The role of ICT in the strategic integration of the automotive supply-chain (original) (raw)
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Automotive industry has hundreds of suppliers and thousands of spare parts units. Due to globalization, the automotive supply chain has been undergoing tremendous changes and the industry has been exploring innovative methods to reduce operating cost, lead time and inventory to sustain their growth in the market. With the expansion of sourcing partners, streamlining customer requirements, inventory management, accurate forecasting, better suppliers' relation, coordination and cooperation across supply chain, better visibility and control over the process and reduction of lead time is being achieved by the organizations. The Indian auto industry is small in size, compared to the world markets ($ 6.73 billion compared to a world market of $737 billion) but has experienced a growth rate of 20-25% in the past few years. Despite higher raw material costs, higher energy costs and poorer infrastructure in India, multinational OEMs that have entered the Indian market have managed to produce cars that have high local content and are sold at competitive retail prices, largely owing to efficient supply chain. The last few years have seen greater integration of the Indian automobile industry with its global counterparts. Most significant challenge identified by automotive Players in India is ‗integrating the entire supply chain' and managing it as a single integrated entity. Managing inbound logistics remains another key concern for OEMs as well as auto component players, driven more by challenges related to reliability of data, lead time and absence of quality logistics players on the upstream side. The present paper attempts to capture the innovative supply chain practices in Indian Automobile Industry, identify key challenges involved in integration and implementation of supply chain, and suggests strategies to overcome the challenges for optimum leverage.
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Exploring the impact of ICT on integration in supply chain control: a research model
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The adoption of information and communications technology (ICT) is spreading rapidly in supply chain management. As companies seek to improve supply chain efficiency through increased integration, ICT can be considered as a key enabler for supply chain management by supporting information-sharing. A literature review within supply chain integration and the impact of ICT indicates that there are various integration dimensions and levels, and different effects and influencing factors. Even though there is a considerable amount of research within the field, the complexity of ICT impact on integration implies that previous studies cover only a limited number of dimensions and variables at a time. In this paper, we propose a research model that can support empirical in-depth studies seeking to explore how ICT influences integration in supply chain control. The model is developed from literature and incorporates areas of control, ICT, integration dimensions, ICT effects, influencing factors and supply chain integration.
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