The aim of the article is to apply system thinking as the actual source of best practice innovation solution from automotive industry to increase the competitiveness of metallurgic industry. Systems thinking and system theory are currently widely used in a variety of subjects in fields such as computing, engineering, information science, manufacturing, management, sustainable development and the environment. The key assumptions of system thinking are improving mutual interactions between the particular parts of the system and understanding the essential properties of the systems, which derive properties of the parts and interactions. They are quite opposite to the former assumption, which prioritize applying innovations to particular parts and summing them up to an innovative whole, without taking into consideration the essential properties of the whole.Keywords: Supply chain management, System thinking, Productivity
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