A Supply Chain Maturity Model for automotive SMEs: a case study

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A Supply Chain Maturity Model for automotive SMEs: aa case study A Supply Chain Maturity Model for automotive SMEs: case study A Supply Chain Maturity Model for automotive SMEs: a case study A Supply Chain Maturity Model for automotive SMEs: a case study Yahiaoui, Sanae *. Fedouaki, Faycal **

Yahiaoui, Sanae Sanae *. *. Fedouaki, Fedouaki, Faycal Faycal ** ** Yahiaoui, Yahiaoui, Sanae *. Fedouaki, Faycal Mouchtachi, Ahmed *** Yahiaoui, Sanae *. Fedouaki, Faycal ** ** Mouchtachi, Ahmed ***  Mouchtachi, Ahmed ***  Mouchtachi, Ahmed *** University School  University Hassan Hassan 22 of of Casablanca, Casablanca, Higher Higher National National School of of Arts Arts and and Crafts Crafts of of Casablanca, Casablanca, Morocco Morocco  University Hassan 2 of Casablanca, Higher National School of Arts and Crafts of Morocco Research Laboratory in Structural Engineering, Intelligent Systems and Electrical Energy University Hassan 2 of Casablanca, Higher National School of Arts and Crafts of Casablanca, Casablanca, Morocco Research Laboratory in Structural Engineering, Intelligent Systems and Electrical Energy Research Laboratory in Structural Engineering, Intelligent Systems and Electrical Energy * (Tel : 066-096-6267 ; e-mail : [email protected]) Research Laboratory Structural Engineering, Intelligent Systems and Electrical Energy * (Tel :in066-096-6267 ; e-mail : [email protected]) * 066-096-6267 [email protected]) ** 066-096-6267 ;; e-mail [email protected]) *** (Tel (Tel :: 063-445-5009 063-445-5009 e-mail :: [email protected]) [email protected]) ** (Tel : 063-445-5009 ; e-mail : [email protected]) *** (Tel: 066-130-0107; e-mail:[email protected]) ** : 063-445-5009 : [email protected]) ***(Tel (Tel: 066-130-0107;; e-mail e-mail:[email protected]) *** e-mail:[email protected]) *** (Tel: (Tel: 066-130-0107; 066-130-0107; e-mail:[email protected]) Abstract: Abstract: The The aim aim of of this this paper paper is is to to develop develop aa supply supply chain chain (SC) (SC) maturity maturity model model for for automotive automotive small small Abstract: The aim of this paper is to develop a supply chain (SC) maturity model for small and medium-sized enterprises (SMEs) based on the concept of critical success factors (CSFs). Starting Abstract: The aim enterprises of this paper is to develop a supply chain of (SC) maturity model for automotive automotive small and medium-sized (SMEs) based on the concept critical success factors (CSFs). Starting and medium-sized enterprises (SMEs) based on the concept of critical success factors (CSFs). Starting from an analysis of the existing literature of supply chain barriers in the automotive industry, a list of and medium-sized (SMEs) based the concept of critical success factorsindustry, (CSFs). aStarting from an analysis ofenterprises the existing literature of on supply chain barriers in the automotive list of relevant CSFs is adopted for our maturity model. Then,chain the proposed maturity model is validated by a case from an analysis of the existing literature of supply barriers in the automotive industry, a list of from an CSFs analysis of the existing literaturemodel. of supply barriers maturity in the automotive industry,by a list of relevant is adopted for our maturity Then,chain the proposed model is validated a case relevant CSFs is adopted for our maturity model. Then, the proposed maturity model is validated by a case study in small automotive company, to demonstrate the capacity of the proposed model to assess the relevant adopted forcompany, our maturity model. Then,the the capacity proposedof maturity model ismodel validated by a case study in CSFs smallisautomotive to demonstrate the proposed to assess the study small company, to the of to maturity SC,automotive and to develop an improvement roadmap for SC’ automotive SMEs.model This improvement study in in of small company, to demonstrate demonstrate the capacity capacity of the the proposed proposed to assess assess the the maturity of SC,automotive and to develop an improvement roadmap for SC’ automotive SMEs.model This improvement maturity of SC, and to develop an improvement roadmap for SC’ automotive SMEs. This improvement roadmap will then allow companies to implement improvement actions in order to reach a higher maturity maturity of and to develop an improvement for SC’ automotive improvement roadmap willSC, then allow companies to implement roadmap improvement actions in order SMEs. to reachThis a higher maturity © 2019 IFACto implement improvement actions in order to reach a higher maturity roadmap will then level of SC. roadmap willCopyright then allow allow©companies companies level of SC. Copyright 2019 IFACto implement improvement actions in order to reach a higher maturity level of SC. Copyright © 2019 IFAC level of SC. Copyright © IFAC Model, © 2019, IFAC (International Federation of Automatic Control) HostingSmall by Elsevier Ltd. All rights reserved. Keywords: Supply Chain,2019 Maturity Automotive industry, and Medium-sized Enterprise, Keywords: Supply Chain, Maturity Model, Automotive industry, Small and Medium-sized Enterprise, Keywords: Supply Chain, Maturity Model, Automotive industry, Small and Medium-sized Enterprise, Barriers, Critical Success Factor, Morocco. Keywords: Supply Chain,Factor, Maturity Model, Automotive industry, Small and Medium-sized Enterprise, Barriers, Critical Success Morocco. Barriers, Critical Success Factor, Morocco. Barriers, Critical Success Factor, Morocco.    

