A quantitative assessment of the collaborative production planning benefits in the automotive supply chain

The Italian automotive industry has a complex, articulated supply chain that splits in two different branches: the original equipment manufacturing (OEM, so new products) and the independent aftermarket (IAM, where spare parts are traded). The complexity of the relationships among the different actors, the high product variety with shortened life-cycles and the increased competition pushed companies to look for new, innovative solutions that allow them to survive in such competitive environment. The supply chain management practice focuses on the implementation of solutions allowing firms to face the increasing complexity of the current industrial scenario. In this context, collaborative practices can help enterprises to reduce the main logistics costs. The main objective of the work is to develop a quantitative model aimed at assessing the economic benefits stemming from the implementation of the collaborative production planning process in the automotive industry. Through case studies, a quantitative model that considers three actors in the automotive supply chain of new products is developed. Two scenarios are analysed: the AS-IS case, in which companies issue orders, and the TO-BE case, in which they exchange their production plans. The results show that the collaborative production planning reduces the overall level of inventories as well as the probability of stock-out (and the related costs) and the administrative costs, thanks to a lower number of exchanged documents; differently, it does not impact the handling costs, and it could lead to an increase in the transportation costs.