Innovations in vehicle manufacturing,
design and engineering are rapidly changing the automotive industry. To keep
pace with evolving technologies, traditional relationships between car
manufacturers and suppliers are being redefined. New research at Northumbria
University brings clarity to the complexity of the automotive supply chain,
increasing operational efficiency and effectiveness.
Automotive supply chains have been
going through a period of transformation in recent years. Driven by technological advances, suppliers
are increasingly offering systems and design solutions and collaborating with car
manufacturers to create innovative auto parts. These evolving relationships
have significant implications to the traditional supply chain model. A full appreciation
of this nuanced supply chain is vital for the effective management of organisational
practices and procedures.
Dr David Bennett, Senior Lecturer, Newcastle Business School, Northumbria
University, is leading advanced research into the automotive supply chain,
examining the supplier level tiers and associated terminology. For over a
decade, his pioneering work has informed major global car manufacturing
organisations and academia of the importance of an explicit supplier
tiered-structure positioning strategy. This latest research has been conducted
in collaboration with Professor Dr Florian Klug (Munich University of Applied
Science), Professor Dilek Demirbas (Istanbul University Business School) and
Emma Dinsdale, Senior Controller (automotive manufacturing, UK).
The supply chain is traditionally
defined into supplier tiers – 1, 2, 3 etc., however, they do not reflect the
real-life complexities of these relationships. Different ranks of suppliers,
for example, can be placed in the same tier, making it challenging for
manufacturers to identify the superiority of the supplier and delegate
appropriately. Previous research identified the limitations of the traditional
model and introduced Tier 0.5 and Tier 0 to accurately reflect supply level
intricacies. These additional tiers, however, have not been properly
understood, until now.
Dr Bennett and his team’s extensive
research into the
working relationship between car manufacturers and their suppliers, as well as business
excellence and trends in relation to synchronous supply in the UK automotive industry reveals the complexities of the tiering system. It provides a clear understanding of who leads
and follows in the supply chain, essential as car producers continue to give greater
responsibility to suppliers. Importantly, it reduces the possibility of production and supplier
delivery errors through product supplier tiering ambiguity and misidentification. Car manufacturers, for
instance, are now able to accurately identify the supplier position as Tier 0
or Tier 0.5, instead of previously all being placed Tier 1.
The automotive industry is starting to benefit from the value
of the new identification and position of Tier 0.5 and Tier 0. This improved understanding and
awareness of nomenclature has had a significant impact on supply chain
efficiency and effectiveness in the UK, Europe and the Far East, as well as the
wider car industry.
Dr Bennett’s research
into automotive systems is ongoing and in a further study he is collaborating
with Warwick University Manufacturing Group (WMG) to explore UK car production
operations management and organisational structuring with suppliers. For another
project, Dr Bennett, has partnered with Istanbul University Business School to study
continuous improvement in manufacturing operations management processes. This
work has led to the book, Modern Kaizen Operational Practice in the
Automotive Industry, published in April
2019.
