Abstract
The automobile industry is set to undergo a structural transformation in the progress toward next-generation industries that involve autonomous vehicles and connected cars. Thus, supply chain management has become increasingly important for corporate competitiveness. This study aims to identify opportunities for improving supply chain performance by quantifying the impact of suppliers on the supply chain. An analysis was conducted in two phases. First, the efficiency of 139 partners that supply automobile components to the Hyundai Motor Company was measured using the Charnes–Cooper–Rhodes model, while the efficiency of Hyundai Motor Company’s 540 supply chains comprising partners, subsidiaries, and parent companies was measured using the network epsilon-based measure model. Second, the relationship between the partner efficiency and the supply chain efficiency was analyzed using the Mann–Whitney U test and the Tobit regression model. The results showed that efficient operation of partners hampers the efficiency of the total supply chain. Thus, there may be several partners that are not committed to quality improvement, while the Hyundai Motor Company seeks to promote quality management through win–win cooperation with partners. Consequently, automakers must review their partner management system, including their performance measurement and incentive systems.
Highlights
The current automobile industry is undergoing structural changes because of its convergence with cutting-edge information and communication technologies—such as artificial intelligence and the Internet of Things, along with big data—in order to produce next-generation automobiles
The main purpose of this study was to identify the impact of the partner efficiency on the overall supply chain efficiency
Under the assumption that a supply contract that specifies the unit price and quantity is signed between automakers and partners, an input-oriented CCR model was used to measure the efficiency of the individual partner, while an output-oriented network epsilon-based measure (NEBM) model was used to measure the efficiency of the overall supply chain
Summary
The current automobile industry is undergoing structural changes because of its convergence with cutting-edge information and communication technologies—such as artificial intelligence and the Internet of Things, along with big data—in order to produce next-generation automobiles. To achieve sustainable competitiveness and maximize operational efficiency, the importance of the supply chain has been further emphasized [1]. The systematic management of the supply chain requires activities such as demand forecasting, production planning and scheduling, procurement, inventory management, and logistics to be managed at an integrated supply chain level, rather than an individual company level [2]. Studies on the establishment of an efficient and sustainable supply chain have been actively conducted [6,7,8,9]
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