INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNO V A T ION (IJRSI)

ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |V o lume XII Issue XI November 2025

Role of Quality Management Practices in Enhancing Supply Chain

Performance of Automobile MSMES

Meenakshi Choudhary^1*, Dr. Puja Kumari^2*

¹Research Scholar, Department of Economics, SDU, Ghatsila

²Assistant Professor, Department of Commerce & Management, SDU, Ghatsila,

*Corresponding Author

DOI: https://dx.doi.org/10.51244/IJRSI.2025.12110140

Received: 03 December 2025; Accepted: 09 December 2025; Published: 19 December 2025

ABSTRACT

The automobile industry plays a vital role in the industrial ecosystem of the Adityapur–Gamharia region, one of

Eastern India's prominent automotive manufacturing hubs. Efficient supply chain management (SCM) is crucial

for maintaining competitiveness, cost-effectiveness, and timely delivery in this sector. This study evaluates the

supply chain performance of selected automobile and ancillary units in the Adityapur–Gamharia industrial belt.

The study focuses on the performance of qualitative indicators, such as collaboration, technology adoption,

flexibility, supplier relationships, digitization and adaptability to market changes. Findings indicate that while

firms have made notable progress in integrating technology and streamlining communication, persistent

challenges remain in logistics coordination, demand forecasting, and supplier responsiveness. The study provides

a comprehensive understanding of the human and organizational factors influencing supply chain performance

and suggests strategies to enhance resilience, collaboration, and longterm sustainability in the regional

automotive ecosystem.

Keywords: Supply Chain Management, Qualitative Analysis, Automobile Industry, Adityapur-Gamharia,

Performance Evaluation, Supplier Relationships, Technology Adoption

INTRODUCTION

The Indian automobile industry serves as a powerful engine for economic growth, contributing significantly to

the nation’s GDP and industrial output. Central to its success is the performance of its intricate supply chain, a

complex web of manufacturers, ancillary units, and logistics providers responsible for delivering high-quality

products in a competitive global market. Within this landscape, the Adityapur-Gamharia industrial region in

Jharkhand stands out as one of Eastern India’s most vital automotive manufacturing hubs. Historically

recognized as one of Asia’s largest industrial zones, it hosts around 1,200 to 1,500 Micro, Small, and Medium

Enterprises (MSMEs), with a staggering 85% dedicated to manufacturing auto parts and related components. Its

strategic location near major Original Equipment Manufacturers (OEMs) like Tata Motors has cemented its role

as a critical node in the national automotive ecosystem.

Despite its strategic importance and significant production capacity, the Adityapur-Gamharia cluster grapples

with substantial supply chain challenges that threaten its long-term competitiveness and sustainability. The

region’s heavy reliance on the cyclical business of a single major OEM exposes its ancillary units to significant

vulnerability during periods of market slowdown, a weakness starkly highlighted during the 2019 automotive

recession and subsequent global disruptions. In the modern era, efficient supply chain management (SCM)

transcends basic production and delivery. It demands sophisticated technological integration, agile adaptation to

market volatility, and deep, collaborative partnerships that extend beyond traditional transactional interactions.

The global shift towards Electric Vehicles (EVs) and the adoption of Industry 4.0 principles further underscore

the urgent need for a thorough evaluation of the region’s existing supply chain capabilities.

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INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNO V A T ION (IJRSI)

ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |V o lume XII Issue XI November 2025

This study provides a qualitative evaluation of the supply chain performance within selected automobile and

ancillary units in the Adityapur-Gamharia industrial belt. Moving beyond purely quantitative metrics, the

research focuses on crucial qualitative indicators such as inter-firm collaboration, technology adoption,

operational flexibility, the nature of supplier relationships, the extent of digitization, and adaptability to market

changes.

Background Context

The Adityapur-Gamharia industrial region, located in Jharkhand's Seraikela-Kharsawan district adjacent to

Jamshedpur, represents one of Eastern India's most significant automotive manufacturing hubs. Spanning over

33,970 acres, the Adityapur Industrial Estate has historically been recognized as Asia's largest industrial hub,

housing approximately 1,200-1,500 operational units with nearly 85% engaged in auto parts manufacturing and

ancillary activities. The region's strategic proximity to Tata Motors and Tata Steel has established it as a critical

node in India's automotive supply chain network.

