Reconfiguring Supply Chains for a Global Automotive Industry

As the industrial landscape is altered by emerging markets like China and India and the bankruptcy of Detroit automakers and their parts suppliers, motor vehicle firms are reconfiguring their supply chains in order to be cost-competitive on a global basis. Backup capacity and cross-docking are being incorporated into just-in-time delivery systems in an attempt to keep car prices affordable for first-time buyers. This will entail a rebuilding of the global alliances between automakers and key component suppliers that lead to stringent quality standards, adhered-to-delivery schedules, and productivity increases which are needed to keep operating, procurement, and distribution costs under control. DOI: 10.4018/978-1-4666-2461-0.ch015