Framework for Study of Supplier Relationships in Indian Automotive Supply Chains

2015 ◽  
Vol 4 (3) ◽  
Author(s):  
Souresh Bhattacharya ◽  
D. Mukhopadhyay ◽  
Sunil Giri
Keyword(s):  
Supply Chains ◽  
Automotive Industry ◽  
Supplier Management ◽  
Supplier Relationships ◽  
Technological Advances ◽  
Management Orientation ◽  
High Level ◽  
Supplier Partnerships ◽  
Automotive Supply ◽  
Supplier Relationship

Indian automotive industry has increasingly adopted global supply chain best practices including supplier relationship as a management imperative, in the last two decades. Increased competition, globalization, wide-spread outsourcing, use of information technology and rapid technological advances have contributed in supplier relationship development with the objective to achieve competitive advantage and a high level of performance. It is evident that only if mutual benefits accrue to both Vehicle Assemblers (VA) and their suppliers, the partnership between them would be meaningful and effective. Also, VAs have necessarily, to invest considerable resources and effort in achieving collaboration with their suppliers and cost-effectiveness becomes an issue which leads to supply base rationalization and a segmented approach. Therefore understanding the issues involved and identifying focus areas for successful supplier relationships becomes an imperative. This paper, based on an exploratory study, delves into the VA-supplier interface in Indian automobile supply chains, examines various theoretical and practical dimensions, in order to identify strategic imperatives (key impact drivers), Supplier Management Orientation (SMO) of VAs, adoption of Supplier Development Practices, extent of VA-supplier partnerships and mutual benefits accruing to both entities. Based on this a framework for holistically studying the VA-supplier interface is proposed.

scholarly journals THE IMPACT OF THE COVID-19 PANDEMIC ON SUPPLY CHAINS IN THE AUTOMOTIVE INDUSTRY

2020 ◽  
Author(s):  
Goran Milovanovic ◽  
◽  
Tamara Stankovic ◽  
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Automotive Industry ◽  
Business Relationships ◽  
Automotive Supply Chain ◽  
Automotive Supply ◽  
The Impact ◽  
Insight Into ◽  
Chain Level

Health crises have an impact on supply chains, mainly by disrupting their regular activities. In this research, the authors have analyzed the impact that the Covid-19 pandemic has made on business relationships between supply chain partners in the automotive industry and their suppliers, which are mostly from territories where the initial outbreak of the SARS COV 2 virus occurred. The analysis shows that in some cases, there is a strong dependency between the pandemic and production levels. Being dependent prevents supply chains from maintaining stability and causes system vulnerabilities. The authors conclude their work with a thesis on the pronounced impact of the current pandemic on automotive supply chain activities. For the analysis to be complete, it is necessary to monitor changes in production levels further, since data for the current year still does not provide a realistic insight into all the consequences at the supply chain level.

scholarly journals The Effect of the Covid-19 on the Automotive Supply Chains

2020 ◽  
Vol 65 (2) ◽  
pp. 1-11
Author(s):  
Beáta Sz.G. Pató ◽  
Márk Herczeg
Keyword(s):  
Supply Chains ◽  
Value Added ◽  
Raw Material ◽  
Material Supply ◽  
Recent Outbreak ◽  
High Level ◽  
Automotive Supply ◽  
Relationship Of ◽  
Global And Local

AbstractSecuring the high level of performance of the supply chains is a difficult task. The harmonization of different interests, the coordination of the raw material supply and information flow, the cooperation of the partners, forging and maintaining a relationship of trust are challenging even in an ideal world in order to meet the customer demands. The recent outbreak of the COVID-19 presents the members of the supply chains with extreme challenges. Because of the epidemic, the value added activities of the supply chains are getting even more importance. It became clear that the different supply chains connect the whole economy in a global and local scale as well. The choice of the inventory and organizational strategy is a key aspect in a crisis like this. The aim of this study is to present the current challenges and their viable solutions in order to check the possibilities to maintain the operation of the supply chains even in this difficult economic and social period using an automotive case study as an example.

