AAA Automotive Supply Chain Management: Challenges and Integration

This report critically evaluates the supply chain management processes within the Arabian Automobile Association (AAA), focusing on the automotive sector. It identifies key characteristics such as integration, operations, purchasing, and distribution, while also addressing challenges like globalization, customer preference, and market growth. The study emphasizes the importance of inter-organizational relationships in reinforcing supply chain integration and highlights how AAA utilizes advanced technologies, including big data analytics, the Internet of Things, and cloud computing, to maintain a competitive edge. The report provides examples of how these technologies contribute to cost savings, time reduction, new product development, market understanding, and online reputation management. Ultimately, the analysis underscores the complexity and dynamism of modern supply chains and the strategic importance of technological adoption for sustained competitive advantage in the automotive industry.

Running Head: SUPPLY CHAIN
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Executive summary
The main aim of this study is to evaluate the supply chain management process of AAA
(Arabian Automobile Association). Initially, Arabian Automobile Association has a
combination of characteristics like integration, operations, purchasing, and distribution. It
also faces certain challenges in the supply chain like customer preference, market growth,
and globalization. Moreover, it is found that inter-organizational relationships reinforce
supply chain integration. In last, it discusses four kinds of advanced technology like big data
analytics, Internet of Things, cloud computing is practiced by the firm for securing their
confidential information and increase the probability of getting higher competitive benefits.

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Table of Contents
Executive summary...............................................................................................................................2
Introduction...........................................................................................................................................4
Main characteristics, barriers, and challenges of the supply chain.........................................................4
Inter-organizational relationships reinforce supply chain integration....................................................6
How advanced technology (e.g., big data analytics, Internet of Things, cloud computing) are utilized
by companies within the sector to maintain their competitive advantage..............................................7
Supply chain is a dynamic network of great complexity.....................................................................10
Conclusion...........................................................................................................................................12
References...........................................................................................................................................13

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Introduction
AAA (Arabian Automobile Association) offers automobile assistance services in the Middle
East of Qutar since 2006. Qatar has a growing economy as compared to all countries of GCC.
This organization mainly assists in the emergence of the organization. AAA is the
organization that controlled all levels of the firm in a systematic manner. Our operations
department consider qualified and experienced people in their organization to offer their
services. This organization commits ourselves to offer positive and fastest services to their
potential consumers, which leads them to make their positive image in the marketplace
(Arabian Automobile Association, 2019). This report mainly discusses the main
characteristics, barriers, and challenges of the supply chain. Further, it demonstrates the
impact of inter-organizational relationships on reinforce supply chain integration. In last, it
discusses different advanced technology like big data analytics, Internet of Things, and cloud
computing that practiced by the firm for maintaining their competitive advantage.
Main characteristics, barriers, and challenges of the supply chain
Characteristics of the supply chain
The supply chain is the process, which might use to produce as well as distribute the
commodity. The commodity may be products and services, but either method, there requite to
be specific trade part for products and services to be developed. Furthermore, it is examined
that supply chain management is effective in producing the best outcome by evaluating the
whole process of the supply chain as it could be vital for business growth (Christopher,
2016). There are certain elements that be considered by Arabian Automobile Association
like integration, operations, purchasing, and distribution. These are discussed below:
Integration
In supply chain management, integration could lead to the heart and brain of the supply
chain. The supply chain management is the procedure of integrating means of organizing
communication between the supply chain and timely outcomes. Discovery of new software
means to improve the communication level between departments. There are certain factors
that are considered in the supply chain management like time, cost, and budget.
Operations
The operations are the second element that is considered as a supply chain management. It
demonstrates the day to day operation activity of the firm. It also leads to making a favorable
decision in the context of the current matter (Aikat, Akella, Chase, Juels, Reiter, Ristenpart,
& Swift, 2017). It makes planning for improving the existing condition of the Arabian
Automobile Association. The operation will maintain the inventory of the firm. The