With an average annual production exceeding ₹4,950 crores, the industrial belt comprises a diverse ecosystem

of Micro, Small, and Medium Enterprises (MSMEs), large-scale industries, and export-oriented units. The region

benefits from excellent connectivity infrastructure, positioned just 7 km from Tatanagar Railway Station and 130

km from Ranchi Airport, facilitating seamless domestic and international logistics operations. More than 30 units

currently function as 100% export houses, supplying automotive components to markets across the USA,

Australia, and Europe.

Research Rationale

Despite its strategic importance, the Adityapur-Gamharia automotive cluster faces substantial supply chain

challenges that impact operational efficiency, competitiveness, and sustainability. The region's heavy

dependence on Tata Motors—which experiences cyclical recessions every 2-3 years—creates vulnerability

across the ancillary network. Historical disruptions, including the automotive sector slowdown of 2019 and

subsequent pandemic-induced constraints, have exposed critical weaknesses in logistics coordination, inventory

management, and supplier resilience.

Contemporary automotive supply chains demand sophisticated integration of technology, agile responsiveness

to market fluctuations, and collaborative partnerships extending beyond traditional transactional relationships.

The transition toward Electric Vehicles (EVs), Industry 4.0 technologies, and sustainable manufacturing

practices further necessitates comprehensive evaluation of existing supply chain capabilities and identification

of improvement pathways.

Research Objectives

This study aims to:

1. Evaluate the current state of supply chain performance in the Adityapur-Gamharia automotive cluster through

qualitative indicators

2. Assess the level of collaboration, technology adoption, and digitization among manufacturing units

3. Examine supplier relationship dynamics, flexibility, and responsiveness to market changes

4. Identify persistent challenges in logistics coordination, demand forecasting, and inventory management

5. Propose actionable strategies to enhance supply chain resilience, efficiency, and long-term sustainability

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INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNO V A T ION (IJRSI)

ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |V o lume XII Issue XI November 2025

LITERATURE REVIEW

Supply Chain Management in Automotive Industry

Supply chain management in the automotive sector involves the coordination of complex networked suppliers,

manufacturers, distributors, and retailers to deliver final products efficiently while meeting quality standards and

competitive cost structures. The automotive industry's supply chain is characterized by multi-tiered supplier

networks, where Tier-3 suppliers provide raw materials, Tier-2 suppliers manufacture components, Tier-1

suppliers integrate major systems, and Original Equipment Manufacturers (OEMs) conduct final assembly.

Research indicates that supply chain performance in automotive manufacturing is contingent upon multiple

factors including supplier relationships, technology integration, flexibility, and responsiveness.

Afoundational understanding of the unique characteristics of automotive supply chains is provided by González-

Benito, J. (2013) in the paper “Study of supply-chain management in the automotive sector,” published in the

International Journal of Automotive Technology and Management. This study offers a comprehensive overview

of the structure, relationships, and operational practices that define the sector. It outlines the evolution of SCM

from a purely cost-driven function to a more strategic element focused on integration and partnership.

Supply Chain Performance Indicators

The Supply Chain Operations Reference (SCOR) model provides a comprehensive framework for evaluating

supply chain performance through five key dimensions: reliability, responsiveness, flexibility, cost efficiency,

and asset management. These dimensions enable standardized measurement and benchmarking across

organizations. In the automotive context, reliability metrics include on-time delivery (OTD) and order fulfillment

accuracy; responsiveness measures the speed of adaptation to demand changes; flexibility assesses volume and

product mix adjustability; cost efficiency evaluates operational expenses; and asset management examines

inventory turnover and utilization.

Recent studies emphasize that qualitative indicators—including collaboration, communication effectiveness,

trust, supplier involvement, and organizational culture—significantly influence quantitative performance

outcomes.

The direct link between inter-firm collaboration and performance is a critical theme in SCM research. The work

of Cao, M., & Zhang, Q. (2011), titled “Supply chain collaboration: Impact on collaborative advantage and firm

performance” and published in the Journal of Operations Management, provides a robust empirical framework

for this concept. The authors argue that dimensions of collaboration, including information sharing and joint

decision-making, lead to a “collaborative advantage” that translates into measurable improvements in firm

performance.

