Abstract.doc
Dissertation Title:
The Effect of Supply Chain Relationships on SMEs in the Automotive and the Food Industries
Author:
Nuanprae Patramai
Program:
School/Department:
Master of Science in Supply Engineering and Logistics
Warwick Manufacturing Group
School of Engineering
University:
University of Warwick, U.S.A
Year:
2007
Dissertation Advisor:
Mrs. Morag Malins
Abstract
Small and Medium Enterprises (SMEs) play a critical role as the fundamental industrial units of the UK economy. A number of them are the second or the third tier suppliers in manufacturing industry. Despite the importance of SMEs in the supply chain, they are likely to have limited resources to implement supply chain management (SCM) to develop their performance in order to improve customer service level and catch up with large companies. Collaborative support from Original Equipment Manufacturers (OEMs) is required to assist SMEs to improve their capabilities. In this study, the SCM situations of the SME and the OEM in the automotive and food industries are studied, focusing in particular on the supplier-customer relationships to provide overview of these relationships within these two industries. Furthermore, supplier development activities that OEMs could adopt to improve SMEs’ capabilities are identified. The adoption of SCM practices by SMEs and OEMs are investigated. Lastly, the differences and similarities of the situation in the automotive industry and the food industry are also compared.
Results indicate that both SMEs and OEMs in these two industries implement various SCM practices. However, the supplier-customer relationship in both the automotive and the food industries are rather uncooperative, with the customers having the dominant role over the supplier. Lack of team work, trust, joint investment, and information sharing are found in both industries. Furthermore, the customers place low importance on joint problem solving and direct involvement in supplier development, while the supplier hesitates to ask for assistance from customers. Recommendations are made for customers and suppliers to
09-Abstract.doc
establish a closer relationship, be more trusting and engage in information sharing among members of the supply chain. Changes in attitudes of the OEMs concerning supplier development are recommended in order to ensure an improvement in the performance of the entire supply chain.