Automotive Manufacturers and Their Stumble from one Supply Crisis to Another: Procurement Departments Could be the Game Changer by Using Data Analytics, but…

Abstract

With this paper, we examine the use of data analytics for crisis management in automotive procurement departments. Possible business values of data analytics were part of numerous research approaches. Nevertheless, automotive manufacturers are repeatedly confronted with supply chain disruptions. Procurement departments have a central role within supply chains and are predominantly responsible for stable supply processes. Taking into account the potential of data analytics, such crises should be avoided or at least mitigated. Thus, there is the question, why data analytics cannot currently help automotive procurement departments by facing such crises. We therefore evaluate problems and obstacles by implementing and using data analytics in automotive procurement departments. Therefore, we talk to experienced procurement experts for evaluating practical insights. With our findings we provide practical insights and applicable recommendations for action with the goal of helping procurement leaders to better leverage data analytics for meeting current and future crises.