Technology Adoption and Digitization

Digital transformation in automotive supply chains encompasses integration of Internet of Things (IoT),

Artificial Intelligence (AI), cloud computing, big data analytics, and blockchain technologies. Industry 4.0

principles enable real-time data collection, predictive analytics, automated workflows, and enhanced visibility

across the supply network.

Digital supply chains facilitate Just-in-Time (JIT) and Just-in-Sequence (JIS) manufacturing models prevalent

in automotive production. However, implementation challenges in the Indian context include data quality issues,

infrastructure limitations, high implementation costs, and insufficient integration across departments and

external partners

The role of technology in modernizing supply chains is explored by Yang, M., Fu, M., & Zhang, Z. (2021) in

their article “The adoption of digital technologies in supply chains: Drivers, process and impact,” featured in the

journal Technological Forecasting and Social Change. This study investigates the factors that drive firms to adopt

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INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNO V A T ION (IJRSI)

ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |V o lume XII Issue XI November 2025

digital tools (like IoT and big data) and analyzes the subsequent impact on supply chain effectiveness. It

highlights how technology enables greater visibility and agility.

Supplier Relationships and Collaboration

Effective supplier relationship management (SRM) is critical for automotive supply chain performance. Strong

buyer-supplier relationships characterized by trust, long-term commitment, information sharing, and

collaborative problem-solving lead to reduced costs, improved quality, faster innovation, and enhanced

resilience. The Toyota production system exemplifies successful SRM through deep engagement with a stable

supplier base, joint development activities, and strategic partnerships rather than transactional short-term

contracts.

Supply chain collaboration—encompassing information sharing, decision synchronization, and incentive

alignment—demonstrates positive effects on performance, particularly when combined with supply chain agility.

However, collaboration effectiveness varies based on environmental uncertainties and the structural

characteristics of the supply network. Studies indicate that Indian automotive OEMs increasingly emphasize

vendor consolidation, with initiatives like Tata Motors' "One Part One Vendor" system aimed at reducing supplier

base complexity.

Finally, a foundational text that clarifies the meaning of collaboration is from Barratt, M. (2004), published in

Supply Chain Management: An International Journal. The paper, titled “Understanding the meaning of

collaboration in the supply chain,” deconstructs the often-overused term to differentiate between superficial data

exchange and true, deep collaboration built on trust, mutual benefit, and shared goals.

Challenges in Indian Automotive Supply Chains

Literature identifies several persistent challenges confronting Indian automotive supply chains:

Demand Forecasting: The automotive industry operates in volatile markets with fluctuating sales, changing

regulatory requirements, and potential trade disruptions. Traditional regression-based forecasting models

struggle with sudden demand changes, impacting inventory optimization and production planning. Tier-2 and

Tier-3 suppliers face particular challenges due to limited visibility into actual customer demand and delayed

information from upper tiers.

Logistics Coordination: Effective logistics is the backbone of automotive supply chains, ensuring materials,

components, and finished vehicles move efficiently. Just-in-Time manufacturing requires precise coordination,

where even minor transportation disruptions can halt production lines. Indian automotive logistics faces

challenges including inadequate infrastructure, poorly maintained roads, inconsistent supplier performance, and

insufficient real-time tracking capabilities.

Infrastructure and Policy Constraints: Issues such as dual power tariffs, land availability constraints, erratic

water supply, and complex regulatory compliance create operational inefficiencies. The Adityapur-Gamharia

region specifically experiences challenges with power costs (₹5.50 per unit versus ₹2.95 in DVC-supplied areas),

land scarcity for expansion, and infrastructure maintenance deficiencies.

The Indian Automotive Context and Sustainability

To ground the study in a specific regional context, the work of Mathivathanan, D., Govindan, K., & Haq, A. N.

(2018) is particularly relevant. Their paper, “Sustainable supply chain management practices in Indian

automotive industry: A multi-stakeholder view,” published in Resources, Conservation and Recycling, provides

critical insights into the real-world application of SCM practices in India. The study examines challenges and

enablers from the perspective of various stakeholders and emphasizes the growing importance of sustainability.

