Perception of the sociology of absences in the agricultural machinery industry supply chain

Coti-Zelati, Paolo Edoardo; Teixeira, Maria Luisa Mendes; Machado, Michel Mott; Araújo, Davi Lucas Arruda de; Pereira, Rafael Morais

doi:10.1590/1806-9479.2021.247901

Paolo Edoardo Coti-Zelati

Escola de Administração, Faculdades de Campinas (FACAMP), Campinas (SP), Brasil. E-mails: paolo.coti-zelati@facamp.com.br; davi.araujo@facamp.com.br

http://orcid.org/0000-0002-4572-8308

Maria Luisa Mendes Teixeira

Programa de Pós-graduação em Administração de Empresas, Universidade Presbiteriana Mackenzie (MACKENZIE), São Paulo (SP), Brasil. E-mail: marialuisa.teixeira@mackenzie.br

http://orcid.org/0000-0002-0606-1723

Michel Mott Machado

Mestrado Profissional em Gestão e Desenvolvimento da Educação Profissional, Centro Estadual de Educação Tecnológica Paula Souza (CEETPS), Itaquaquecetuba (SP), Brasil. E-mail: michelmottmachado@gmail.com

http://orcid.org/0000-0002-3444-8271

Davi Lucas Arruda de Araújo

Escola de Administração, Faculdades de Campinas (FACAMP), Campinas (SP), Brasil. E-mails: paolo.coti-zelati@facamp.com.br; davi.araujo@facamp.com.br

Programa de Mestrado Profissional em Administração, Universidade Ibirapuera (UNIB), São Paulo (SP), Brasil. E-mails: davi.araujo@ibirapuera.edu.br; rafael.pereira@ibirapuera.edu.br

http://orcid.org/0000-0001-9502-1063

Rafael Morais Pereira

Programa de Mestrado Profissional em Administração, Universidade Ibirapuera (UNIB), São Paulo (SP), Brasil. E-mails: davi.araujo@ibirapuera.edu.br; rafael.pereira@ibirapuera.edu.br

Faculdade de Economia, Administração, Contabilidade, Universidade de São Paulo, (USP), São Paulo (SP), Brasil. E-mail: rmorais@usp.br

http://orcid.org/0000-0002-1656-0489

Respondent	Education	Position	Company experience	Company	City
R1	Production Engineering	Production Manager	5 years	X Supplier	Nova Odessa (SP)
R2	Agronomical Engineering	Distribution Supervisor	4 years	X Supplier	Piracicaba (SP)
R3	Mechanical Engineering	Commercial Director	8 years	Y Supplier	Curitiba (PR)
R4	Administration	Production Director	14 years	Y Supplier	São Paulo (SP)
R5	Administration	Sales Manager	4 years	Z Supplier	São Paulo (SP)
R6	Production Engineering	Commercial Manager	9 years	Z Supplier	Jaú (SP)

R1	R3	R4	R5
Well, nice names, but that's not how it goes (laughs). [...] In fact, we [are] who make our information completely available, even to improve the performance of our chain. JD makes available to its partners only the information it believes is necessary, I don't think they want to sell the fish, you know? She keeps the information, often privileged for her to outline the strategies she believes are most reasonable for the entire chain. Much of the information and knowledge of the market is in their hands and they work out their strategies on this information without sharing it with the rest of the chain. She shares the information that matters, understands? Valid information is what JD deems important for the chain (emphasis added).	[...] We share our information with NH, but the opposite is not always true. I can even say that we have very effective communication between our companies, so far without problems, I just think that it controls, due to its strength in the chain, our communications, even in our communication and information exchange with our suppliers NH has participation. When we are going to send some market-related information to our suppliers, it is important, even if not an obligation (laughs), to keep NH aware (our emphasis). It ends up dictating the pace of our production and our strategies are basically linked to the information she has about the market and makes it available to the chain.	[...] all information distributed or shared throughout the supply chain is part of NH. Rarely have I noticed the company interested in the information or knowledge we had available (our emphasis) [...] obviously NH has a strong structure and we can almost always rely on the information extracted and shared by it […] of strategies, we stand aside, just waiting for the decisions (our emphasis).	I think CIH, like many other large companies, controls the information and knowledge generated in the supply chain to use as it understands it, always aiming at its performance (emphasis added). We have our research and market development, but the market knowledge generated ends up being the one dictated by CIH. Our chain ends up using the information aimed at the strategies of CIH. Good or bad, we have nothing to complain about, the success of our biggest customer is our success (laughs).

R1	R2	R3	R5
There is no congruence in the goals (laughs), this is a little dream, understand? JD has its clear goals that it is to win the largest number of customers and remain the first in the industry […] Of course, we are very interested in being part of its partner team, so I can tell you that our main objective is to stay as a supplier of JD, understand? As much as we don't put this on our sites and we don't tell anyone. [...] We often go over some of our possible goals to meet the larger goal that is JD (our emphasis), she wants to continue to be the leading company in the industry and maintain its competitiveness at all costs. Our goal is to work to ensure that JD keeps its goal alive (emphasis added).	[...] I believe the goals are congruent, but fatally our goals end up tied to the goals of JD. It has a huge corporate structure and can clearly define the objectives of its chain [...] they are strong and have great productive potential, we do not have the size of a giant company to be able to face when the goals are set. We are waiting to know how to act and from there, offer, as a supplier, everything she needs to reach her goals (emphasis added). It's the way to reach ours too, in a way.	[...] In the agricultural machinery sector there is very strong competitiveness, there are few major companies in the sector, this in the world, so there is a big market to be explored and the fight for a bigger and better market share is constant. Our company aims to grow, develop, invest in new business, but in the background, our primary goal is to serve NH in the way it wants to be served and to help it reach and maintain market competitiveness. with great products (our emphasis).	[...] CIH has its objectives well defined as one of the main brands of agricultural machines on the planet. Fight for more market conquest against its main competitors NH, even from the Fiat and JD group. To partner with CIH, we have to understand and absorb its goals. [...] It is a daily struggle for more competitiveness and we, suppliers in your supply chain, we have to understand this and help it to achieve this competitive position, otherwise we are letter out of the deck (emphasis added).