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organization uses forecasting method as it facilitates to evaluate products, marketing
strategies, consumers and make a reliable decision in the context of business. It could directly
impact on overall performance of the organization
Purchasing
The supply chain process of Arabian Automobile Association could consider different
sources like materials and products that are required to produce the goods and services of the
company. Purchasing creates a relationship with suppliers and determines the quantities and
qualities of requisite items. It is imperative in buying to maintain the budget of the
organization and adhering standards of higher quality (Duncan & Whittington, 2016).
Distribution
Distribution coordinates could support to the firm for operating the business and reach the
realizable conclusion. The communication logistics among wholesalers, clients, and retailers
could be accountability of distribution part in command of the supply chain. In addition, the
Arabian Automobile Association could identify the shipments and comprehend not only what
is required in-house to create goods but also that goods get to end-customers on the specified
time (Harvey & Harvey, 2014).
Challenges of supply chain
In the automobile industry, the organization could be confronted from different issues, as it is
associated with several components. A consumer demanding innovative products as it is
complex for a firm to maintain it at a reasonable cost with less time. It develops a test for
organizations since developing both cost-effective supply chain is critically complex. It is
addressed that these challenges might affect the productivity of the organization (Jaiswal &
Rohankar, 2014). There are certain elements that are faced by Arabian Automobile
Association:
Globalization
The globalization is one of the biggest challenges for Arabian Automobile Association as it
declines the probability of getting a positive outcome due to higher competition level. With
respect to accomplishing expectation of consumers, companies need to relocate the cost of
manufacturing across the nation due to decline the indirect as well as direct cost. It could also
lead to the organization in selecting suitable price in the favor of customers’ needs to satisfy
them for long-term. Moreover, international suppliers contribute their best by delivering
specified products and services in the least time and cost. The consumer wants to contribute
their products and services in lower cost but at the same time, they also required their goods

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and services on time that becomes a major issue for the firm (Kalloniatis, Mouratidis,
Vassilis, Islam, Gritzalis, & Kavakli, 2014).
Consumer preference
The global supply chains could be a complex issue for the firm but it is found that preference
of consumers could also be a major issue for Arabian Automobile Association to sustain their
position in the marketplace and make a reliable decision. Innovation is significant since it
permits organizations to stay modest in the marketplace, but it is also a major challenge. The
organization could offer an opportunity to redesign its supply network and meet demand in a
reliable manner. It could lead to making a reliable decision in the working place.
market growth
Another element that demonstrates the challenge is the pursuit of new consumers. Moreover,
the product cost of research and development product is more imperative as compared to
other goods. Hence, Arabian Automobile Association is trying to increase its distribution for
their emerging market with respect to increase their revenue and market share. Organizations
could get higher competitive benefits in the least time and cost. Moreover, there are certain
factors that are considered in the supply chain management like trading fees, policies, and
government rules to make a favorable decision in the context of current matter (Srivastava &
Kumar, 2015).
Inter-organizational relationships reinforce supply chain integration
The Inter-organisational relationships (IOR) could directly positively impact on supply chain
management. Inter-organizational relationships are possible by considering different factors
like strategic alliance, information sharing, and process coordination. It is found that inter-
organizational relationship could facilitate employees to work together and determine
changes across an organization and accomplish their goal in a systematic way. Inter-
organizational relationship supports to develop the interaction that can affect the supply chain
integration. The interaction could work as the bonding tool, which leads to each individual in
performing well in a team. The inter-organizational relationship could lead to the firm for
frequently, accurate, on time, and accurate information sharing at the working place for
integrating the supply chain. It could also lead to the firm for directly sharing the information
in leats time and cost. It is also found that behaviors and attitudes could directly accountable
for social interaction. For illustration, the Arabian Automobile Association has to make a
positive relationship between employees for making robust relationship among employees for
supply chain integration (Srivastava & Kumar, 2015).

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It is also addressed that effective personal communication could play an imperative role in
solving the issues related to the IOR of supply chains overlapping. The handling cost, as well
as technology, could affect the IOR as well as supply chain integration. IOR and SCM offers
an opportunity for completing many activities like use commercial sensitive data, increase
switching cost, inflexibility, costs co-ordination, and inflexibility issues. It could also lead to
the organization for improving the productivity of the organization.
How advanced technology (e.g., big data analytics, Internet of Things, cloud computing) are
utilized by companies within the sector to maintain their competitive advantage
In the current era, it is mandatory for the firm to use advanced technology and maintain its
competitiveness for the long-term. There are different kinds of technology that are considered
by the Arabian Automobile Association like big data analytics, internet of things, and cloud
computing. These tools are effective to make higher competitive benefits. Big data
management is vital for managing the collected data in a systematic manner. Every
organization managing their data in a systematic manner. There are different benefits that
facilitate to obtain higher competitive benefits like cost saving, time reductions, new product
development, comprehend market condition, and managing online reputation (Vitti, dos
Santos, Westphall, Westphall, & Vieira, 2014).
Cost Savings
There are two kinds of data can bring to the cost saving like Hadoop and Cloud-Based
Analytics, which is possible at the time of collecting a large amount of data. These tools
could support the firm to determine efficient methods to do business.
Time Reductions
Hadoop is a high-speed tool that is practiced for simply determining new sources of
information that could lead to making a favorable decision in the context of current matter
(Monczka, Handfield, Giunipero, & Patterson, 2015).
New Product Development
By comprehending the consumer satisfaction and needs by analytics, an organization could
create products and services on behalf of the consumer needs.
Understand the market conditions
By evaluating the big data, Arabian Automobile Association could get better knowledge
about the current condition of the market. For illustration, an organization could determine
the product that is demanded by customers by evaluating the purchasing behavior of
consumers on behalf of the trend. Through this, the organization could get ahead of their
competitors (Hugos, 2018).