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INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNO V A T ION (IJRSI)

ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |V o lume XII Issue XI November 2025

Measuring and Building Supply Chain Resilience

Given the volatility of the automotive market, supply chain resilience is a paramount concern. Raaymann, S.,

offers a very current perspective Van Dun, D., & Goedhart, J. (2024) in “Measuring supply chain resilience along

the automotive value chain” published in the Supply Chain Forum: An International Journal. This paper moves

beyond conceptual discussions to explore concrete ways of measuring resilience, examining factors like

adaptability, flexibility, and recovery speed

RESEARCH METHODOLOGY

Research Design

A qualitative, multiple-case study approach was used, supported by semi-structured interviews, SCOR-aligned

performance mapping, and on-site process observations.

Sample Selection (Adityapur–Gamharia Area)

A purposive stratified approach was adopted to capture variation across:

Category

Criteria

Sample Size

Rationale

Micro Enterprises

Small Enterprises

Medium Enterprises

<10 employees, turnover <₹5Cr

10–50 employees

50–250 employees

20

25

15

Majority of cluster population

Significant suppliers to OEMs

Key Tier-1 vendors

Entrepreneurs/Startups

Total

Registered under UDYAM

—

10

Digital adoption focus

Balanced cluster

70 respondents

Table 4. Key Variables and Their Operational Definitions

Variable

Type

Measurement Scale

Likert (1–5)

Description

Efficiency, responsiveness, reliability

Supply Chain Performance

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INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNO V A T ION (IJRSI)

ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |V o lume XII Issue XI November 2025

Digital Transformation

Variable

Independent

Type

Likert (1–5)

ICT use, automation, ERP adoption

Description

Measurement Scale

Likert (1–5)

Supply Chain Integration

Logistics Effectiveness

Supplier Collaboration

Mediator

Internal & external integration

Transport reliability, cost efficiency

Independent

Likert (1–5)

Joint planning, CPFR engagement,

information sharing

CONCLUSION

This study's evaluation of supply chain performance in the Adityapur-Gamharia automotive industrial cluster

reveals a complex landscape characterized by progressive developments alongside persistent structural

challenges. While firms have demonstrated awareness of contemporary supply chain imperatives and made

notable strides in technology integration, communication improvement, and quality enhancement, significant

gaps remain in logistics coordination, demand forecasting, supplier responsiveness, and strategic resilience.

The regional cluster's heavy dependence on a single major customer creates vulnerability amplified by cyclical

industry dynamics and transformative sectoral shifts toward electrification. Infrastructure constraints, including

dual power tariffs, inadequate road networks, and land scarcity, compound operational challenges. The digital

divide between large, export-oriented firms and smaller domestic suppliers risks creating a fragmented supply

ecosystem where collaboration potential remains unrealized.

Nevertheless, the Adityapur-Gamharia region possesses substantial strategic advantages: an established

manufacturing base with deep technical expertise, proximity to major OEMs and transportation hubs, an

entrepreneurial MSME ecosystem, and growing export credentials. Leveraging these strengths while

systematically addressing identified weaknesses can transform the cluster into a globally competitive automotive

supply chain hub.

The strategic recommendations presented—encompassing resilience building through diversification and risk

management, systematic digital transformation, collaborative relationship development, logistics optimization,

enhanced forecasting capabilities, and proactive EV transition—provide a comprehensive roadmap for

performance enhancement. Successful implementation requires coordinated action across multiple stakeholders:

individual firms investing in capabilities and cultural transformation; industry associations facilitating collective

initiatives; government providing enabling infrastructure and policy support; and academic institutions building

requisite talent and knowledge.

The Adityapur-Gamharia automotive cluster stands at a critical juncture. The choices and investments made

today will determine whether the region emerges as a leader in India's next-generation automotive ecosystem or

faces marginalization amid rapid industry transformation. By embracing collaborative approaches, investing in

digital capabilities, building resilient structures, and proactively adapting to market evolution, the cluster can

secure its position as a vital node in global automotive supply chains while contributing to regional economic

prosperity and employment generation.

The conceptual model highlights the mediating role of supply chain integration and the interlinked impact of

logistics and collaboration, providing a replicable framework for further quantitative validation.

Future research should extend this qualitative assessment through quantitative performance measurement using

standardized metrics, comparative analysis with other automotive clusters, longitudinal studies tracking

transformation progress, and investigation of specific interventions' effectiveness. The evolving landscape of

automotive manufacturing—driven by electrification, autonomous technologies, and sustainability

imperatives—demands continuous adaptation and learning.

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