Modelling the consequences of a strategic supply chain initiative of an automotive aftermarket operation

Describes the use of a decision support system (DSS) in part of a strategic supply chain initiative of an international automotive aftermarket organisation undertaken in 1996–97. The strategic initiative consisted of four distinct stages; a review of the current state, definition of the future vision, development of the operational blueprint and its implementation. A simulation based decision support system was developed by the academic team to aid the decision making in the definition of the future vision. The paper documents, models and simulates the development of supply chain structures in the automotive aftermarket sector in relation to the historical, present and predicted future market trends. The characteristics of the supply chain in terms of numbers of players, consolidation, market and customer requirements are given. Suitable measures of performance (MOPs) are defined and classified as either market qualifiers or order winners. Aggregate MOPs include quality, service time, service level and total logistics costs. Sample simulation results from the DSS are outlined.