Procurement in Automotive Industry

Abstract

The automotive industry is certainly one of the largest and dominant industry in the world being highly dependent on supply chains management. Customer requirements and technological development are changing rapidly so the need of automation in supply chain management is unavoidable. Procurement in automotive industry it is a key process closed linked with product management and production. The transformation generated by industry 4.0 is pushing also procurement to next level of automation adding value chain truth cost reductions, transparency and smart contracts. Global semiconductors shortage generated disruption in automotive industry supplies chain management and high sales decreases with important profit loses. The study aim is to determine procurement best practice for sustainable and efficient supply chain. In future procurement department should play a fundamental part in innovation management by focusing on efficiency and automation of operation tasks including negotiations. It is recommended to have long term strategies regarding good relationship between tier suppliers and smart contracts with OEM.