Strategic Partnerships in the Automotive Industry Defining Collaboration Approaches in Volvo Cars' Parts Supply and Logistics

Abstract

The nature of the automotive industry continues to get more complex. Ensuring access to parts and components both for the production of new cars and servicing existing cars is critical. This thesis explores what strategic partnerships are and how to incorporate them into the automotive spare parts sector. In collaboration with Volvo Cars Part Supply & Logistics and their Supplier Relationship Management team, the current approaches and supplier dynamics are investigated, with input from various other stakeholders. Furthermore, the thesis delves into what the future of partnerships should develop towards. Findings from the empirical data show the importance of transparency, give and take dynamics, trust, and lastly, long-term planning. Moreover, some of the common challenges are also brought to light. These are a lack of communication, information sharing, and a missing internal strategy. Based on this a conceptual model was created to visualize the key findings as a recommendation for a future strategic direction. Although this thesis was written in collaboration with Volvo Cars it contributes to the understanding of partnerships in the automotive sector, especially in regards to spare parts.