The Purchasing Agent's View of Online Reverse Auctions

2009 ◽  
pp. 1929-1942
Author(s):  
Peggy D. Lee
Keyword(s):  
Success Factors ◽  
Negative Impact ◽  
Reverse Auctions ◽  
Supplier Relationships ◽  
Critical Success ◽  
High Level ◽  
Online Reverse Auctions ◽  
Supplier Relationship

This chapter views online reverse auctions from the purchasing agent’s perspective. I found that purchasing agents with a high level of buying experience will perceive that online reverse auctions have a negative impact on the trust and cooperation in supplier relationships. Purchasing agents did not see a negative impact of online reverse auctions on long term viability of suppliers. The chapter discusses the evolution of the buyer-supplier relationship, emphasizing the critical success factors in supplier selection. Further, it discusses the role of the online reverse auction in the buyer-supplier relationship. By understanding the lens through which purchasing agents view online reverse auctions, managers can do a better job of managing the procurement function through improved training programs for purchasing agents that incorporate the appropriateness of online reverse auctions vs. other sourcing strategies. In addition, they will be able to better manage online reverse auctions, minimizing any negative impact of the auction on existing supplier relationships.

scholarly journals Supplier–customer relationships: Weaknesses in south african automotive supply chains

2012 ◽  
Vol 6 (1) ◽  
Author(s):  
M. J. Naude ◽  
J. A. Badenhorst-Weiss
Keyword(s):  
Supply Chains ◽  
South African ◽  
Automotive Industry ◽  
Customer Relationships ◽  
The South ◽  
Collaborative Relationships ◽  
Automotive Components ◽  
Optimal Efficiency ◽  
Automotive Supply ◽  
Original Equipment Manufacturers

The South African automotive industry, which is an important sector in the South African economy, needs to function efficiently if it is to compete internationally. However, South African automotive components manufacturers (ACMs) are not internationally competitive and automotive assemblers, also known as original equipment manufacturers (OEMs), often import cheaper components from abroad. All parties in the South African automotive supply chains need each other to ensure optimal efficiency and competitiveness. Furthermore, it is vital that good relationships exist between customers and suppliers in the automotive supply chains in South Africa. ACMs are central to automotive supply chains. A survey was conducted among ACMs to determine the nature of relationships that exist between buyers and suppliers in South Africa’s automotive supply chains. The results showed that collaborative relationships do indeed exist between members of the supply chain but that communication, understanding of the parties’ situations and cooperation can improve this relationship and so create total alliance between OEMs and ACMs.

Buyer’s dependence in value creating supplier relationships

2015 ◽  
Vol 20 (2) ◽  
pp. 151-162 ◽  
Author(s):  
Anni-Kaisa Kähkönen ◽  
Katrina Lintukangas ◽  
Jukka Hallikas
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Value Creation ◽  
Relationship Management ◽  
Supplier Relationship Management ◽  
Supplier Relationships ◽  
Content Type ◽  
Research Gap ◽  
Power And Dependence ◽  
Supplier Relationship

Purpose – The purpose of this paper is to examine what kind of supplier relationship management activities can be seen as value-creating activities and how those might affect the buyer’s dependence on its suppliers. Power and dependence provide specific insights into the supplier relationship management and value creation in supply chains. Design/methodology/approach – The study utilizes a survey data with 165 cases collected in Finland. The concepts are tested by means of regression analysis. Findings – The findings of the study indicate that the value-creating activities of inter-firm learning and early supplier involvement increase buyer’s dependence, but a supplier orientation does not have similar effects. Practical implications – The results have implications for supply chain managers and practitioners in terms of shedding light on the approaches of dependence and value creation at the same time. Managers need to understand the factors that create dependence, but which also have a substantial influence on value creation in supply chains and networks. Originality/value – The literature review reveals that the supply chain situations in which the supplier is strategically important and its role in the value-creation process is significant, and when the buyer is dependent on the supplier, have rarely been discussed. Moreover, by focusing on the supplier relationship management activities that can be seen as value-creating activities and by combining this to the dependence perspective, this study aims to narrow the research gap identified from the previous research.