1. 1. INTRODUCTION INTRODUCTION In recent years, the industrial sector has experienced 1. 1. INTRODUCTION INTRODUCTION In recent years, the has experienced industrial sector significant growth in the market, which makes companies In years, the sector has In recent recent growth years, in the theindustrial industrial sector makes has experienced experienced significant market, which companies more significant growth in the market, which makes companies vigilant to compete and differentiate themselves from significant growth in the and market, which makes companies more vigilant to compete differentiate themselves from more vigilant to compete and differentiate themselves from each other. By looking for tools to improve their visibility in more vigilant compete from each other. Bytolooking for and toolsdifferentiate to improve themselves their visibility in each other. By looking for tools to improve their visibility in the global SC, anticipate flows, optimize their processes to eachglobal other. SC, By looking forflows, tools tooptimize improvetheir theirprocesses visibility to in the anticipate the global SC, anticipate flows, optimize their processes to meet logistics requirements in terms of optimizing costs and the global SC,requirements anticipate flows, optimize their processes to meet logistics in terms of optimizing costs and meet requirements in of costs and delays, improve service and meet logistics logistics requirements in terms terms of optimizing optimizingwith costsdirect and delays, improve service quality quality and productivity productivity with direct delays, improve service quality and productivity with direct impact asset utilization and customer satisfaction to make it delays, asset improve service and quality and productivity direct impact utilization customer satisfaction with to make it more competitive. The SC concept is satisfaction now truly part of the impact asset utilization and customer to make it impactcompetitive. asset utilization and concept customeris satisfaction to make it more The SC now truly part of the globalcompetitive. industrial landscape. The idea isofnow managing companies more The SC concept truly part of the more competitive. The SC The concept isofnow truly part of the global industrial landscape. idea managing companies global industrial The idea managing companies in aa cross-sectoral way in aa compartmentalized global industrial landscape. landscape. Thelonger idea of of companies in cross-sectoral way and and no no longer in managing compartmentalized in a cross-sectoral way and no longer in a compartmentalized manner and based on local performance targets has in a cross-sectoral and no longer in atargets compartmentalized manner and based way on local performance has made made its its manner and based on local performance targets has way (Laura, M. 2004). manner and M. based on local performance targets has made made its its way (Laura, 2004). way (Laura, M. In SMEs, logistical waymost (Laura, M. 2004). 2004). In most SMEs, logistical operations operations and and tasks tasks are are rather rather In logistical operations and are outsourced. As this category transport and In most most SMEs, SMEs, logistical and tasks tasks are rather rather outsourced. As aa result, result, thisoperations category considers considers transport and outsourced. As a result, this category considers transport and logistics almost exclusively as external costs that they cannot outsourced. As aexclusively result, this as category and logistics almost externalconsiders costs thattransport they cannot or do notalmost want to control, often having costs only an approximate, logistics exclusively as external that they cannot logistics exclusively as external thatapproximate, they cannot or do notalmost want to control, often having costs only an probably erroneous and ideaoften of the amounts and proportions of or want having only an approximate, or do do not noterroneous want to to control, control, often having only anproportions approximate, probably and idea of the amounts and of probably erroneous and idea of the amounts and proportions of these costs in their operating accounts. Indeed, several SMEs probably erroneous and idea ofaccounts. the amounts and proportions of these costs in their operating Indeed, several SMEs these costs in their operating accounts. Indeed, several SMEs that have adopted the Supply Chain Management (SCM) thesehave costs adopted in their operating accounts. several(SCM) SMEs that the Supply Chain Indeed, Management that adopted the Chain Management (SCM) system are very with results obtained. Which that have have the Supply Supply Chain Management system areadopted very satisfied satisfied with the the results obtained. (SCM) Which system are very satisfied with the results obtained. Which disprove the idea that SCM is only for large companies. In system are with the results obtained. Which disprove thevery idea satisfied that SCM is only for large companies. In disprove the idea that SCM is only for large companies. In addition, SCM can; with limited costs; find an adequate place disprove SCM the idea is only large companies. In addition, can;that withSCM limited costs;forfind an adequate place addition, SCM can; with limited costs; find an adequate place in any organization, whatever its size or specificity. addition, SCM can; with limited an adequate place in any organization, whatever its costs; size orfind specificity. In fact,organization, SMEs have been described as catalysts for the future in whatever its specificity. in any any organization, whatever its size sizeasor orcatalysts specificity. In fact, SMEs for theSMEs’ future economy and have there been is a described special need to accelerate In fact, SMEs have been described as catalysts for future In fact, SMEs have been described as catalysts for the theSMEs’ future economy and there is a special need to accelerate economy and there is a special need to accelerate SMEs’ growth and to improve their competitiveness. We support the economy there is their a special need to accelerate SMEs’ growth andand to improve competitiveness. We support the growth and to improve their competitiveness. We support idea that to SMEs may differ from larger companies by growth improve competitiveness. We supportbythe theaa idea thatandtotoSMEs maytheir differ from larger companies idea that to SMEs may differ from larger companies by number of key characteristics, e.g. resource and knowledge idea thatoftokey SMEs may differ e.g. fromresource larger companies by aa number characteristics, and knowledge number of key characteristics, e.g. resource and knowledge limitations, lack of money, reliance on a small number number of key e.g. resource and knowledge limitations, lackcharacteristics, of money, reliance on a small number of of limitations, lack of money, reliance on a small number of customers and need for multi-skilled employees. Some of limitations,and lack of for money, reliance employees. on a smallSome number of customers need multi-skilled of the the customers and need for multi-skilled employees. Some of the above-mentioned characteristics are putting a greater strain on customers and need for multi-skilled employees. Some of the above-mentioned characteristics are putting a greater strain on above-mentioned characteristics are aa greater on the SMEs that implementation of above-mentioned are putting putting greater strain strain on the SMEs inducing inducingcharacteristics that the the successful successful implementation of SCM SCM the SMEs inducing that the successful implementation of SCM the SMEs inducing that the successful implementation of SCM

