Identification and evaluation of modularization practices in an automotive supplier: progressivity analysis of transferring activities in the supply chain

Abstract

The automotive value chain has more and more been making room to a strategy of which activities of product design and production have been transferred to the module suppliers. The transfer of value-added activities occurs from assembler to the module suppliers. The former assume the role of integrators within the supply chain. The supply chain participants have started to strengths their competencies in order to obtain advantages in the economy of scale and scope. In this context, the present work aims at investigating the valued-added transfer between first and second tiers of automotive supply chain in new product development and production. The work was carried out from an evaluation of a supplier with regard to modularization. The theoretical background considers the concepts of integrated and modular architecture as well as the progressiveness of competencies among suppliers. It adopts single cased as the research methodological approach. The literature points out that the process of modularization either in product development or in production offer benefits for both sides: assemblers and suppliers. The results from the investigated supplier shows inherent benefits due to the acquisition of new technologies that enable an increase of technical and management learning in projects of new products. Therefore, it demonstrates that in this modularity environment, the potential of value-added transfer is associated to the level of progressiveness of competencies that are incorporated to deliver module solutions to assemblers; the investigated supplier can be categorized in an “embrionary” stage.