An automotive supply chain model for a demand-driven environment

Abstract

The purpose of this article is to demonstrate the development of a supply chain model for the automotive industry that would respond to changing consumer demand. Now more than ever, businesses need to improve the efficiency of their supply chains in order to maintain a competitive advantage. The principles of lean manufacturing and just-intime (JIT) inventory control that were renowned for helping companies like Toyota, Dell and Walmart to rise to the top of their respective industries are no longer adequate. Leading companies are applying new technologies and sophisticated analytics to make their supply chains more responsive to customer demand. This challenge is driven by fierce competition, fluctuating market demand and rising customer requirements that have led to customers becoming more demanding with increased preferences. The article is based on theoretical reviews and suggests guidelines for the implementation of an automotive supply chain model for a demand-driven environment.