Modelling the drivers of responsiveness of automotive supply chain using an integrated fuzzy DEMATEL-ISM approach

Abstract

Purpose The automotive industry appears to overcome much of its obstacles, despite the constant struggle facing COVID-19. The pandemic has resulted in significant improvements in the habits and conduct of consumers. There is an increased preference for personal mobility. In this dynamic environment with unexpected changes and high market rivalry, automotive supply chains focus more on executing responsive strategies with minimum costs. This paper aims to identify and model the drivers to the responsiveness of automotive supply chain. Design/methodology/approach Seventeen drivers for supply chain responsiveness have been identified from the extensive literature, expert interview. An integrated methodology of fuzzy decision-making trial and evaluation laboratory–interpretive structural modelling (DEMATEL–ISM) is developed to establish the interrelationship between the drivers. The cause–effect relationship between the drivers was obtained through fuzzy DEMATEL technique, and a hierarchical structure of the drivers was developed using the ISM technique. Findings The result of the integrated methodology revealed that strategic decision-making of management, accurate forecasting of demand, advanced manufacturing system in the organisation and data integration tools are the critical drivers. Research limitations/implications This study has conceptual and analytical limitations. In this study, a limited number of drivers are examined for supply chain responsiveness. Further research may examine the role of other key performance indicators in the broad field of responsiveness in the automotive supply chain or other industry sectors. Future study can uncover the interrelationships and relative relevance of indicators using advanced multi-criteria decision-making methodologies. Originality/value The authors proposed an integrated methodology that will be benefitted to the supply chain practitioners and automotive manufacturers to develop management strategies to improve responsiveness. This study further helps to compare the responsiveness of the supply chain between various automotive manufacturers.