Supply Chain Development – Model, Opportunities, and Challenges

AbstractOver recent years a few automobile manufacturers, that ca be OEM (Original Equipment Manufacturer, have migrated or expanded their activities to non-traditional regions of Brazil seeking gains in productivity. With this geographic change of the industry, traditional tier one suppliers have also relocated or expanded their activities to new sites seeking better results of quality, costs and time. The dependency of tier one suppliers in transporting parts and components from distant places may result in unfavorable conditions due to production and logistics costs, which lead to non-optimized levels of quality and generally poor business results. This paper proposes a model for development of the supply chain in order to increase the competitiveness of potential local suppliers of tier one and OEM companies (tier 2+ suppliers). The model, applied to the automotive sector, encompasses the identification of demand, analysis of availability, identification of technological partners, and development of business plans. The described model is applicable to any industrial enterprise that seeks to improve quality, costs, and financial results while reinforcing the sustainability within a product's life cycle