To investigate upon several parameters to measure supply

chain management performance with a focus on automobile

manufacturing industries in Indian context.

Group 4Nirav Karia

Ayush KhadelwalKaran MerchantPooja Navatake

Anmol Ojha

Contents

• Introduction and Background

• Literature Review

• Gaps in the Literature

• Research Objectives

• Conceptual Framework/Research Hypotheses

• References

INTRODUCTION India has become the preferred manufacturing destination for

many multinational automobile industries due to high quality and low cost operations. (V. B. Mahajan , V. R. Kalamkar And J. R. Jadhav,2013)

The emergence of India as manufacturing hub paved way to growth opportunities for Indian industries.

The automotive industry is the world’s largest single manufacturing activity.

It uses 15 percent of the world’s steel, 40 percent of the world’s rubber and 25 percent of the world’s glass.

(N. Suthikarnnarunai ,2008)

Automotive Supply Chain

Source: McGraw-Hill/Irwin, McGraw Hills Companies,(2006)

Why measuring Automotive Supply Chain Performance is important?

India is seeing rise in car models and it is expected to double by 2020 due to :Changing customer demographics and expectationsIncreasing competition with international players.Coexisting older platform(White paper A.T Kearney and CII,2013)

“What can’t be measured can not be improved” (Peter Drucker)

• Authorities and organisations have acknowledged the role of supply chain as source of competitive advantage to the automobile industry. (Gunasekaran and Ngai, 2004)

• Measuring supply chain performance can assist in better understanding of the SC and improving its overall performance (Chen & Paulraj, 2004).

• There is no consensus about its definition and constructs resulting in a fragmented literature, with difficulties in knowledge advance (Chen & Paulraj 2004).

Literature Review• In this dynamic business environment, a superior supply chain is one critical

element to helping automakers differentiate themselves from the competition. There are four auto industry trends and challenges which are Customer, external supply chain, competition and industry.

• The supply chain requires integrated capabilities and flexible tools based on real-time information to address this increasing complexity. (CISCO, 2008)

• There are of two types of trends which impacts the automotive industry demand side trends and supply-side trends .(Souresh,Mukhopadhyay and Giri,2014 )

• Uneven Growth, fragmentation, accelerated volatility are the trends in Demand where as differentiated outsourcing, low-cost-country sourcing, risk management and transparency & accountability are the trends in Supply. (CISCO, 2008)

Literature Review• Considerable research has been conducted on buyer-supplier relationship

management or supply management, but most of these studies are conceptual in nature or based on a few case studies. The supply management orientation is very strong with extensive interaction between the suppliers and the OEM.(S B Raju (2008) .

• Focus has moved from financially based traditional performance measure to non-traditional performance measures but both are essential for any corporate organization. (Hamid Reza Ahadi & Hamid Kazemhkanlou ,2014)

• The characteristic essential in an effective SCPM are inclusiveness, universality, measurability and consistency. Initially the supply chain was focused on cost accounting orientations and now it has moved up to the integrative and more proactive approach.(Hamid Reza Ahadi & Hamid Kazemhkanlou 2014)

• (

Literature Review• Product proliferation will have to increase due to changing

markets and customer demographics.(R Dinesh and Shiv ,2013; V. B. , V. R. And J. R.,2013)

• Internal facing performance or inbound logistics measures are to be considered (Changuri , Jin, Hongwei , and Wei,2006 )

• The cultural, social and economic aspect of a country have an influence on the link between automotive supply chain management and performance (Priscila and Luiz ,2012)

• Buyer’s Competitive Priorities in terms of cost, quality, delivery and flexibility of buyers have a impact on operational performance (Priscila and Luiz ,2012;

Literature Review• Identified key factors of differentiation which would ultimately provide

competitive advantage in the automotive industry:• Environmental Factors (Dharamveer and Tarun,2012) ,( Amit , Girish and R.C.

Gupta ,2014;Souresh,Mukhopadhyay and Giri,2014 ) • Government Trade policies (Souresh,Mukhopadhyay and

Giri,2014 ;Dharamveer and Tarun,2012;R Dinesh and Shiv ,2013)• Human metrics ( Amit , Girish and R.C. Gupta ,2014 )• Information sharing ( Amit , Girish and R.C. Gupta ,2014 ), (Miguel, P. L. S.,

Ledur Brito, L. A. L,2012)• External supply chain and Cooperation ( Amit , Girish and R.C.

