Supply chain and digital transformation in the automotive industry

Abstract

The aim of this thesis is to fill a gap in the literature by evaluating how digitalisation transforms the automotive industry in Germany, Croatia and Bosnia and Herzegovina as the countries move from Industry 3.0 to 4.0. To achieve the research aim, secondary and primary data were collected through multiple choice and open-ended survey questionnaires. The questionnaires were distributed to respondents in three automotive firms and suppliers (Thyssenkrupp Presta, AD Plastik and ASA Prevent). They were recruited using convenience and chain referral samplings. Out of 800 questionnaires, 142 participants responded. Multiple-choice responses were analysed using correlation, regression and cross-tabulation analyses. Open-ended texts were evaluated using thematic analysis. The thesis revealed the following findings: firms assist their suppliers in improving digitalisation (backward and upstream supply chain collaboration, including risk sharing and customer focus). Firms are in stage three out of four supply-chain automation stages. However, they are currently in stage four out of six digitalisation stages. Both collaboration and digitalisation levels affect product quality; firms tend to undertake a high level of R&D to enhance new product development through a downstream part of the supply chain collaboration. Collaboration is regarded vital for vertical and horizontal integration. Collaboration and customer focus are the most important aspects in implementing digitalisation; the advantage of electric vehicles is energy conservation by steering away from fuel and oil. Unfortunately, they also emit toxic battery waste, leading to environmental degradation. Moreover, the growth of the vehicle charging stations infrastructure has not kept pace with the growth of electric vehicles; digitalisation has transformed the labour market. It has abolished conventional labour. However, education and training are not consistently conducted at all levels in companies. The findings contain strategic implications for the industries to upskill the labour force to enhance digitalisation, supply-chain automation and AI skills facing Industry 4.0.