New paradigm of steel mills in the supply chain of automotive sheets

Abstract

PurposeTo provide new roles of steel mills with desirable business strategies in the supply chain of automotive steel sheets.Design/methodology/approachThe characteristics of the relationship between automakers and steel mills, which aim to provide different patterns according to regional markets, are classified into the customer‐supplier relations in the regions of North America and Japan. Extended roles of steel mills with expected responsibilities are considered in the automotive supply chain, not just raw material suppliers.FindingsProvides new procurement programs of automakers, indicating what can be found there for new paradigm of steel suppliers and how new procurement programs can change. Emphasizes the necessity of developing more updated and functional business models of steel mills in the value chain.Practical implicationsSteel mills have to extend their conventional roles to downstream processing in the automotive steel supply chain, in order to maintain cooperative and interdependent relations with OEMs.Originality/valueThis paper fulfils extended roles of automotive steel suppliers in supply chain management and offers collaborative partnerships to steel mills and automakers.