Gupta ,2014;Priscila and Luiz ,2012 ;Prof. Kvsn Jawahar Babu (2012)• Buyer-supplier relationship( Amit , Girish and R.C. Gupta ,2014 ),

(Souresh,Mukhopadhyay and Giri,2014 ) , (S B Raju (2008) , Yousuf and Most. Moriom 2009)

Gap Analysis

1. The papers are prescriptive in nature, and do not expand upon the possible drawbacks of establishing complex supply chain systems

2. Most of the research in this area is qualitative in nature, and does not provide for a lot of quantitative data

3. There is no proper specification of Role of Managers and Leaders.4. Inadequate coverage of the actual performance metrics5. The analysis done and the conclusions drawn from it aren’t helpful in any way; rather, they

establish well known facts about the Indian automotive market and its unique features6. The papers do not touch upon performance management measures in the Indian context7. There is a lack of data available for the different stages of the supply chain, thus rendering

research upon its efficiency a bit toothless8. Most studies used non probabilistic samples, mainly of American and European companies,

limiting generalization to emerging economies.

Research Objectives

• To identify quantitative and qualitative parameters to measure supply chain management performance.

• To study the effect of Government Regulations, Buyer-Supplier Relationship, Information Sharing, Human Metrics, Environmental Factors, Culture and Economics and Market Demographics on supply chain of Automobile Industry in Indian Context.

Conceptual Framework

Automobile SCM Performance

Government Regulations

Buyer-Supplier Relationship

Information SharingHuman Metrics

Market Demographics

Dependent Variable

Independent Variable

Moderating Variable

References• R Dinesh, Vinod Kumar, Kaustav Sen, Kaushika Madhavan, Amit Saharia and Shiv

Shivaraman (2013)“Building World class automotive supply chain” White Paper, A.T Kearney Limited and Confederationof Indian Institute of Logistics.

• Priscila Laczynski de Souza Miguel and Luiz Artur Ledur Brito (2012)”Supply Chain Management measurement and its influence on Operational Performance”,Journal of Operations and Supply Chain Management 4 (2), pp 56 - 70

• Amit Kumar Marwah, Girish Thakar & R.C. Gupta(2014 )” Determinants of Supply Chain Performance of Indian Manufacturing Organizations”International Journal of Business Research and Management (IJBRM),5 ,14-27.

• Souresh Bhattacharya, Dr. D. Mukhopadhyay and Dr. Sunil Giri (2014)“Supply Chain Management in Indian Automotive Industry”International Journal Of Managing Value And Supply Chains ,5)

• Prof. Kvsn Jawahar Babu (2012),” A Study On Supply Chain Practices With Reference To Automobile Industry”International Journal Of Marketing, Financial Services & Management Research,1)

References• N. Suthikarnnarunai (2008)” Automotive Supply Chain and Logistics Management

"Proceedings of the International MultiConference of Engineers and Computer Scientists,2 19-21 .

• McGraw-Hill/Irwin, McGraw Hills Companies,(2006)• Changuri Ren, Jin Dong, Hongwei Ding, and Wei Wang (2006)“A SCOR-Based

Framework for Supply Chain Performance Management” IBM Page 1130-1135.• S B Raju (2008) “ Supply Management Orientation and its Effect on Buyer/Supplier

Performance: Some Insights from Automobile Industry in India” Strategically managed buyer-seller relationships and performance outcomes,1, Page 20-35.

• Hamid Kazemkhanlou and Hamid Reza Ahadi (2014) “Study of Performance Measurement Practices in Supply Chain Management "Proceedings of the 2014 International Conference on Industrial Engineering and Operations Management ,7-9.

References• Dharamveer Mangal and Tarun Gupta (2012)” Criticality Of Supply Chain In Indian

Auto Industry”Proceedings of the National Conference on Trends and Advances in Mechanical Engineering,YMCA University of Science & Technology, 755-759

• V. B. Mahajan , V. R. Kalamkar And J. R. Jadhav,(2013) “Supply Chain Management in Automobile Industries in India: Conceptualities and Realities” International Recognized Multidisciplinary Research Journal,3.

• Gunasekaran and Ngai, (2004)“Supply Chain Management: Theory and Applications “European Journal of Operational Research,159, 265-528.

• Chen, J., Paulraj, A., Lado, A. (2008) “Inter-organizational communication as a relational competency: antecedents and performance outcomes in collaborative buyer–supplier relationships”. Journal of Operations Management, Vol. 26 No. 1, pp. 45-64.

• Cisco Systems (2008)“Trends in the Automotive Industry and Implications on Supply Chain Management “White paper, Cisco Internet Business Solutions Group (IBSG)