A BTO reference model for high-level supply chain design

Abstract

The automotive industry today faces massive challenges in vehicle discounts and unsold finished vehicle stock due to its outdated build-to-stock (BTS) production system. A build-to-order (BTO) approach can offer a solution to this challenge. Consequently, many innovative concepts have been developed, discussed and piloted in the context of process, structure and product redesign. Nevertheless, all players in an automotive supply network are continuously challenged by the question of which of these concepts is relevant and promising in their individual setting. The main driver of the work presented here is to provide a comprehensive and simultaneously efficient supply chain design process that provides decision support for the transition to a more flexible and stable BTO strategy for all partners in an automotive supply chain. This is accomplished by the provision of a BTO reference model for high-level network and process design. With its classification framework and proposed design procedure, this model acts as a guideline for a supply chain design process for automotive BTO networks that yields cost, time and accuracy benefits. © 2008 Springer-Verlag.