Automotive Supply Chain Management Analysis and Performance Improvement

This paper examines the modernisation of automotive supply chains and analyses its effectiveness in terms of the localisation process in Russia. With respect to the external economic and political instability, the choice of the most effective supply chain strategy is a challenging task for global car manufacturers. Much research has been conducted both in Russia and overseas on the complexity of automotive supply chain management. However, a few studies have considered the current situation in the Russian automotive market. The purpose of this study is to analyse modern supply chain management strategies in the automotive industry and describe methods for performance improvement. The evaluation is made using the analysis of scientific literature, the Russian automotive market research, and comparative analysis based on the comparison of the organization of local production and import of finished goods costs. The strategic advisability of further investments in local production is assessed with the help of the analytic hierarchy process. The results of the study may help global car manufacturers optimise current logistics structure and make a decision regarding further supply chain changes.