Implications for Optimisation of the Automotive Supply Chain Through Knowledge Management

During the past two decades, the trend towards globalisation and the continual downward pressure on operating costs to remain competitive has prompted numerous manufacturers to adopt a radical approach to analyse and realign their cost base. Nowhere has this trend has been more prominent than in the automotive industry whereby several manufacturers have switched production to countries with a lower cost base to benefit from FDI incentives from an enlarged EU. Although savings can quickly be realised on an operational level by switching production, more critical to the overall success is the adoption of a holistic approach which encompasses the entire automotive supply chain and considers the integrated and complex nature of the production process. The aim of this paper is to assess the case study of the Slovak automotive sector from a knowledge management perspective. The purpose is to identify the importance of implementing a robust knowledge sharing process as a means of identifying and integrating key component suppliers. Moreover the process will underline the crucial role of knowledge management as a core component for the success of Just-in-Time production and as a key driver to enable an organisation to fully capitalise upon all elements of the value chain.