system may be more challenging in this context. Indeed, the system mayofbe challenging in this the emergence themore SC has created needs for context. businessIndeed, integration system more challenging in context. Indeed, the system may mayofbe be challenging in this this the emergence themore SC has created needs for context. businessIndeed, integration and coordination of has material flows, information flows and emergence of the SC created needs for business integration emergence of the SC createdflows, needs information for business integration and coordination of has material flows and financial flows to levels never flows, before achieved. In fact, SCM and of information flows and and coordination coordination of material material flows, information flowsSCM and financial flowsapproaches, to levels never beforeand achieved. fact, encompasses methods tools toIn meet these financial flows to levels never before achieved. In fact, SCM financial flowsapproaches, to levels never beforeand achieved. Inmeet fact, SCM encompasses methods tools to these needs. It is in approaches, this context that our paper aims to develop the encompasses methods and meet encompasses methods and tools tools meet these these needs. Itofis the in approaches, this context that our paper aims in toSMEs develop the concept maturity of the "Supply Chain" of the needs. in context that our aims to develop needs. It Itofis is the in this this context that"Supply our paper paper aims in toSMEs develop concept maturity of the Chain" of the industrial sector and specifically concept the of Chain" in of for automotive industries. concept of ofsector the maturity maturity of the the "Supply "Supply in SMEs SMEs of the the for the theChain" automotive industries. industrial The objective ofand thisspecifically article is to develop a maturity model industrial sector and specifically for the automotive industries. industrial sectorofand specifically fordevelop the automotive industries. The objective this article is to a maturity model (MM) enablingofthe measurement of logistics performance of The this article aa maturity model The objective objective this article is is to toofdevelop develop maturity model (MM) enablingofthe measurement logistics performance of Moroccan automotive SMEs. Theof proposed SC MM must be (MM) enabling the measurement logistics performance of (MM) enabling the measurement logisticsSC performance of Moroccan automotive SMEs. Theof proposed MM must be adequate toautomotive the structureSMEs. of automotive SMEsSC andMM based on the Moroccan The proposed must be Moroccantoautomotive The proposed must be adequate the structureSMEs. of automotive SMEsSC andMM based on the concept of Critical Success Factors (CSFs). Moreover, to adequate to structure of and based adequate of to the the structure of automotive automotive SMEs SMEs andMoreover, based on on the the concept Critical Success (CSFs). to suggest an action plan with a Factors view to improve collaboration, concept of Critical Success Factors (CSFs). Moreover, concept an of action Critical Success Factors (CSFs). collaboration, Moreover, to to suggest plan with a view to improve integration and overall performance of the SC. collaboration, Over the past suggest plan aa view suggest an an action action plan with with view to toofimprove improve collaboration, past integration and overall performance the SC. Over the few years, numerous scientific publications have emerged to integration and performance of Over integration and overall overallscientific performance of the the SC. SC. Over the the past past few years,the numerous publications have underline importance of CSFs for managing SCemerged in order to few years, numerous scientific publications have emerged to few years,the numerous scientific publications have to underline importance of CSFs for managing SCemerged in order of have successful processes. In addition, a large amount underline the importance of CSFs for managing SC in order to underline the importance of CSFs for managing SC amount in order of to have successful processes. In addition, a large research in literature deals with the subject of the amount barriers of to have successful processes. In addition, a large have successful processes. In addition, a of large research in literature deals with the subject the amount barriers of to the SCM.in literature deals with the subject of the barriers to research research the SCM.in literature deals with the subject of the barriers to In the first section of this paper, we will examine the general the SCM. thethe SCM. In first section ofMoroccan this paper,automotive we will examine the and general context of the SC in industries the In the section of this we the general In the first first section ofMoroccan this paper, paper,automotive we will will examine examine the and general context of the SC in industries the problematics faced by those companies. In the second section, context SC automotive industries and context of of the thefaced SC in inbyMoroccan Moroccan automotive industries and the the problematics those companies. In the second section, we will choose problematics faced by In the second section, the CSFs our MM on problematics faced by those those companies. companies. section, the pertinent pertinent CSFs to to use useInin inthe oursecond MM based based on we will choose aweliterature review of SCM barriers. will choose the pertinent CSFs to use in our MM based on As for the third section, weliterature will choose the pertinent CSFs to As use for in our on SCM barriers. the MM thirdbased section, awill review of be devoted to the design of SC MM for automotive SMEs. aa literature review of SCM barriers. As for the third section, literature review of design SCM barriers. Asfor forautomotive the third section, will be devoted to the of SC MM SMEs. Then, in forth section we willoftry to validate it through SMEs. a case will to SC for will be beindevoted devoted to the the design design SCtoMM MM for automotive automotive Then, forth section we willoftry validate it through SMEs. a case study in forth Moroccan small-sized enterprise. While thea case last Then, in section we will try to validate it through Then, in sectionsmall-sized we will try to validate itWhile throughthea case study in forth Moroccan enterprise. last section, will discusssmall-sized the conclusions and potential paper study in Moroccan enterprise. While the last study in will Moroccan small-sized enterprise. While thepaper last section, discuss the conclusions and potential perspectives. section, will discuss the conclusions and potential paper section, will discuss the conclusions and potential paper perspectives. perspectives. perspectives. 2. INDUSTRIAL CONTEXT AND ISSUES 2. INDUSTRIAL CONTEXT AND ISSUES 2.1 General presentationCONTEXT of the automotive industries in 2. AND 2. INDUSTRIAL INDUSTRIAL AND ISSUES ISSUES 2.1 General presentationCONTEXT of the automotive industries in Morocco: 2.1 General presentation of the automotive 2.1 General presentation of the automotive industries industries in in Morocco: Morocco: Morocco:

