Article Details

An Analysis on the Globalization and Capabilities of Supply Chain Management to Support Automotive Industries |

Prakash D, in International Journal of Information Technology and Management | IT & Management


The automotive companies in the world are facing new and pressingchallenges. In future due to globalization, the automotive supply chain shouldfocus on exploring innovative methods to reduce operating costs, lead times andinventory to sustain their growth rate in market. Globalization will foster asubstantial industrial reorganization in the automotive industry. The study ofthe automotive supply chain management deserves careful attention. In futureinstead of brand versus brand or store versus store it will be supplier brand–store versus supplier–brand–store or supply chain versus supply chain. Size will no longer be a guarantee of success. Only that companies thatwill find new ways to create profits will only prosper in future. The purposeof this paper is to present a short overview of the globalization of supplychains in automotive industry focusing on their future perspective and how thecompany should focus on building a smarter supply chain to overcome emergingchallenges. The goal of this paper is to analyze how the major trends acting inthe automotive industrial segment impact its supply chains through thedevelopment of SCM capabilities. The paper offers a case study that associatesthe automotive trends to the strategic goals of a vehicle manufacturerregarding the supply chains of a specific vehicle module. Within this association,we analyze how the SCM capabilities are related to this OEMs strategic goal andcorrelate the trends with the capabilities developed within the vehiclemodule’s supply chains.