At the receiving end of supply network intervention: The view from an automotive first tier supplier

As companies are increasingly responsible for all ingredients that make up their products, the requirement to increase visibility and exert control over the entire supply network has been identified as key imperatives. However, little research to date has examined the consequences of supply network control on the suppliers that are at the receiving end of it. This paper reports on research into the dynamics of supply network intervention and the effects on the companies that are subject to attempts to control a supply network, particularly in the context of new product development. The paper discusses the case of an automotive component supplier and its role in a specific vehicle development project. The case study shows how the supplier was a victim of its customer's attempt to 'supply chain manage' the project, giving the supplier little control over key activities such as the choice of suppliers of key components and little influence on commercial and technical agreements. The perspectives of both vehicle manufacturer and supplier are debated to reveal the drivers for and problems associated with supply network intervention. The paper discusses the theoretical and managerial implications of the study and concludes by raising some serious questions about the negative effects of intervention strategies.