Abstract
The implementation of industrial condominiums in Brazil's automotive industry introduced a new standard for the relationship between automakers and auto parts suppliers. High levels of outsourcing, long-term contracts, integrative agreements, coproduction of components, exchanges of specific resources, and intensive interchange of information characterize the automaker's relationship with suppliers in these new arrangements. This paper analyzes the relationship between an automaker, constituted in the form of an industrial condominium, and a systemist supplier operating inside the automaker's plant, exploring the impacts and innovations in the way production is organized and in how the supplier's performance is measured. The findings reveal the transfer of added value from the automaker to the systemist supplier and a high degree of integration of logistics and production between companies
Highlights
Term contracts, integrative agreements, coproduction of components, exchanges of specific resources, information interchange, and support to suppliers
This new relationship standard between automakers and suppliers in Brazil’s automotive sector motivated the present research, which was conducted by means of interviews with five executives from the areas of production and logistics at the automaker and a director of production at the systemist supplier
To achieve the proposed objective, this paper discusses the dynamics of the structure and the relations in the context of supply chain management, the configurations of the world’s and Brazil’s automotive industry, the research methodology, the companies of this study, the relationship among companies in the industrial condominium, the impacts on product planning, production, supply and measurement of performance in the chain, and our final conclusions
Summary
Term contracts, integrative agreements, coproduction of components, exchanges of specific resources, information interchange, and support to suppliers. The demands of automakers on first tier suppliers range from design capability and manufacturing excellence to product delivery (Humphrey et al., 2000) These authors highlight three trends in the change of the relationship between automakers and auto parts suppliers: first – greater supplier responsibility for design; second – a trend for the supply of complete functions (systems, subsystems or modules); and third – automakers are standardizing their platforms among their sister companies in the different markets. This new relationship standard between automakers and suppliers in Brazil’s automotive sector motivated the present research, which was conducted by means of interviews with five executives from the areas of production and logistics at the automaker and a director of production at the systemist supplier. To achieve the proposed objective, this paper discusses the dynamics of the structure and the relations in the context of supply chain management, the configurations of the world’s and Brazil’s automotive industry, the research methodology, the companies of this study, the relationship among companies in the industrial condominium, the impacts on product planning, production, supply and measurement of performance in the chain, and our final conclusions
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