Intermediation in downstream automotive supply chains - A review of the role of internet technology

Increasing competitiveness of the automotive industry has resulted in fundamental changes to the industry. Significant consolidation has aimed at improving organisational positioning to take advantage of economies of scale and greater upstream supply chain coordination. Significant success has been achieved with upstream activities but less success has been achieved with downstream activities. The application of communications technology to downstream activities has not been as significant as that of other sectors (e.g., electronics and food industries). This study aims to understand the challenges faced with regards to communication between OEMs, automobile dealers and consumers. It is based on three case studies focusing on different aspects of operation - lead management, car finance and reverse logistics. The study found that internet technologies play a significant part in improving efficiency and information visibility in downstream operations. It also suggested that the operational 'weak link' in the supply chain can be addressed through technological investment and relationship development between OEMs and automobile dealers. Copyright © 2008 Inderscience Enterprises Ltd.