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Rethinking the supply chain: an automotive perspective

Rethinking the supply chain: an automotive perspective This paper contends that the description of tiering within automotive supply chains is likely to require redefining in light of the development of modular supply and that a natural consequence of modular supply will be the transfer of value-adding activity throughout the supply chain. Two concepts are presented to illustrate the characteristics that are likely to be required for suppliers to succeed within a modular environment. These concepts are applied to a supply chain currently in the process of accommodating modular supply. The findings suggest that whilst modularity accrues a number of tangible benefits to both the original equipment manufacturer (OEM) buyer and the modular supplier, the skills required to become a modular supplier are likely to result in a number of first-tier suppliers either exiting the industry or becoming second or third-tier suppliers. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Supply Chain Management An International Journal Emerald Publishing

Rethinking the supply chain: an automotive perspective

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References (18)

Publisher
Emerald Publishing
Copyright
Copyright © 2004 Emerald Group Publishing Limited. All rights reserved.
ISSN
1359-8546
DOI
10.1108/13598540410517610
Publisher site
See Article on Publisher Site

Abstract

This paper contends that the description of tiering within automotive supply chains is likely to require redefining in light of the development of modular supply and that a natural consequence of modular supply will be the transfer of value-adding activity throughout the supply chain. Two concepts are presented to illustrate the characteristics that are likely to be required for suppliers to succeed within a modular environment. These concepts are applied to a supply chain currently in the process of accommodating modular supply. The findings suggest that whilst modularity accrues a number of tangible benefits to both the original equipment manufacturer (OEM) buyer and the modular supplier, the skills required to become a modular supplier are likely to result in a number of first-tier suppliers either exiting the industry or becoming second or third-tier suppliers.

Journal

Supply Chain Management An International JournalEmerald Publishing

Published: Feb 1, 2004

Keywords: Automotive industry

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