Integration is posited by many authors as a supply chain utopia. Indeed, it is claimed as being synonymous with supply chain management excellence. The primary aim of this research is to verify the link between supply chain integration and competitive performance. Detailed information collected via an 8-year international field study of 50 products and their associated supply chains subjected to an extensive statistical analysis provides rigorous insight into supply chain integration in practice. The breadth of supply chain integration significantly correlates with increased performance, yet in practice, the majority of supply chains are not well integrated. However, most supply chains seem to follow a popular route when seeking to enable seamless operations. This starts with enhanced internal effectiveness followed by upstream streamlining and then finally downstream integration. If practitioners are still struggling with supply chain integration, this research confirms that they are not unique in their predicament. Indifferent practice is indeed the norm. Fortunately, practitioners can follow the popular route established herein when seeking to improve integrative capability.     

Industry 4.0: a supply chain innovation perspective

The Fourth Industrial Revolution – also known as Industry 4.0 (i4.0) – comprises the digitalisation of the industrial sector. This paper uses the theoretical lens of supply chain innovation (SCI) to investigate the implications of i4.0 on supply chain management. For these purposes, the method of structured content analysis is applied to more than 200 use cases of i4.0-enabled SCI introduced by both established and startup companies. i4.0-enabled SCI manifests along three dimensions: process, technology, and business architecture. The key findings of this study can be summarised as follows: first, i4.0-enabled SCI extends the initial focus on productivity improvements in SC processes towards scalability and flexibility. Second, extant i4.0 solutions rely mostly on analytics and smart things while omitting smart people technology and the human-centric approach associated with the i4.0 paradigm. Third, established companies adopt i4.0 merely to sustain their existing business architectures while startup companies radically change their operating models, relying heavily on data analytics and the platform economy. Consequently, established companies pursue a problem-driven, engineering-based approach to SCI while startup companies follow an ‘asset-light’, business-driven approach. Lastly, there are two distinct approaches to digitalising operational SC processes: platform-based crowdsourcing of standard processes and on-demand provision of customised services.     

Developing sustainability in the Italian meat supply chain: an empirical investigation

Although sustainable supply chain (SC) management has been widely investigated in recent years, the focus has mainly been on the practices adopted by a single company, so missing the big picture at SC level. This study of the Italian meat industry considers the SC as a whole, identifying the critical points for each stage in terms of economic, environmental and social sustainability. To this end, a first set of case studies was conducted of companies at different stages of the SC before turning to focus on the meat processing stage, which was identified as critical and highly relevant. A second set of case studies analysed how these companies leverage SC management practices to develop sustainable SCs. In so doing, specific attention was paid to drivers and contingent variables that foster the adoption of sustainable practices. The results of the two steps were then merged to illuminate how practices adopted by the meat processors can impact on the whole chain, confirming their pivotal role in driving sustainability. These results provide a holistic view of the phenomenon, encompassing the entire chain from end to end and highlighting the interdependences across various stages of the meat SC.     

Supply chain planning in the German automotive industry

Following the evolution in the computer industry, quite a lot of car manufacturers currently intend to move from a built-to-stock oriented production of standardized cars towards a customized built-to-order (BTO) production. In the premium segment of Germanys automotive industry, the share of customized BTO cars traditionally is comparatively high. Nevertheless, German car manufacturers have spent a lot of efforts in recent years to further increase this share in order to realize short delivery times, high delivery reliability and a fast responsiveness. Surprisingly, comprehensive overviews of the short- and mid-term planning landscape of car manufacturers cannot be found in the scientific literature. Thus, the first part of the paper discusses supply chain planning, as traditionally established in the premium segment of the German automotive industry, and reviews methods of Operations Research (OR) that are able to support the various planning tasks involved. In the second part, the major change in strategy, currently to be observed in the German automotive industry, is briefly summarized in order to derive its impacts for the planning system and for the respective planning methods. In this way, challenges for a future application of OR methods in the automotive industry can be identified.     

Traceability as a means to investigate supply chain sustainability: the real case of a leather shoe supply chain

In recent years, the growing attention to environmental challenges has shown that these issues are becoming of more and more interest to both research and industry. Companies are expected to ensure their products are fully traceable and more sustainable, which requires the involvement of all of the actors in the production network. According to this aim, this study proposes a structured approach that uses the traditional traceability concept as a means to identify the main information needed to assess environmental impacts along the whole supply chain (SC). The proposed approach is composed of four main steps: (i) SC modelling to identify all stakeholders and their inter-relations, (ii) data sharing to collect all relevant data, (iii) data elaboration to calculate performance at different levels of detail and (iv) result interpretation to optimise the SC. The distributed implementation of the approach at different SC steps represents a useful means to practically realise a sustainable SC management. A case study involving a leather shoe SC is used to demonstrate the effectiveness of the approach in identifying criticalities, supporting the selection of the most appropriate suppliers and correctly setting a management strategy towards the optimisation of internal and external traceability and environmental sustainability performances.