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Control online reputation
Big data tools could support to the organization for evaluating the sentiment. Hence, the
organization can obtain feedback about the product and services of the firm. The organization
could continuously monitor and enhance the online presence of business then the big data
tool could support in all activities (Hazen, Boone, Ezell, & Jones-Farmer, 2014).
Application of Big data in the organization
The application of big data is being a common tool that is practiced by the Arabian
Automobile Association to get higher benefits. In the current era, Arabian Automobile
Association is capable to evaluate the innovative tool of the competitors as well as their value
to make a favorable decision. Big data could support the firm for creating new opportunities
and growth to deeply evaluate the data of industry. In addition, the organization also
comprehend and optimize procedure of the business. Retailers could simply optimize their
stock as it could be possible by considering the predictive models. This model could consider
different sources like web search trends, social media data, and weather forecast. For
illustration, the organization has used the big data tool to effectively manage a huge amount
of collected data and leads to get a positive outcome (Brandenburg, Govindan, Sarkis, &
Seuring, 2014).
Ways Businesses Can Take Advantage of IoT
The internet of things could be effective in improving organizational performance in the least
time and cost. The internet of thing could lead to getting different advantages like
enhancement in the business opportunity, asset utilization, improve productivity, and cost
saving. These are discussed below:
Increase Business Opportunities
Internet of things (IoT) could be effective in offering different opportunities as it supports the
organization to sustain their business in the marketplace. The internet of thing could drive to
the organization for making innovation in the working place as it could build a strong
business as it would lead to a decline the market time. IoT could increase the probabilities of
getting a higher return on the investment. IoT has offered the methods and approaches by
which organization will be capable to make connectivity between the organization and social
media information (Mangan, Lalwani, & Lalwani, 2016).
Enhanced Asset Utilization
Internet of things could improve asset tracking by considering different sources like
equipment, machinery, and tools as it supports to the organization to make sensor
connectivity that could be effective of the real-time insights. The company could be capable

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to easily solve the issues and easily improve utilization of assets (Wang, Gunasekaran, Ngai,
& Papadopoulos, 2016).
Efficient Processes
The efficient process could be created by considering the internet, internet of things permit
business to improve their existing situation as could be accountable for improving the
business performance of the firm. The data is gathered by considering different sources
factory floor and logistics network, and inventory reduction (Stadtler, 2015).
Improved Safety and Security
IoT services integrated with sensors and video cameras help monitor workplace to ensure
equipment safety and protect against physical threats. The IoT connectivity coordinates
multiple teams to resolve issues promptly (Beske, Land & Seuring, 2014).
Increase Productivity
Productivity plays a key role in the profitability of any business. IoT offers just-in-time
training for employees, improve labor efficiency, and reduce mismatch of skills while
increasing organizational productivity.
Cost Saving
The cost saving could directly impact on the efficacy of the firm. For example, predictive
analytics and real-time diagnostics drive down the maintenance costs. The internet of thing
could support to lead the organization to reach a reliable conclusion. Internet of things could
support to the organization to mitigate different kinds of challenges like an information
management problem, skills to manage IoT, lack of interoperable tools, and security and
privacy matter (Fahimnia, Sarkis, & Davarzani, 2015). Moreover, IoT could eliminate such
challenges for improving the return on investment. IoT is an innovative tool as it assists the
firm in increasing the productivity of the firm. It could also support to improve the efficiency
level of business. For example, Arabian Automobile Association has focused on using the
innovative tool in their business process for increasing the efficacy of firm as it would save
the overall cost of the organization (Waters & Rinsler, 2014).
Advantages of cloud computing
In the current era, the organization has also used the cloud computing tool that assists the
firm in securing their stored data and make a favorable decision in the least time and cost. It
could support to obtain many benefits like reducing overall cost, increase availability,
flexibility and latest updates.
Fewer Costs
Cloud computing could require a huge amount of money for operating their business. The