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The automotive industry today represents a sector with high Delphi, Yazaki, Sews, Saint-Gobain and more recently PSA added-value. Many players interact in this industry: designers, (Peugeot- Citroën). The automotive sector has seen an assemblers, parts suppliers, equipment manufacturers, outstanding increase as it went on for more local integration. carriers, salespeople...The Moroccan automotive industry has With the development of its network of national operators and grown to sustained levels of growth over the past decade. Its the diversification of its businesses, from 2014 to 2016, the performance is particularly impressive in terms of export and export turnover of the automotive sector has increase by 50%, job creation, indicators for which the sector generates double- from USD 4.3 Billion to USD 6 Billion. With a prospect of digit annual growth. The positioning of Morocco as a platform exporting USD 11 Billion by 2020. The table 1 below for production and export of automotive equipment and summarizes the development of the automotive sector in vehicles is strengthened by the presence of renowned Morocco from 1959 to 2017. international groups such as Renault, Snop, Gmd, Bamesa, Table 1. Development trends in the automotive sector in Morocco from 1959 to 2017 Year 1959 1995 1996

2003

Phas es Start of the automobile assembly initiated by the promulgation of the Dahir (royal decree) Development of automotive component industry

the manufacturing

liberation of the sector marked by the privatization of SOMACA and the conclusion, in July 2003, of an agreement with Renault bearing the industrial project of assembly of the family car "Dacia Logan"

Companies

Activity

Creation of SOMACA Convention FIAT Auto S.P.A Two agreements with PSA and Renault

Assembly of parts in mechanical assemblies and bodies of passenger cars and commercial vehicles for the benefit of Fiat, Citroën and Renault brands Conclusion with Fiat Auto S.P.A of a convention on the economic car project (50% integration rate) and continues with the signature. Efficient light duty commercial vehicle assembly at 100% integration / compensation (25% Integration, 75% Compensation).

SOMACA and RENAULT

Renault has extended SOMACA in order to increase its production capacity to SC Western European countries, notably France and Spain, as well as the Mediterranean Arab.

2012

Start of the activity of the Renault-Tangier industrial complex.

Renault-Tangier

Emergence of a world-class Moroccan automotive base. New OEMs and subcontractors have chosen to set up operations in Morocco; according to the magazine “Industrie du Maroc”, the country now has 150 factories of equipment manufacturers.

2014

Development of automotive ecosystems launched in October 2014.

Industrial Acceleration Plan 2014-2020 (PAI)

Launch of the Industrial Acceleration Plan 2014-2020 (PAI)

2019

The PSA group confirmed the opening of the site for early 2019 with the target in 2024 of 200,000 vehicles and engines per year.

The Kenitra PSA plant will produce engines and vehicles covering the needs of the region and Moroccan customers by 2019, with a production capacity of 200,000 vehicles and 200,000 engines per year.

PSA Group

2.2 Issue In the automotive sector, the quest to squeeze delivery times to their maximum represents a permanent goal for all players in the industry. These are to optimize the SC to have a higher maturity level to get a product in the right quantities, good quality, and good conditions, delivered to the right place at the right time for the right price. In recent years, many authors have highlight the importance of measuring the maturity of SC to get competitive advantages and respond to increasing market pressure, especially for SMEs representing 99% of the total number of operating companies (Garengo and al, 2007). For this reason, SMEs are socially and economically important and need tools and solutions to safeguard their competitiveness in difficult environments. Many research in the literature deals with the design of frameworks and procedures that industries can follow in order to implement a MM for SC. Despite this extensive research on the maturity of the SC, only a few specifically refer to SMEs. There appears to be a lack of empirical investigations into the design of SC MMs adapted to the automotive industry in the context of SMEs. It is in this sense that we focus the purpose of our article to decrease the maturity levels of the SC designed for large companies. Related to this, we need a MM that could assist automotive SMEs to have a performant SC, so that automotive SMEs can evaluate their level of readiness and identify aspects, which are still considered weak. Thus, it is expected that this MM could

further assessing the maturity of SC and improve the success rate of SC implementation. 3. SC IN THE AUTOMOTIVE INDUSTRIES Several articles refer to the history of logistics. This historical approach underscores the importance of logistics today in business and management sciences (Belin-Munier, C. 2014). Initially, the applications of the term logistics are limited to the military context and it was not until the 1960s that it would appear in business vocabulary (R. Ballou, 2007; K. Rahoum, 2015-2016). In the 50’s, organizations began to focus on transportation costs and how to reduce them (D.J. Bowersox, 2007). In the 60’s, the term logistics was incorporated into the vocabulary of companies; its application being then often limited to the transportation of goods. Over the years, the ramifications of logistics have extended to deal with the movement of matter in the company. In the early 80’s, the SC concept emerged and it became clear that the company's performance was dependent on upstream (supplier) or downstream (distribution network) actions. Again, over the years, SCM has gone beyond the mere movement of merchandise to take into consideration activities that may have an impact on the availability of a product that meets the needs of a customer. The SC in the automotive sector is developed for the maximum reduction in delivery times, which is an objective for all automotive industries. This desire is supported particularly by

