Abstract

Purpose
In the present study, the authors have explored the research questions, “How do companies in the
engineering and automobile manufacturing sector in India determine the coordination strategy with
their suppliers?” and “Can we develop a framework which helps the company adopt a particular
coordination strategy?” The authors also aimed for developing a generalizable theory of supply chain
coordination (SCC) strategy.

Design/methodology/approach
The authors have studied upstream SCC practices at eight Original Equipment Manufacturers (OEMs)
in the Indian engineering manufacturing and automobile sector and identified 11 types of SCC in three
categories of suppliers, namely large, medium and small. Each SCC is characterized by the category of
items as the authors found the OEMs follow different strategies for different types of items. Initially,
the authors started the study with the objective of strategy discovery, and later on, they prescribed a
strategic framework based on the consolidated knowledge that they gathered at the discovery phase.
The authors propose a SCC strategy framework consisting of four dimensions, i.e. time horizon, the
formality of engagement, price and volume for the upstream supply chain. With the framework, the
authors have identified the driving factors for choosing a particular strategy. The authors have found
both OEMs and suppliers in India prefer to have a long-term relationship for building trust, which
helps both the OEMs and the suppliers to go the extra mile when needed. Apart from large suppliers
supplying technology and proprietary items, OEMs prefer to have an informal relationship so that
they enjoy flexibility and attain agility. The price and volume dimensions are dependent on who
enjoys more bargaining power.

Findings
The authors propose a SCC strategy framework consisting of four dimensions, i.e. time horizon,
formality of engagement, price and volume for the upstream supply chain. With the framework, the
authors have identified the driving factors for choosing a particular strategy. The authors have found
that both OEMs and suppliers in India prefer to have a long-term relationship for building trust, which
helps both the OEMs and the suppliers to go the extra mile when needed. Apart from large suppliers
supplying technology and proprietary items, OEMs prefer to have an informal relationship so that
they enjoy flexibility and attain agility. The price and volume dimensions are dependent on who
enjoys more bargaining power.

Originality/value
This study made a substantial contribution to the literature by presenting a SCC strategy framework,
ISCM (Indian Supply Chain Coordination Model). To the best of the authors’ knowledge, in the
literature, there was no concrete framework for analyzing the coordination strategy specific to the
Indian situation. The framework proposed has been derived based on empirical findings; hence, it is
not a conceptual one. The authors also developed a supply chain typology. This study made a
substantial contribution to the literature by presenting a SCC strategy framework, ISCM. To the best
of the authors’ knowledge, in the literature, there was no concrete framework for analyzing the
coordination strategy specific to the Indian situation. The framework proposed has been derived
based on empirical findings; hence, it is not a conceptual one. The authors also developed a supply
chain typology.

Q1. Discuss the framework of SSC in automobile sector in India?

Q2 Discuss the contribution of the proposed framework in SSC strategy?