Managing risks under highly dependent supplier-producer relation in modern automotive industry
Outsourcing, modularization and other modern supply chain approaches have increased the dependence on modern supply chains, since automobile producers prefer to get complete modules from a few suppliers, instead of getting components and building parts in-house. This dependence on supply chain has made them vulnerable to risks; many incidents happened when automotive producers had to stop the production because of first or second tier suppliers. In this paper we analysed how automotive producers are managing high dependence in the supply chain and how suppliers perceive the orignal equipment manufacturer (OEM). For this purpose, we compare policies from three German automotive companies by which they manage relations with the suppliers, moreover it is investigated how suppliers perceive the regulation policies of automotive companies. The analysis showed that when the companies are highly dependent on the supplier, the management of supplier-producer relation is more efficient while when the dependence is less, and the management of relation with supplier is inefficent.
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