Supply Network Management in the Indian Automotive Industry: A Case-Study Based Analysis

Two major developments in the global automotive industry are the increasing importance and integration of suppliers into the value creation process and the rise of emerging markets such as India or China. The growing importance of suppliers for OEMs and the increasing interdependence between the key players in the automotive industry are a result of the shift in the value creation process, with suppliers accounting for projected 77 % of total value creation in 2015. New requirements are set by customers characterised through higher quality expectations and a wide array of individual customer wishes. With model life cycles having been reduced from ten years in the past to six years today, the innovative ability of organisations remains a key success factor. However, rather the increasing pressure on costs and efficiency is still driving the OEMs and suppliers within the automotive industry. To reach the requirements for innovations, the reduction of costs, and the provision of quality, OEMs are focusing on differentiating and strengthening their brands and capabilities.