The worldwide automotive industry has undergone major changes in recent years. In Brazil, the establishment of new automakers, the consolidation and denationalization of autoparts, and the introduction of low displacement engines and bi-fuelled engines have important strategic implications for these companies and for their supply chains. Based on these implications, this paper attempts to shed light on the interrelationship between Operations Strategy (OSs) and Supply Chain Management (SCM), analyzing case studies conducted at two engine manufacturers in Brazil and at two of their suppliers. The findings of these case studies indicate strong interrelationships between competitive priorities and decisions involving structural and infrastructural issues, and between the structural and relational aspects of the productive chains to which these companies belong. The automakers studied here have similar OSs, but their priorities and actions take place within the contexts of different supply chain structures and, hence, are governed by distinct forms of relationships. Given the mutual influence of OS and SCM factors and the dependence on previous strategic choices, the decisions made in these two areas are even more complex and strategically relevant.
operations strategy; supply chain management; Brazilian automotive industry
