Effects of modular platforms on suppliers companies: evidence from Volkswagen Polo manufacturing in Navarra (Spain)

Abstract

Purpose – This paper analyzes the effects on local suppliers of the adoption of a modular platform, taking into account different supply-chain relations. Design/methodology/approach – The authors’ research follows an interpretive case study methodology based on a theoretical approach that seeks to validate the approach while making conclusions about the case study. Findings – The traditional pyramidal structure of automotive supply chains has been altered by the consolidation of a much more complex structure, mostly in spatial and geographical terms. The authors find a strong hierarchy resulting from the reinforced market power of the carmaker under study and the respective fragile structural positioning of logistics companies and pre-assemblers. The increased versatility of the assembly plant, considered a consequence of its transition to modular platforms, finds a counterpart in the necessary re-configuration of certain supply relationships. Originality/value – The main contribution of the paper is to connect the defining elements of supply-chain relations with those technical and organizational changes associated with the transition to modular platforms, as well as to analyze changes in the pyramidal structure of the supply chain, from both a spatial and relational perspective