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automotive companies that are trying to optimize even more the just-in-time flow with the aim of improving their SC by the use of tools such as models of maturity. 4. AUTOMOTIVE MATURITY MODELS A model is “a representation of an abstraction of a part of the real world, expressed in a language of representation” (O.Matrane and al 2014). A MM in the field of project management is a tool for defining the level of maturity of an isolated entity or a company. With a MM, it is possible to make comparisons between entities of the same nature" (H. Kerzner, 2004). The ability of the company and its network to be reactive, flexible, effective and efficient in order to gain a competitive advantage requires the adoption of tools that enable companies to better identify the problems and practices relating to these areas. These tools, called repositories or model of maturity, have therefore evolved in relation to several parameters, but also in relation to the constitution of knowledge in the automotive field. Among many models of maturity that are used in the automotive industry, we will quote two in this article starting with the Global EVALOG (Global MMOG / LE) model; which was established in 1999 with Odette International Limited and Automotive Industry Action Group. It evaluates the processes and the performances of the partner site, and adopts an approach of continuous improvement. Although it has been developed for the automotive industry"(Estampe, D. 2013). Through its use, it is thus possible to highlight the weaknesses of the organization, better integrate its processes and thereby improve the internal interfaces (between supply and production, between production and distribution) to increase its rate on duty. A whole set of measures that can improve the profitability of the company. Next is the Lean Manufacturing model, which generically designates a production system for which Toyota is at the origin of its philosophy and which is used today in all the industrial sectors of the world. The basic principle of this philosophy is defined as a systematic approach aimed at identifying and eliminating all waste (non-value added activities) through continuous improvement in order to achieve industrial excellence. 5. LITERATURE REVIEW Research in various industrial sectors demonstrated the benefits of using MMs and the correlation between improving project management maturity and project performance. (Jahn, T. and al, 2009; Ramirez, N. G. and al, 2009; Mcbride, T., and al, 2004; C. W. Ibbs and al, 2004; T. Cooke-Davies, 2004; Cooke-Davies, T. J., & Arzymanow, A. 2003; Skulmoski, G. 2001). Among them, we can quote"(Ramirez, N. G. and al, 2009): R. Deguil, who presents in his thesis a mapping between a requirements repository and a model of maturity. It is based on the CMMI standard and the regulatory framework of the pharmaceutical industry (Deguil, R. 2008). J. Härkönen, which proposes the improvement of product development processes through verification and validation (V & V) of processes (Härkönen, J. 2009). It applies the Toyota New Product Development System (TNPD) in the field of telecommunications.

T. Jahn and H. Binz deployed work in the automotive industry (BMW) (JAHN, T. and al, 2009). They propose to evaluate the maturity of vehicle projects in the early phases of the project (pre-design). Iskander Zouaghi, who defines a methodology for developing a logistic MM (Iskander Zouaghi, 2013). Chafik, K., and al., (2016) developed a theoretical model to explain the process by which logistics information systems contribute to the performance and maturity of logistics processes. However, for the SC in industries, there was a wide variety of measurement systems, starting with the best known ones, such as Balanced Scorecard (Kaplan RS, Norton DP, 1996) or EFQM Excellence Model (2009-2010), mainly focused on the measurement of autonomous entities, subsidiaries, business units, etc.) This is the aim of our article, which aims to combine the following three concepts: the level of maturity, the automotive sector and SMEs. To obtain a model of maturity of the logistics chain adapted to the automotive industry in the context of SMEs. SC MATURITY LEVELS FOR AUTOMOTIVE SMEs For this study, based on the analysis of the various definitions of the logistic chain present in the literature on the one hand. Based on the general structure of the GLOBAL EVALOG framework and the lean manufacturing methodology, we have developed a tool for measuring the logistic maturity of the SME automotive industries, actions in line with client expectations and objectives. For most researches, the design of MMs is based on five to seven dimensions, and what is generally valid for large companies. While SMEs present some distinctive characteristics that differentiate them from large enterprises. This implies that also their needs in terms of SC processes and tools are different from those of larger companies. Therefore, the SC processes general requirements identified have to be tailored to SME needs by means of an analysis of SME characteristics. In addition, SMEs suffer from lack of resources; the SC measures should be very simple, synthetic and easily collectable, otherwise the effort needed for measuring would be higher than the benefit gained. Moreover, it would be better to use only a few vital metrics, better if reported in a graphically and visually effective way, in order to enable the manager to focus only on key performance factors and quickly take informed decisions. In this sense, we propose appropriate MMs for SMEs because they can be easily understood and used in optimal time and structured so as not to require the use of external consultants. This type of tool can be used to meet the needs of SMEs in that it allows highlighting best practices in a simple way and using limited resources. In our case, dedicated to automotive SMEs, we decided to keep four dimensions with three levels of maturity for the SC, namely (1) purchase and supply, (2) production, (3) storage and distribution and (4) sales. Then, we measure their maturity at three main levels: (1) effective SC, (2) efficiency SC, and (3) excellence SC, as shown in Table 2 below.

