Abstract
It is necessary that organizations define strategies for cost management in interorganizational relationships existing in the Supply Chain (SC), focusing not only on reducing individual costs, but on improviving the competitive advantage of these chains. The Interorganizational Cost Management (ICM) focuses on minimizing costs, creating competitive advantages in relation to competing chains. The objective of this study was to check how the ICM has been applied in the chain of an automotive assembly plant in the Greater Region of ABC (state of São Paulo). In conducting the exploratory research, we inquired of 10 managers in the areas of Procurement, R&D, Supplier Quality Engineering, Logistics and Finance, to identify and analyze the aspects that characterize the practice of ICM in the assembly plant chain. We found that the ICM is adopted in all phases of the life cycle of the product, focused on cost reduction and continuous improvement of processes and products. The results show that the practice of ICM makes the relationships between the assembly plant and its suppliers more profitable and sustainable, and it is a tool capable of delivering benefits to the entire chain. Therefore, it should be included in the strategic management of companies.
Highlights
New paradigms interfere in and change consumption and production practices, and change relationship and social structure dynamics (CASTELLS, 2001)
The results show that the practice of Interorganizational Cost Management (ICM) makes the relationships between the assembly plant and its suppliers more profitable and sustainable, and it is a tool capable of delivering benefits to the entire chain
The region focused by the field research is the Greater ABC, in the state of São Paulo, for it concentrates the highest number of assembly plants and auto part manufactures in Brazil (XAVIER, SOUZA, BRESCIANI, 2007)
Summary
New paradigms interfere in and change consumption and production practices, and change relationship and social structure dynamics (CASTELLS, 2001). Operating in an interorganizational network, the company is no longer observed individually, but in a context with one or more interconnected companies, and can share resources, people and technologies, with a single way of working and with the same or similar strategies (DEKKER, 2003). Rocha (2007), the Strategic Cost Management (SCM) does not boil down to actions seeking cost reduction: it refers to actions seeking improvement of the company’s competitive advantage in broad terms. This is the new scenario in which, currently, most major companies have implemented cost management strategies focused on interorganizational relationships (KULMALA, PARANKO, UUSI-RAUVA, 2002)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
