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Building an innovation-based supplier portfolio: The use of patent analysis in strategic supplier selection in the automotive sector

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  • Trautrims, Alexander
  • MacCarthy, Bart L.
  • Okade, Chetan

Abstract

With an increasing proportion of external spend allocated to a smaller number of suppliers in their supply base, car manufacturers rely more and more on the performance of key supply chain partners outside their own organisational boundaries, particularly for product innovation. The identification and selection of innovative suppliers for strategically important supply categories require tools to determine which supply categories are supplier innovation-led and which suppliers are the most innovative. Here we discuss the use of patent analysis to identify product categories where supplier-led innovation is important, and which suppliers are leading innovation. We use data from the US patent office to analyse two important product innovation supply categories – car body technologies and car seats – from a leading premium automotive producer's supply portfolio. From the patent filings data we identify the innovation activities of car manufacturers and suppliers in each category over an eleven year period. It is evident from the analysis that innovation in car body technologies is dominated by the car manufacturers whereas innovation in car seats is strongly supplier-led. The results of the patent analysis are used to develop and discuss supply management options for the case company. Insights gained from patent analysis can be used to support procurement and sourcing processes at different levels: to identify innovation-active product categories at a supply portfolio level; to assess the innovativeness of potential suppliers at a product category level; and to identify which tier in a supply chain is active in product innovation at a supply chain level. Broader issues on the potential of patent analysis to inform and support procurement and sourcing processes are discussed.

Suggested Citation

  • Trautrims, Alexander & MacCarthy, Bart L. & Okade, Chetan, 2017. "Building an innovation-based supplier portfolio: The use of patent analysis in strategic supplier selection in the automotive sector," International Journal of Production Economics, Elsevier, vol. 194(C), pages 228-236.
    • Handle: RePEc:eee:proeco:v:194:y:2017:i:c:p:228-236
    DOI: 10.1016/j.ijpe.2017.05.008
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    2. Myung Kyo Kim & Ram Narasimhan & Tobias Schoenherr, 2020. "Leveraging Logistics Competence in New Product Sourcing: The Role of Strategic Intent and Impact on Performance," Logistics, MDPI, vol. 4(4), pages 1-17, October.
    3. Mu-Hsin Chang & James J. H. Liou & Huai-Wei Lo, 2019. "A Hybrid MCDM Model for Evaluating Strategic Alliance Partners in the Green Biopharmaceutical Industry," Sustainability, MDPI, vol. 11(15), pages 1-20, July.
    4. Delic, Mia & Eyers, Daniel R., 2020. "The effect of additive manufacturing adoption on supply chain flexibility and performance: An empirical analysis from the automotive industry," International Journal of Production Economics, Elsevier, vol. 228(C).
    5. Hana Urbancová & Pavla Vrabcová, 2023. "Sustainability-oriented Innovation: Crucial Sources to Achieve Competitiveness," Journal of Economics / Ekonomicky casopis, Institute of Economic Research, Slovak Academy of Sciences, vol. 71(1), pages 46-64, January.
    6. Bin Liu & Guohua Yang & Qi Zhang, 2020. "Pricing Decisions and Innovation Strategies Choice in Supply Chain with Competing Manufacturers and Common Supplier," Sustainability, MDPI, vol. 12(21), pages 1-16, October.
    7. Ming Zhang & Jianjun Zhu & Ponnambalam Kumaraswamy & Hehua Wang, 2019. "Evolutionary Game Analysis of the Effects of Problem Size and the Problem Proposing Mechanism on the Problem Processing Mechanism in a New Main Manufacturer–Supplier Collaborative System," Mathematics, MDPI, vol. 7(7), pages 1-19, July.
    8. Qiu-Rui He & Ping-Kuo Chen, 2023. "Developing a green supplier evaluation system for the Chinese semiconductor manufacturing industry based on supplier willingness," Operations Management Research, Springer, vol. 16(1), pages 227-244, March.

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