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Early Supplier Involvement

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Early Supplier Involvement
ANALYZE THE CHALLENGE AND OPPORTUNITY REGARDING SUPPLY CHAIN ISSUES OF AUTOMOTIVE INDUSTRY * A brief explanation of the problem * Aim of your term paper * What questions will be answered in the term paper * A brief outline of current research * Relevance of the term paper topic * The research process
Your term paper’s main body should also have the following points: * Interpretation of primary literature * Methodological problems * Current state of research * Your viewpoint
Challenges:
The basic economics are changing for the American automobile industry at an alarming rate. Only a few years ago, decisions on product lines, engine platforms, style platforms, safety improvements, marketing development, and fashion were made for consumer demand out five to seven years. This year, we are shocked to find original equipment manufacturers (OEMs) implementing dramatic production and model changes to be made in only one to two years for simple survival.
Driven by consumer demand for fuel efficiency and alternative fuel vehicles, the automotive supply chain has been deeply affected by the cuts in production of SUVs and trucks, plant closures, and shifts in production location. The industry is adapting through consolidations, mergers and acquisitions, relocations, and expansions. Automotive suppliers are in the throes of shifting production to meet the needs of original equipment manufacturers (OEMs). With the spotlight on the changes in the automotive industry, incentives often factor into the decision-making process. 1.) Globalisation: Recent emphasis on global climate change is increasing pressure on automotive executives to make the right decisions in many areas, including R&D and manufacturing. In fact, emission-level targets, currently in question, threaten to alter the entire structure of the auto industry. 2.) These challenges hit an industry already plagued with high costs, low profit margins, and accelerating

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