Developing lean and agile automotive suppliers manufactures supply chain

Abstract

Purpose _ The objective of this study is to find out what is important to consider when developing a supply chain in automotive suppliers manufactures, what is required in order to establish a supply chain orientation and how lean and agile can be used as process strategies in order to improve supply chain performance.Design/methodology/approach _ In order to build an empirical framework for using both lean and agile strategies in automotive suppliers manufacture supply chain management illustrative examples are provided from Iranian automotive suppliers manufactures (IDEM Co, Irankhodro foundry Co, Iranian Piston Co) setting describing the patient flow and planning processes.Findings _ Supply chain management has potential to work well as a philosophy for automotive suppliers sector. However, it should not only be about the use of the concept of lean in this kind of companies, as in fact is the case in practice today. It is rather about organizing for quick response and flexibility in a hybrid strategy through combining lean and agile process strategies. This can only be done if a systems approach is applied together with a strategic orientation, where cooperative efforts by the supply chain members should synchronize and converge operational as well as strategic capabilities into a unified whole.Practical implications – The analysis in the paper underlines the importance of focusing on both agility and leanness combined. Automotive factory suppliers systems that introduce such an approach, as opposed to only relying on lean strategies, could gain both competitive advantages and improved performance.Originality/value – In automotive suppliers manufactures, even more so than in the other manufacturing industry, containment of costs without sacrificing quality is important. This paper applies SCM techniques, tools, lean and agile concepts that have not been used previously with together for Iranian automotive suppliers manufactures