A conceptual model of procurement management for new products in the automotive industry
Abstract
The automotive industry is one of the most dynamic and challenging business areas in the European Union (EU) and wider. It implies a complex supply chain with a turnover of 7% of EU GDP (gross domestic product) and 6.1% of total EU employment and has an important multiplier effect on the economy. Given the apparent impact of automotive companies on the economy, they are under constant pressure to review and improve their production processes, business activities, and market position. It can be said that each process that supports the creation of new value in the automotive industry is of equal importance. The focal point of this paper is the procurement management process for new products. Considered procurement is related to the components of the products purchased for the first time. These procurements have a direct impact on business expenses. Therefore, the paper proposes a conceptual model to improve the procurement of new products components. The model is developed following mode...rn control theory and based on the feedback loop principle. All elements of a feedback loop (reference, system, sensor, comparator, and controller) are described. The model development is based on a case of a large company from the automotive industry in the Republic of Serbia.
Keywords:
procurement management / new products / feedback control model / conceptual model / automotive industrySource:
Interdisciplinary Management Research XVIII (IMR 2022), 2022, 62-75Publisher:
- Josip Juraj Strossmayer Univ Osijek, Osijek
Collections
Institution/Community
Fakultet organizacionih naukaTY - CONF AU - Đorđević Milutinović, Lena AU - Cvijović, Nikola AU - Milutinović, Radul AU - Stošić, Biljana PY - 2022 UR - https://rfos.fon.bg.ac.rs/handle/123456789/2328 AB - The automotive industry is one of the most dynamic and challenging business areas in the European Union (EU) and wider. It implies a complex supply chain with a turnover of 7% of EU GDP (gross domestic product) and 6.1% of total EU employment and has an important multiplier effect on the economy. Given the apparent impact of automotive companies on the economy, they are under constant pressure to review and improve their production processes, business activities, and market position. It can be said that each process that supports the creation of new value in the automotive industry is of equal importance. The focal point of this paper is the procurement management process for new products. Considered procurement is related to the components of the products purchased for the first time. These procurements have a direct impact on business expenses. Therefore, the paper proposes a conceptual model to improve the procurement of new products components. The model is developed following modern control theory and based on the feedback loop principle. All elements of a feedback loop (reference, system, sensor, comparator, and controller) are described. The model development is based on a case of a large company from the automotive industry in the Republic of Serbia. PB - Josip Juraj Strossmayer Univ Osijek, Osijek C3 - Interdisciplinary Management Research XVIII (IMR 2022) T1 - A conceptual model of procurement management for new products in the automotive industry EP - 75 SP - 62 UR - conv_2744 ER -
@conference{ author = "Đorđević Milutinović, Lena and Cvijović, Nikola and Milutinović, Radul and Stošić, Biljana", year = "2022", abstract = "The automotive industry is one of the most dynamic and challenging business areas in the European Union (EU) and wider. It implies a complex supply chain with a turnover of 7% of EU GDP (gross domestic product) and 6.1% of total EU employment and has an important multiplier effect on the economy. Given the apparent impact of automotive companies on the economy, they are under constant pressure to review and improve their production processes, business activities, and market position. It can be said that each process that supports the creation of new value in the automotive industry is of equal importance. The focal point of this paper is the procurement management process for new products. Considered procurement is related to the components of the products purchased for the first time. These procurements have a direct impact on business expenses. Therefore, the paper proposes a conceptual model to improve the procurement of new products components. The model is developed following modern control theory and based on the feedback loop principle. All elements of a feedback loop (reference, system, sensor, comparator, and controller) are described. The model development is based on a case of a large company from the automotive industry in the Republic of Serbia.", publisher = "Josip Juraj Strossmayer Univ Osijek, Osijek", journal = "Interdisciplinary Management Research XVIII (IMR 2022)", title = "A conceptual model of procurement management for new products in the automotive industry", pages = "75-62", url = "conv_2744" }
Đorđević Milutinović, L., Cvijović, N., Milutinović, R.,& Stošić, B.. (2022). A conceptual model of procurement management for new products in the automotive industry. in Interdisciplinary Management Research XVIII (IMR 2022) Josip Juraj Strossmayer Univ Osijek, Osijek., 62-75. conv_2744
Đorđević Milutinović L, Cvijović N, Milutinović R, Stošić B. A conceptual model of procurement management for new products in the automotive industry. in Interdisciplinary Management Research XVIII (IMR 2022). 2022;:62-75. conv_2744 .
Đorđević Milutinović, Lena, Cvijović, Nikola, Milutinović, Radul, Stošić, Biljana, "A conceptual model of procurement management for new products in the automotive industry" in Interdisciplinary Management Research XVIII (IMR 2022) (2022):62-75, conv_2744 .