The effect of strategy on supply chain configuration and management practices on the basis of two supply chains in the Hungarian automotive industry

Supply chain management (SCM) usually goes beyond company boundaries. Cooperating parties are required, who decide to work together. The way this cooperation evolves depends on the strategies and practices of the parties. In this paper, we examine the connection between strategy and SCM. Our objective is to analyze how the strategy of focal companies determines the supply chain (SC) configuration and management practices used between SC parties. The analysis is based on 17 interviews within two SCs from the Hungarian automotive industry, where SCs are defined through the assemblers (Audi and Suzuki) as focal companies. Our results support the proposition that the connection between strategy and SCM (configurations and practices) is very strong. It is underlined not only by the comparison of the two SCs but can also be detected in the strategic change at one of the focal companies which resulted in SC changes, as well. Besides the main objective a detailed view is provided on the past, present and future of the Hungarian automotive industry.