The Purchasing Agent's View of Online Reverse Auctions

2011 ◽  
pp. 28-42
Author(s):  
Peggy D. Lee
Keyword(s):  
Success Factors ◽  
Negative Impact ◽  
Reverse Auctions ◽  
Supplier Relationships ◽  
Critical Success ◽  
High Level ◽  
Online Reverse Auctions ◽  
Supplier Relationship

This chapter views online reverse auctions from the purchasing agent’s perspective. I found that purchasing agents with a high level of buying experience will perceive that online reverse auctions have a negative impact on the trust and cooperation in supplier relationships. Purchasing agents did not see a negative impact of online reverse auctions on long term viability of suppliers. The chapter discusses the evolution of the buyer-supplier relationship, emphasizing the critical success factors in supplier selection. Further, it discusses the role of the online reverse auction in the buyer-supplier relationship. By understanding the lens through which purchasing agents view online reverse auctions, managers can do a better job of managing the procurement function through improved training programs for purchasing agents that incorporate the appropriateness of online reverse auctions vs. other sourcing strategies. In addition, they will be able to better manage online reverse auctions, minimizing any negative impact of the auction on existing supplier relationships.

Reverse Auctions and Supplier Consortia

2011 ◽  
pp. 10-27
Author(s):  
Peter B. Southard
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Decision Process ◽  
Collaborative Group ◽  
Reverse Auctions ◽  
Reverse Auction ◽  
Supplier Relationships ◽  
Classification Framework ◽  
Six Dimensions ◽  
Supplier Relationship

Competition between supply chains has resulted in firms carefully examining the relationships that they have, or are contemplating having, with other links in their chain. While the main focus of this book is on a specific type of relationship, that of the reverse auction, other forms of buyer-supplier relationships exist. In order to better understand the implications of the reverse-auction relationship, managers should also analyze the alternatives and the environment of relationships in which reverse auctions operate. The focus of this chapter is on an alternative buyer-supplier relationship, that of the supplier consortia. Within the six dimensions of the framework proposed by Parente, et. al. (2004), this chapter examines this little-studied collaborative group and proposes a spectrum to begin to understand some aspects of buyer-supplier relationships. The chapter includes a theoretical classification framework for supplier consortia. It then compares and contrasts supplier consortia to the reverse auction concluding with a prescriptive decision process that can help managers better analyze the most appropriate form of buyer-supplier relationship for their firm and their supply chain.

scholarly journals Food Traceability: A Consumer-Centric Supply Chain Approach on Sustainable Tomato

Foods ◽  
2021 ◽  
Vol 10 (3) ◽  
pp. 543
Author(s):  
Foivos Anastasiadis ◽  
Ioanna Apostolidou ◽  
Anastasios Michailidis
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Food Supply ◽  
Food Industry ◽  
Methodological Approach ◽  
Consumer Involvement ◽  
Food Supply Chains ◽  
Traceability System ◽  
Technological Advances ◽  
High Level

Technological advances result in new traceability configurations that, however, cannot always secure transparency and food safety. Even in cases where a system guarantees transparency, the actual consumer involvement and a real consumer-based perspective cannot always be ensured. The importance of such consumer centricity is vital, since it is strongly associated with effective supply chains that properly fulfil their end-users’ needs and requests. Thus, the objective of this paper was to explore the level of consumer centricity in food supply chains under a traceability system. The methodological approach employed a framework of two studies validating subsequently a similar set of variables, using initially consumers data and then supply chain actors data. The supply chain of sustainable tomato was selected to design the studies. The level of agreement between datasets suggested the level of the supply chain consumer centricity. Findings showed health, trust, quality, nutrition, and safety-related values to be significant for the consumers towards accepting a traceability system. The supply chain actors also accepted a traceability system based on the fact that their customers’ needs rely on the exact same beliefs, indicating a high level of consumer centricity. The current work underlines the magnitude of consumer centricity in food supply chains and provides an easy and straightforward framework for its exploration. Key implications suggest the design of more effective supply chain and consumer-based strategies for the food industry. Policymakers could also adopt the concept of consumer centricity to further improve the food industry.

Interdependence analysis of supplier relationship challenges in the South African automotive industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohita Gangwar Sharma ◽  
Micheline Juliana Naude
Keyword(s):  
South African ◽  
Automotive Industry ◽  
Rapid Change ◽  
Ripple Effect ◽  
The South ◽  
Content Type ◽  
Automotive Supply Chain ◽  
Automotive Supply ◽  
Supplier Relationship ◽  
Relationship Challenges

Purpose 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. Design/methodology/approach 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. Findings 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. Research limitations/implications 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. Originality/value 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.

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