Lean Principles in Supply Chain Management for the Automotive Aftermarket

The automotive aftermarket represents a challenge for supply chain management when compared to traditional practices in the original equipment manufacturer (OEM) supply chain. This paper presents a case study for a Tier One automotive supplier’s challenges with inventory carrying costs, backorder risk, and supplier relationships for a rear seat entertainment system in the automotive aftermarket. It will also address the lean principles used to improve the business and increase material planning analyst productivity. A call for OEMs to examine their business practices is also included.