Market Barrier Integrated Approach for Manufacturing Footprint Decision Support

TitleMarket Barrier Integrated Approach for Manufacturing Footprint Decision Support
Publication TypeConference Paper
Year of Publication2015
AuthorsSivakumaran, T, Sprenger, P, Toth, M, Henke, M
EditorKersten, W, Blecker, T, Ringle, CM
Title of ProceedingsSustainability in Logistics and Supply Chain Management
Conference LocationHamburg
ISBN Number978-3-7375-6206-5
Other NumbersISSN (print) 2365-4430, ISSN (online) 2365-5070
KeywordsAutomotive Industry, Manufacturing Footprint Decision, Supply Chain Management, Trade Barriers

The sales potentials for automotive companies in Europe are decreasing, and emerging
markets, such as the BRIC-states or the ASEAN countries, are now in the focus of
European automobile manufacturer’s attention. However, the governments of these
high potential market states try to cap the import-rate of European cars and decrease
the international competition for the local automotive industry by creating
trade barriers. Car manufacturers and suppliers struggle with the planning of following
a local manufacturing strategy and the related set up of regional supply chain
networks. The decision finding process shows different deficits. Especially the high
dynamic of the business environment and the related uncertainties are not in the
scope of current planning processes. Approaches are missing which allow decision
owners to evaluate the impact of changing trade barriers on the supply chain network.
Derived from state-of-the-art analysis, tariff and non-tariff trade barriers will
be classified in the context of opening up new automotive markets. Next to a classification,
an existing simulation-based planning approach for robust manufacturing
footprint decisions is extended by the consideration of the classified trade barriers.