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Table 2. SC Maturity Levels for automotive SMEs DIMENSIONS SC MATURITY LEVELS Purchase & Supply Level 1: Level 2: Level 3: Production Effective Efficiency Excellence Storage & SC SC SC distribution Sales

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project. (Avots, I. 1969; Pinto, J. K. and al, 1989; Slevin, D. P. and al, 1986), and drew conclusions that were widely reflected in the written literature for project managers (Shahin, A. and al. 2006). This research component, which began decades ago, focused on identifying CSFs as "characteristics, conditions, or variables that may have a significant impact on the success of the project". Barriers to Effective SCM Conceptually, Strategic SCs seem to succeed or fail on the degree of resource sharing among partners (eg information, knowledge, skills) and the ability of partners to use these resources effectively in their own resources.

7. CRITICAL SUCCESS FACTORS OF SCM 7.1 Objective: The purpose of this section is to identify the different obstacles of the SCM MM in the automotive industry, to more precisely identify the contextual relationship between the identified In this section, we highlight some of the key barriers that barriers and the CSF to implement our MM of SCM, to classify block the performance and maturity of SCM, in order to these barriers according to their driving power and define the pertinent CSF for our MM in automotive industry dependence. The second part consists of a review of the defined by researchers in literature review. literature on the barriers of SCM in the automotive industry. The obstacles to the implementation of MM relevant for the 7.4 Definition of the barriers of SCM : automotive industry have been identified and described in the According to global statistics, the automotive industry is the third part. The detailed step-by-step procedure to deduce the largest manufacturing sector in the world (Lettice, F. and CSF from our MM based on these barriers already defined in al.2010). World population growth has also increased the fourth part. For the last part will be a projection of these demand for vehicles (Olugu, E.U. and al. 2010). According CSF on our previously predefined model, with a case study to the literature, barriers are classified under one of two validation for an automotive sector company. headings: "business-to-business rivalry" and "managerial 7.2 Definition: complexity" (Park, S.H. and al. 2001). Corporate rivalry is a CSFs refers to an element that is necessary for an organization misalignment of the motivations and behaviors of allied or project to achieve its mission. It is a critical factor or activity partners within the strategic SC (Park, S.H. and al. 2001). required for ensuring the success of a company or an Under the umbrella of management complexity, barriers organization (Rockart, John F., 1979). The concept of "success include information systems and technological factors" was developed by Daniel in 1961 of McKinsey & incompatibility, inadequate measurement systems and Company and was refined by Rockart 1979. According to conflicting organizational structures and culture (Sheridan Boynton and al. 1984, "Critical success factors are those few and al. 1999). Since many companies are comfortable using things that must go well to ensure success for a manager or an their systems solely for their own purposes, it is not organization, and, therefore, they represent those managerial surprising to see inconsistent information and technology or enterprise area, that must be given special and continual systems as a barrier. Cooper et al. commented: Successful attention to bring about high performance. CSFs include issues SCM requires shifting from managing individual functions vital to an organization's current operating activities and to its to integrating activities into key SC processes (Cooper, M.C. future success." and al., 1997). In Table 3 below, we identified the barriers to SCM in the automotive industry adopted for our MM. 7.3 Methodology for determining the CSF of the SCM MM : Since the late 1960s, project management researchers have been trying to find out what factors lead to the success of the Table 3. Supply Chain Management’ Barriers SCM Barriers Lack of IT Implementation Inadequate information Poor SCM planning Lack of vision of SCM Lack of reliability of supply Lack strategy for suppliers choice Lack SC measurement Resistance to Technology Advancement Adoption Lack of Quality of Human Resources Market Competition and Uncertainty Lack of Government Support systems Lack of Top Management

Researcher’s Luthra, S. et al.(2011); Rogers, D.S. et al.(1998); WU, G. C. et al.(2010); Ravi,V. et al.(2005); Alkhidir, T., et al.(2009) Heydari, J. et al., (2017); Mardani, A., et al., (2016); Mathivathanan, D., et al., (2017); Rajeev, A., et al., (2017); Zavadskas, E. K., et al., (2016); Chatterjee, S. and Kumar, K. (2009) Luthra, S. and al (2011); Barratt, M. (2004a); Barratt, M. (2004b); Bender, P.S. (2000); Cox, A. (1999); Lonsdale, C. (1999); Lee, H.L. (2004) Luthra, S. and al (2011); Akkermans, H. and al., (2004); Cox, A. (1999); Lonsdale, C. (1999); Mentzer, J.T., et al. (2000) Nowakowski, T. (2009) Luthra, S. and al (2011); Barratt, M. (2004a); Moberg, C.B., et al. (2003) Barratt, M. (2004a); Mentzer, J.T., et al. (2000); Monczka, R.M. and Morgan, J.P. (1997) Rina (2012); Unfccc (2013); Hosseini, A. (2007); Cooper, M.C. and al., (1997); Hsu, C. W., and al. (2008); Digalwar, A.K., et al. (2004); Alkhidir, T., et al. (2009) Yu Lin, C. (2007); Hsu, C. W., and al. (2008); Chien, M.K., and al., (2007) Hosseini, A. (2007); Yu Lin, C. (2007); Rakesh K. et al. (2010) Hosseini, A. (2007); Yu Lin, C. (2007); Hsu, C. W., and al. (2008); Mudgal, R.K., et al. (2009); Rakesh K. et al. (2010); Scupola, A. (2003); Srivastva, S. (2007) Rakesh K. et al. (2010); Digalwar, A.K., et al. (2004); Sarkis, J. (2009); Mudgal, R.K., et al. (2009); Ravi, V., et al. 2097

