Customer-supplier relationship: A multicases study in the Brazilian automotive industry

New forms of relationships and transactions are being practiced between companies participating in the same supply chain to improve the competitive conditions in the chain. The automotive industry is a striking example of a sector in which relationships between companies have undergone profound changes, motivated mainly by the influence of automakers on primary suppliers who, in turn, work with their own suppliers, forming a competitive alliance. This article discusses client-supplier relationships in Brazil's automotive industry, using case studies to ascertain the possible tendency for the formation of a new relational typology among these actors. Technical visits were made to fourteen auto parts suppliers to garner information about the main structural features and the relationship between automakers and suppliers. Interviews were held with top management staff in the areas of production, logistics and supply, product and process development, purchasing, and human resources. The findings indicated that the relationships depend on the supplier's institutional characteristics, the technological complexity of the components, the supplier's production capacity, and the history of client-supplier relations. It was concluded that the client-supplier relationships at the companies surveyed resemble the characteristics of an associative model, with contractual relations and high long-term interdependence, although price is still the main criterion that guides the automakers' choice of suppliers.