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cost is required in hardware computing but it could be needed at the time of operating the
business. The organization could save their cost by determining one plan for it and operate
their business.
24 X 7 Availability
In the organization, most of the cloud providers are truly reliable in delivering their services
as most of them keeping an uptime of 99.9%. It could secure online and offline data in the
least time and cost (Beske & Seuring, 2014).
Flexibility in Capacity
The cloud computing could deliver the flexible facility that could be turned down, up, and off
on the basis of user circumstance. For illustration, sales promotion could be vital for the
organization as it directly impacts on the behavior of consumers. It could influence the
overall productivity of the firm. This tool could also lead to the organization to improve its
capability and impact on costs reduction (Fredendall & Hill, 2016).
All over Functioning
The cloud computing could impact on the overall activities of the firm at the international
level that could lead to the firm for getting a positive outcome. The cloud computing makes
the connection between an organization and the internet. The cloud services could lead to use
the mobile app a secure their data storage from the virus.
Automated Updates on Software
The suppliers of servers continuously update their software on the specified area and secure
the data for long-term. It could also secure the time and cost of the organization by
maintaining security without any extra sources and resources (Martínez-Jurado & Moyano-
Fuentes, 2014).
Supply chain is a dynamic network of great complexity
A modern supply chain is a dynamic network of great complexity. Thus, organisations should
strive for developing supply chain strategies, configuring supply chains to maximise
performance and coping with technological changes.
What is the design and implementation of supply chain strategies within Automobile
Sector?
The automobile industry considers following design of supply chain:

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(Source: Srivastava & Kumar, 2015).
From the above analysis, it is evaluated that there are certain factor that might be consider by
the automobile industry like hardware, drivetrain, industrial design, entertainment platforms,
autonomous drive, apps and services, alternative business models, and data analytics. It could
be effective in operating the business and manage the whole supply chain.
How do the organisations configure their supply chains through collaboration, lean
principles and agility?
The AAA uses different principles and strategies to manage the supply chain like
collaboration, agility, and lean principles. The key component of the agile strategy is similar
to the component of supply chain agile. There are different kinds of elements that are
considered by agility like responsiveness of consumer, information and people, and
cooperation between firms and organization changes. This principle make capable to the firm
for changing in the whole process of supply chain due to dynamic changes in the customer’s
requirements. It could also offer a network to the business structure for making changes in
getting higher competitive benefits (Srivastava & Kumar, 2015).
Supply chain through collaboration
In the organization, collaborative planning is one of the imperative areas of the supply chain
management. It could also support to the firm for increasing visibility between downstream
and upstream methods of the supply chain. This principle is used by the organization in the
situation of business partners make joint business plan that could be associated with lucrative
and requirement of sharing the quality data. It could also support to fulfil the customer
requirement. It could be effective in making effective planning towards the customer share an
make value for end customer in least time.
Supply chain through lean principle

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The lean company concentrate on offering the best quality in the shortest time at the time of
maximizing waste thought procedure. It could be effective for eliminating the wastage from
the business process. It could also support to secure time, efforts and cost of the business
process. It will also help to the firm for spending the time of people in the firm to minimize
the waste. The lean principles could consider two principles that are considered in the supply
chain like Just in Time and Kaizen (Fredendall & Hill, 2016). These are discusses as below:
Just in Time (JIT)
Just in time method is used by the firm to evaluate the efforts that are taken during
manufacturing to finish goods time. It could also support to evaluate the time that are taken
by the firm to offer the desire products in least time with quality and quantity. It could be
effective in the supply chain planning (Srivastava & Kumar, 2015).
Kaizen
This is another method used by organization for evaluating the continuous improvement in
each area of the procedure. This philosophy is practised for evaluating the all task of the firm
and reach at the reliable conclusion. It could also support to comprehend different methods
that will support to increase the efficiency of the firm and effectively minimize the firm
wastage that will support to add the supply chain process plan. It could also be imperative for
the firm to minimize the methods to enhance the efficacy (Fredendall & Hill, 2016).
Conclusion
From the above discussion, it can be summarized that supply chain management is effective
for making planning towards day-to-day activity in the firm. It could also support to manage
raw materials and supports to make a favorable decision. Moreover, the organization has
faced many barriers in the supply chain that are associated with Globalization, Consumer
preference, and Market Growth. Moreover, it can also be concluded that inter-organizational
relationships could directly impact on the effective implication of the research outcome. It
can be illustrated that organization could use different kinds of a method like big data
analytics, Internet of Things, and cloud computing as it could assist to the organization for
maintaining their competitive benefits in the least time. It can also be summarized that
organization has used collaboration, lean, and agility for configuring their supply chains in
least time.