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Commitment Supplier Reluctance to change towards Global SCM Lack of Integrated SI Poor business SC planning

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(2005); Zhu and al (2007) Hsu, C. W., and al. (2008); Kannan, G., et al. (2009); Lettice, F. and al. (2010); Ravi, V., et al. (2005); Srivastva, S. (2007); Sarkar et al. (2006) Luthra, S. and al (2011); Wu, G. C. et al. (2010); Ravi, V., et al. (2005); Alkhidir, T., et al. (2009) Luthra, S. and al (2011); Barratt, M. (2004a); Bender, P.S. (2000)

From a state of the art provided in literature on industrial SC barriers, a list of major obstacles generated in the form of the table above is defined. We have identified various obstacles to the implementation of the SCM MM. Among these barriers, we quote some main ones: (1) the lack of implementation computer. (2) Resistance to the adoption of the advancement of technology. (3) Lack of encouragement from the organization. (4) Poor quality of human resources. (5) Market Competition and Uncertainty. (6) Lack of Government Support System. (7) Lack of commitment from senior management. (8) Financial implications. (9) The reluctance of suppliers to turn to SCM and (10) lack of knowledge of customers.

integrating SCs are irresistible. However, the barriers to success can be daunting. Understanding these barriers can lead to the design of key and successful drivers for SCM benefits (Stanley E. and al. 2008). After having defined all the barriers of the SCM MM cited by the researchers, we will then deduce the CSFs of our model based on these barriers in Table 4. Table 4. CSFs of the MM of the SCM

8. DETERMINING THE CSF OF SCM CSFs differ between manufacturers. They can be strategic, managerial or operational and are defined mainly according to three aspects: organizational, industrial and environmental. Sometimes it is even necessary to consider the CSFs of each employee (Olszak, C. M., and al. 2012; Fedouaki, F., and al., 2013; Turban, E., and al. 2001). The potential benefits of

Adopt strategy for Integrated information system suppliers choice SC measurement Joint business SC planning Technology Advancement Adoption

IT Implementation Free Flow information SCM planning Vision of SCM Reliability of supply

Quality of Human Resources Market competition Study Government support systems of acquisition the warehouses Top management commitment No Reluctance of suppliers to meet the requirements of a successful SCM

After we deduce the CSF from the SC MM as projected in the (Table 5).

Table 5. The proposed Supply Chain Maturity Model for automotive Small and Medium-sized Enterprises. Dimension

Purchase & Supply

Production

Storage & distribution

Sales

CSF of SC’ Automotive SMEs

Level 1: Effective SC

Supply chain Maturity Level Level 2: Efficiency SC

Level 3: Excellence SC

Replenishment calculation based on a No Calculation of requirements; Requirement calculation using an MRP simple file, and limited on orders IT Implementation supplies are not planned. software. placed. The company does not have a The selection of suppliers is based on The selection of suppliers is based on a purchasing strategy and selects its a formalized process of defining formalized process of defining Adopt strategy for suppliers essentially according to specifications that involve all the specifications that involve all the suppliers choice price criteria. company's stakeholders. company's stakeholders. No communication between Incomplete sharing of information Sharing information leading to optimized the Free Flow information company, its suppliers and between the company, its suppliers sharing of decision- making plus formal its customers. and its customers. communication plan. is The production planning Production plans are based on order Production planning by a master centralized, and carried out using SCM planning backlog and productivity targets. production schedule (MPS). software of the CAPM type. The company has a production The company has a real-time view of The company does not use software scheduling and tracking system that customer demand, stock data circulating in for scheduling production and SCM Vision receives production orders from the the SC and internal and external industrial launching OF PDP. constraints. The concepts of finite capacity, Priority management is dominated by Business Capability Calculation and Top management Priority management or queuing are the search for productivity and the Customer Priority Management. commitment not known. lowest production costs. No production monitoring indicators Few monitoring indicators SC measurement Implementation of a process control panel. Make a transportation and delivery Optimize distribution and response to the Lack of management and distribution Quality of Human program to manage the distribution customer using an effective team process. Resources process. constitution. No tracking of quality and The quality and reliability of Integrate indicators of quality control and Reliability of Supply reliability of deliveries unpredictable deliveries. reliability of deliveries. Warehouse location and cost optimization Government support The company does not have a strategy Definition of a strategic vision for using several criteria: warehouse capacity systems of acquisition for warehouse management and warehouse locations. minimizing costs. calculation … the warehouses No business-to-business visibility. Internal communication with paper Integration of business-to-business Integrated Joint business SC No sales forecasts. Medium-term sales forecasts. Strategic Sales Plan. planning Market competition Broaden its market by penetrating No market research. Set strategic objectives. new segments. Study Technology Use of technology for sale: E- commerce Use of traditional tools in sales. Expand points of sale. Advancement websites web pages. Adoption 2098

