Performance Measurement System for Automotive Spare Parts Supply Chain: A Categorization

Abstract

This paper provides a categorization approach that encompasses the required categories and subcategories for the performance measurement of automotive spare parts supply chain, with a focus on independent distributor belonging to the independent channel. In fact, the particular characteristics of spare parts have led to the emergence of many scientific contributions related to inventory management and demand forecasting methods. However, little research has focused on the measurement of the spare parts supply chain performance despite its big importance. In this paper, we attempt to fill this gap in the literature, in particular for the automotive aftermarket, by proposing a framework that will lead to the measurement of the overall automotive spare parts supply chain performance.

Forecasting vehicle's spare parts price and demand

“…Automotive aftermarket is defined by Achetoui et al (2019) as the process of manufacturing, distribution, maintenance, repair of SPs to elongate the vehicle life for end customers, the automotive market is fluctuating according to the technological advancement of automotive, the SPs markets and the competition between agencies, this would also affect supply chain planning. Furthermore, Lorentz et al (2011) explain that aftermarket service for SPs increased enormously in the last ten years with 150 $ billion around the world and a rising average of 5–9% yearly.…”

“…These two streams contain the original equipment manufacturer (OEM), dealers, authorised repair, customers, etc. Achetoui et al (2019) divide equipment manufacturers into first OEMs, second manufacturer of equivalent SPs; those have the same features as the original SPs, third other manufacturers including small and medium size companies which manufacture non-brand, less price and low quality SPs. Achetoui et al (2019) also explain the relation between car manufacturers and OEMs depending on an agreement that the car manufacturers sell SPs until the agreement is finished, afterwards OEMs can manufacture and sell SPs to car manufacturers and other distributers.…”

“…Achetoui et al (2019) divide equipment manufacturers into first OEMs, second manufacturer of equivalent SPs; those have the same features as the original SPs, third other manufacturers including small and medium size companies which manufacture non-brand, less price and low quality SPs. Achetoui et al (2019) also explain the relation between car manufacturers and OEMs depending on an agreement that the car manufacturers sell SPs until the agreement is finished, afterwards OEMs can manufacture and sell SPs to car manufacturers and other distributers. The post-product life cycle for SPs is organized by Inderfurth and Mukherjee (2008) through three choices; producing a large amount of SPs with the final stage of end-product manufacturing, additional production for SPs during the service period and finally using SPs of used products.…”

“…Van der auweraer et al . (2019) categorize SPs according to demand patterns into intermittent demand, erratic and lumpy, while aftermarket parts are the parts manufactured by the original manufacturer and other companies, with different level of quality (Achetoui et al , 2019).…”

Spare parts inventory routing problem with transshipment and substitutions under stochastic demands

“…The procedure of the quality control can take up to over 15 days and even longer if the Ministry's departments decide to rely on laboratories to analyse further the supplied parts [14,15]. Moreover, spare parts are often stored until the results are published, which increases storage costs and therefore renders emergency supplies significantly long and expensive [15].…”