Supplier involvement in automotive component design: outsourcing strategies and supply chain management

In this paper the analysis is drawn on the motivations, modalities and consequences of supplier involvement in automotive component design. Outsourcing decisions affect the set of core competencies of buyer and supplier and, given certain circumstances, induce a migration of competencies from OEMs to suppliers. An in-depth exploratory multiple case study on a major European car maker and two of its suppliers revealed that this migration of competencies should not threaten the leadership of car makers within the supply chain if it is associated with (1) a strong competence of the car maker as system integrator and (2) a new way of conceiving supply chain management.