Deisigning a Sapply chain Complexity Model and its Impact on the Financial Performane of Automotive Companies (Case Study of Saipa Automotive Group)

Ali akbar Sasani ¹ ( PhD Candidate, Department of Industrial Management, Ab.c. Branceh, Islamic Azad Univrsity, Abhar, Iran )
Hossein Azimi ² ( Associate Professor, Department of Business Administration, Faculty of Humanities, University of Zanjan, Zanjan, Iran )
Abdolla Nazari ³ ( Assistant Professor, Department of Management, Ab.c. Branch, Islamic Azad University, Abhar, Iran )

Submited date : 2024-01-30 Accepted date : 2024-05-15

Keywords: JEL: K12, K13, K14,

Abstract :

Abstract

Managing complexities and risks is critical for the survival of any organization in a competitive environment, as they mainly affect the supply chain. In the qualitative dimension, the statistical population of this research is the experts of Saipa Automotive Group, and in the quantitative and qualitative dimension, the statistical population of this research is all managers and employees of Saipa Automotive Group, which are 50,000 people, using Cochran's formula, 384 people for the quantitative part and 17 Some of Saipa's automotive industry experts were selected for the quality department. On the other hand, in order to analyze the data in the qualitative part, the method of interview and manual coding was used, and in the quantitative part, Smart PLS and SPSS software, including confirmatory factor analysis tests and structural equations, were used in the path analysis method. The results of the research show that in the part Qualitatively, 33 factors were identified in 2 dimensions of structural complexity and dynamic and behavioral complexity.

​Keywords: supply chain complexity model, on financial performance, structural complexity, dynamic and behavioral complexity, Saipa Automotive Group

JEL: K12, K13, K14

 

Introduction

A supply chain is a complex network of business entities involved in the upstream and downstream flows of products and/or services, along with related finance and information. Supply chain management (SCM) includes the systematic and strategic coordination of these flows within and between companies in the supply chain with the aim of reducing costs, improving customer satisfaction, and gaining competitive advantage for independent companies and the entire supply chain. A supply chain that operates in a dynamic and uncertain environment is definitely a complex system with different companies, a large number and variety of relationships, processes and interactions between companies and within companies, dynamic processes and interactions that involve many levels of the system and a large amount of information.

 

Litrature Review

Stephen Hawking (1942-2018) states, "I think the 21st century will be the century of complexity." VUCA (Volatility, Uncertainty, Complexity and Ambiguity) environments are becoming more and more challenging for companies to deal with, so it is essential to keep these factors in mind while managing and improving your performance. One of the VUCA factors is the complexity that characterizes any interconnected system and network such as a supply chain (Maka et al., 2016, Rahum et al., 2019).

 

Research methodology

In any research, the selected method to collect data and analyze them results from the objectives and questions of the research, so to provide a model of the complexity of the supply chain in the Saipa automotive industry in the first stage of the research, the research method used is the interview method. Because this research is trying to provide a model and the purpose of this method is to identify the most complete factors for modeling.

In this regard, the current research is based on the purpose, considering that the primary audience of this research is the scientific community and researchers, and the purpose of doing it is to create new knowledge and provide new knowledge of the complexity of the supply chain in the Saipa automotive industry.

 

Result

According to the results of the hypothesis test of the present research, it can be concluded that: the supply chain of the automobile industry consists of several companies that directly or indirectly produce main and secondary equipment. Every car needs different components, from the small nuts and bolts that hold the seat together with the frame, to larger parts like tires. As a result, automotive supply chains have added complexity on both the supplier and manufacturer sides. Supplier inefficiencies can be very expensive for Saipa because the industry often uses JIT production. Delayed delivery of parts or delivery of poor quality can bring the entire production line to a standstill. A high intensity of sub-dimensions of complexity is observed on the supplier side. In production, the use of continuous production lines makes it necessary that all factors required for production work well.

 

Discussion

The automotive industry has many and complex suppliers. As a result, they cannot be easily managed due to difficulties in supplier integration and ensuring traceability across levels. Supply reliability is difficult to manage, but forecasting accuracy can be greatly improved by big data analysis. The automotive industry involves a large amount of automation, resulting in machine breakdowns and changes in product design becoming an important part of the supply chain disruption. These complexities can now be easily managed through predictive maintenance and product design software

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