Journal
IEEE TRANSACTIONS ON ENGINEERING MANAGEMENT
Volume 59, Issue 1, Pages 52-64Publisher
IEEE-INST ELECTRICAL ELECTRONICS ENGINEERS INC
DOI: 10.1109/TEM.2010.2087762
Keywords
Automotive; case-study research; just-in-sequence (JIS); supply chain risk; supply networks (SNs)
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Today's automakers are under an enormous price and cost pressure arising from both increasing competition and complexity of operations. One way to deal with this challenge is to outsource value creation to the supply network (SN), which then assumes the responsibility for producing variant-specific modules and delivering them just-in-sequence (JIS). This results in tightly coupled buyer-supplier relationships that operate with short reaction times and are characterized by high time dependency and minimal buffers. It increases the risk exposure of buyers to disturbances in their SNs and failures propagate quickly, causing production disruptions. Based on data collected at 14 car-manufacturing plants located in Germany, this research provides an overview and exploratory evidence of current JIS market practice and proposes ways of actively managing the risks inherent in JIS SNs.
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