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Supply Chain Management in The Brazilian Automobile Industry: Bottlenecks for Steadier Growth

Taking the Lean Production System as the reference model, this paper analyses the supply chain management approach and the relationship between private and public sectors in the Brazilian automobile industry.

Through a case study conducted from October 2006 to October 2008 in a private owned automaker, two bottlenecks in this Brazilian industrial sector are identified: (1) Emphasis on coordination rather than integration in supply chain management; and (2) Insufficient channels of communication between private and public sectors, resulting in inefficient policies to nurture automakers with low production volume.

The purpose of this study is to identify some of the bottlenecks for achieving a higher level of economic growth in the Brazilian automobile industry, by means of a  case study conducted in a private owned automaker, which assembles Mitsubishi light commercial vehicles.

The automobile industry was chosen for study because this sector provides a rich ground for the analysis of inter-firm relations and the relevance of adopting an integrative approach towards supply chain management.

Additionally, the automobile industry plays an important role in the Brazilian economy. In 2007, Brazil was seventh in worldwide vehicle production, with 2,977,150 units and this industrial sector was responsible for 18% of the country’s industrial GDP. In 2005, the number of direct and indirect jobs generated by the sector was estimated in 1.5 million.
Source: IJLT
Author: Waldemiro Francisco Sorte Junior

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