The global automobile industry makes for an interesting study as the industry has greatly evolved over the decades. The industry has undergone a high level of innovation and is still working towards making the operations in the industry as lean as possible and integrates the different partners in the industry to make way for efficient business processes for the automobile companies operating in the automobile industry.Two models of operations have been noted in the automobile industry. One pertains to the contractual business model which is based on the agreement of contracts between the different parties operating on the automobile industry like the suppliers, the automobile manufacture, the resource provider and the dealers. In this model the companies operate at an arm’s length from each other in a very formal manner. No integration of information systems or a platform of integrative communications is requires to be set up. In this model all the parties operate to maximize their bargaining power in their respective deals and interactions with each other. The other business model is that of the relational nature in which the parties operation in the industry specific to the suppliers, the automobile manufacture, the resource provider and the dealers come into a relationship whereby they try to minimize the costs associated with wastage. This model highlights the high level of involvement of all the parties concerned in the relationship and the parties need to create a platform where they can interact with each other on the momentous basis and can share information about the status of the business processes and the needs of the other parties.
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