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model based on the socio-technical approach]”.International Journal of Innovation and Applied Studies, 16(1), 111. Fedouaki, F., and al. (2013). A maturity model for Business Intelligence System project in SMEs: an empirical investigation. International Journal of Computer Science Issues (IJCSI), 10(6), 61. Heydari, J., and al. (2017). “Reverse and closed loop supply chain coordination by considering government role”. Transportation Research PartD: Transport and Environment, 52, 379-398. Iskander Zouaghi, (2013),”Maturité supply chain des entreprises : conception d’un modèle d’évaluation et mise en oeuvre”. Thesis of the University of GRENOBLE. Khadija Rahoum, (2015-2016),”Analysis and evaluation of the Moroccan automotive logistic chain”, Morocco. Lettice, F., and al. (2010). “Buyer-supplier partnerships during product design and development in the global automotive sector: who invests in what and when?” International journal of Production Economics, 127(2), 309-319. Luthra, S., and al. (2011). Barriers to implement green SCM in automobile industry using interpretive structural modeling technique-An Indian perspective. Journal of Industrial Engineering and Management, 4(2), 231-257. Mardani, A., and al. (2016). “VIKOR technique: a systematic review of the state of the art literature on methodologies and applications”. Sustainability, Vol. 8, No. 1, p.37. Mathivathanan, D., and al. (2017) “Exploring the impact of dynamic capabilities on sustainable SC firm’s performance using grey-analytical hierarchy process”. Journal of Cleaner Production, Vol. 147, pp.637–653. O.Matrane, and al. (2014),”comparative study of different models of maturity in project management”. Morocco, Olszak, C. M., and al. (2012). “Critical success factors for implementing business intelligence systems in small and medium enterprises on the example of Upper Silesia, Poland”. Interdisciplinary Journal of Information, Knowledge, and Management, 7, 129-150. Olugu, E.U., and al. (2010). A Comprehensive Approach in Assessing the Performance of an Automobile closed loop Supply Chain. Sustainability, 2, 871-879. Rajeev, A., and al. (2017) ‘Evolution of sustainability in supply chain management: a literature review’, Journal of Cleaner Production, Vol. 162, pp.299–314. Rakesh K. Mudgal and al. (2010), “modelling the barriers of green supply chain practices: an Indian perspective”. Int. J. Logistics Systems and Management, Vol. 7, No. 1, 2010 81 Rina (2012) “Project Design Document Form of Attero Recycling Private Limited”. Unfccc(2013)“Validation Report-Greenhouse Gas emissions reduction by recovering metals andmaterials through Electronic Waste collection and recycling process performed at Attero Recycling Pvt Ltd plant located in Roorkee, Uttarakhand, India”. Wu, G. C., and al. (2010). “The study of knowledge transfer and green management performance in green supply chain management”. African Journal of Business Management, 4(1), 044-048. Zavadskas and al. (2016). “Hybrid multiple-criteria decisionmaking methods: A review of applications in engineering”. Scientia Iranica. Transaction A, Civil Engineering, 23(1), 1.

9. MODEL VALIDATION The objectives of the proposed model are, first to assess the maturity level of the SC of SMEs in automotive industries, and second, offer a support for them to develop an improvement roadmap for their SC. Our model validation examines whether this model is suited for these two uses. The model also facilitates research on the SC’s weak spots, where actions need to be put in place. To evaluate the model in an actual industry setting, we conducted a pilot test with Moroccan Small-sized enterprise that accepts to participate in the study. For confidential reasons we will call this society “SYMAR”. The maturity level for the case studied is generally classified in level 1, so it can be said that it is an effective company in its SCM. After the assessment of maturity level, based on the proposed model, we developed an improvement roadmap for SYMAR’s SC process. Our SC MM has given remarkable results on this company because it allows us to evaluate and measure the level of maturity of each chain to put the points on the shortcomings of this enterprise. Therefore, the proposed MM allows the SME to evaluate their SC and determine how to improve it. Table 6. MM test on a Small Moroccan company. SYMAR’ LOGISTICS CHAIN MATURITY LEVELS Dimension Level Situation 1 Effective Purchase & Supply 1 Effective Production 2 Efficient Storage & Distribution 1 Effective Sales 10. CONCLUSION AND PERSPECTIVES Based on the SCM’ barriers to deduce the pertinent CSFs on the one hand and the analysis of SC MMs on the other, a three-dimensional MM for SMEs has been developed. The proposed MM allows automotive SMEs to assess their SC and guide them to improve their performance level. Furthermore, the study allowed us to validate our model and make a first observation regarding the importance of putting in place a strategic vision of the SCM. In addition, in order to ensure an overall improvement and performance of the SC’ studied company; we have developed an improvement roadmap plan adapted to the demands and expectations of companies in the automotive sector for continuous progress at national and international level. The perspective of our work is to further practice our model by conducting the study on a dozen national and multinational companies. This will allow us to better understand the factors influencing the SC maturity of automotive companies and thus define improvement actions to develop and put their SCs active and always in progress. REFERENCES Belin-Munier, C. (2014, May). “Logistique, chaîne logistique et SCM dans les revues francophones de gestion : quelle dimension stratégique?”.In XXIIIème conférence de l'Association Internationale de Management Stratégique (26-p) Chafik, K., & Boubker, O. (2016). “Information Systems, performance and Process maturity: Elaboration of a theoretical 2099