Supply chain modularisation: Cases from the French automobile industry

In recent years car manufacturers have been gradually moving from the procurement of discrete parts to the procurement of modular systems. However, research into this development has not yet sought to identify how such a shift is likely to influence the operations of key suppliers within a modular supply chain and more specifically, how such suppliers are likely to interpret their respective approaches to modular provision. The aim of this research is to address these issues using a case-based approach of a modular supply chain currently engaged in supplying cockpit modules to a French car manufacturer. The findings accord broadly with research undertaken in the United Kingdom Doran, D., 2004. Rethinking the supply chain: an automotive perspective. International Journal of Supply Chain Management 9(1), 102-109 which indicated that accommodating modular supply is both complex and challenging and requires a discrete set of competencies that move beyond traditional approaches to product procurement. Specifically the findings suggest that strategies commensurate with supplying on a modular basis are likely to involve an increased degree of risk sharing, a strategy for acquiring a cohesive set of supply chain management capabilities and a readiness to dispose non-core activities while acquiring those activities that will enhance modular capabilities. © 2006 Elsevier B.V. All rights reserved.