The Information Flows and Supporting Technology in the Automotive Supply Chain: A Suppliers Focus”
DR. Anu Maheshwari DR. Sanjay Shankar Mishra
Guest Lecturer, Dept.of Commerce Prof. & Hod of Commerce Department
Govt. T.R.S.College, Rewa Govt. T.R.S.College, Rewa (MP)
INTRODUCTION: In today’s manufacturers’ world, suppliers play an ever more important role. The purchased materials of an average manufacturer account for over 50% of ...view middle of the document...
Supply chain management. A useful definition of supply chain management: “SCM is the integration of key business processes from end user through original suppliers that provides products, services, and information that add value for customers and other stakeholders”. For supply chains to be effective, operational information about the production process has to be shared between manufacturer and suppliers. Typically the goal is to create and coordinate the manufacturing process seamlessly across the supply chain in a way the competition can’t easily match. For the purpose of this paper the above definition of SCM is put next to the definition of process innovation; the radical improvement of business process performance through the use of innovative tools and work designs . The concept of supply chain management is a form of process innovation. SCM represents the process innovatory element of this paper. The automotive supply chain: In the automotive industry competition is fierce, supply chains are highly complex. The large number of suppliers and the large variety of products each of these suppliers have on offer (typically 5,000 upwards, with some suppliers having a catalogue of 100,000 items), results in a highly complex supply chain. When it comes to supply chain management, the automotive industry has been one of the early adaptors. Because of their early exposure to the Japanese challenge, Western automakers have been working longer than most other firms to adopt the kinds of close supplier relationships used by their Asian rivals . The automotive industry focus is especially interesting because of the shift made by suppliers. From small players that deliver individual parts they have developed to partners of the assemblers, with design, testing and manufacturing responsibilities [TCD02]. This development implies big changes in the way supply chain partners operate and communicate. RESEARCH STRATEGY: This research paper encompasses a descriptive literature study only. First of all it is important to determine how suppliers within the automotive industry interact with their clients, the actual carmakers, and what type of relationships they maintain. Only after these types of relations within the supply chain are established, it will be possible to make an assessment of the types information flows exchanged within these “supplier to automotive manufacturer” relationships. Fortunately there is a reasonable amount of research
already done on this topic. Secondly, when the most commonly found relationships and the corresponding information flows are established, there will be a need to determine how these are relaying on IT. Furthermore, the nature and degree of automation are important to distinguish, because of the innovatory value of the different IT applications. Finally, based on this descriptive literature study, the most important points for the supply chain community of the automotive industry will be summarized. SUPPLIER...