R1	R2	R3	R5
I can tell you quite safely that there is no synchronization in our supply chain decisions (laughs). Any decision, at least in our company, is defined after a decision by JD (laughs) (emphasis added). We are small fish near them, so decisions can follow and must follow a coherence, after all, we are part of the same chain, but there is no synchronization. We move when JD makes its decision and her decision is the decision of the chain in which she is inserted. She dominates the market, the chain, and the decisions.	I can't tell if synchronization occurs in decisions, but it seems to be quite utopian. In our industry, the big company, the big automaker, makes the decision that's most convenient for her, without caring much, you know, with the smaller companies (our emphasis) that are part of its structure. We are informed of strategic decisions and act to meet whatever it takes to avoid losing the customer, right ?! (laughs).	[...] NH is not very concerned about this synchronization; she points and presents to the chain which or what will be its strategic decisions and we mere mortals (laughs) have to follow (our emphasis). That is, there is even a synchronization, but it is a synchronization that follows the decisions previously determined by NH, is difficult, and it is not our intention to determine the direction of decisions of the chain as a whole, leaving it to them that has more market strength […]	I don't see much of this synchronization in the decisions in our chain. What I perceive most is a hierarchy of decisions that end up affecting the whole chain (emphasis added). CIH makes strategic decisions aimed at the market and competitiveness against other companies that dominate the agricultural machinery market on the planet, it is up to the supplier to simply follow the decisions made by CIH if they want to be part of the club (laughs). It is not a complaint, we are interested in serving CIH with excellence, which as I said earlier, is our main customer, so we accept the market decisions made by it and try to do the impossible to meet it in its demand and challenges.

R1	R3	R5	R6
[...] we have this alignment with JD, we share success and failure within the chain, I only see an interesting detail in this respect (silence) we share the success and failures of JD and not the chain, ie The whole chain enjoys JD's gains or suffers her losses. Incentive alignment is tied to JD's success or failure, JD doesn't share my losses, my losses are mine alone, my gains are theirs, you know? (our emphasis). So there is an alignment and sharing of incentives, but always aiming at the greater interest of JD.	[...] It is difficult to think about sharing gains, investments, and losses. NH offers to the market state-of-the-art agricultural machines of excellent quality, because, of course, if its product does not go well in the market, this generates a loss, generates a cost and this cost is diluted in the chain, so we suffer the reflections of problems at the end of the chain. But I cannot say that a problem of my company, which generates a cost or a failure, I can share with NH (emphasis added).	We have to see this resource sharing on two sides. The first is the CIH side. She seeks to understand which resources available in the chain may be critical to her performance. It sounds like an individualistic view, but unfortunately, the rule of the game is this. The CIH seeks to extract from the chain everything that can contribute to its organizational development and share with the chain what matters, that is, there is always an ace under the sleeve (laughs) (emphasis added). It does not fully open to chain partners. The alignment of incentives exists. Obviously, if ICH wins, we win, not to the same extent, of course. If we think of losses, I believe the metric is the same, but inverse (laughs).	[...] It is important to say that we depend on CIH, if it goes bad, we will lose market and space. If we have problems like this, our recovery, that is, the gap is much larger (emphasis added). [...] the large company, can overcome a difficult phase of the market, our company is not of this size, so we cannot afford to make mistakes. We couldn't stand the jolt (laughs).

R1	R3	R5
We do not participate in JD research and development projects; no innovation projects are discussed with our company [...]. All knowledge that has any value for building innovative strategies comes from themselves, there is little or no open discussion about where our market should go and how we should deal with market trends. All research is developed and evaluated by JD, what remains is to believe that her decisions lead us to success (laughs) (emphasis added).	I do not recall attending any meetings or meetings where it was probed to create joint supply chain knowledge. [...] when I think of NH I don't see the possibility of joint knowledge creation that focuses on chain development, unless indirectly, but I see a gathering of all knowledge in the chain to generate an own knowledge that must be distributed throughout the chain to generate competitiveness, profit and market for itself first and then for the common development of the chain (emphasis added).	[...] in the chain in which we are inserted there is no such joint creation of knowledge. Basically, our boats sail in the direction set by CIH and other major clients. We hope that this direction will not drift them, otherwise, we would drift too (laughs) (emphasis added) Basically our strategy is to be a strategic supplier for CIH to become even more competitive in the agricultural machinery and implements scenario.

Brasil

Brasil

Perception of the sociology of absences in the agricultural machinery industry supply chain

A percepção da sociologia das ausências na cadeia de suprimentos da indústria de máquinas agrícolas

Abstract