Supply chain risk management and risk ranking in the automotive industry

Abstract

Supply chain risk management (SCRM) has a strong influence on the cooperation among partners and the performance of the entire production chain. A supply chain designed to minimize risks enables firms to establish a competitive position and provides long-term benefits to stakeholders. The SCRM system should be structured to manage both routine and extraordinary risks, such as natural disasters and major accidents. The risks should be managed both reactively, by monitoring changes in the chain, the needs of customers, technology and the strategies of suppliers and competitors, among others, to enable quick reaction to events; and proactively, to identify risks and implement actions to prevent them or minimize their impacts. The basic risk management process consists of identifying, evaluating, mitigating and controlling risks. The objective of this paper is to analyze how a carmaker identifies and manages the risk factors in its supply chain. To achieve this aim, we performed a qualitative, applied and exploratory field study of a Brazilian automaker. The data were collected by structured interviews, and the analytic hierarchy process was applied to rank the risk factors, resulting in a risk matrix that can be an instrument for making decisions by the company studied.

An ISM Modeling of Barriers for Blockchain/Distributed Ledger Technology Adoption in Supply Chains towards Cybersecurity

“…Over the past decade, our knowledge and awareness of supply chain risk management (SCRM) have risen due to technological and market turbulence, volatile customer demand, along with competitive intensity [30]. A definition of supply chain risk is "the variation in the distribution of possible supply chain outcomes, their likelihoods, and their subjective values" [31].…”

Risk Assessment of New Energy Vehicle Supply Chain Based on Variable Weight Theory and Cloud Model: A Case Study in China

“…The development of new technologies, such as 5th generation mobile networks, challenges the technical development of NEV. Accordingly, the potential for technological innovation is a safeguard to continuously advance the safety level, efficiency, and quality of the supply chain [22,23,28].…”

“…The logistics distribution risks between diverse nodes mainly predicate the interruption caused by the choice of transportation methods, the arrangement of transportation batches and quantities, third-party logistics service providers, and other unexpected factors [23,34]. An unreasonable design of the logistics distribution network may initiate delays in delivery, which, in turn, will cause out-of-stock losses, and thus, would bring a poor consumer experience to consumers, adversely exerting a bad influence on car brands.…”

“…However, in virtue of its bulkiness and complexity, it faces many risks in the transformation and innovation stages. Consequently, there is a tremendous necessity to assess the risks faced by the supply chain of new energy vehicles in this period; yet there are relatively few studies on the risk assessment of the NEV supply chain [22,23]. Most studies only focus on a single risk factor, and a comprehensive and exclusive assessment of NEV supply chain risk in the transition period is rarely involved.…”

Evaluating Supply Chain Resource Limits From News Articles and Earnings Call Transcripts: An Application of Integrated Factor Analysis and Analytical Network Process

“…Results showed that the risks perceived from the second tier are higher than those of the first-tier suppliers in the chain. Dias, Hernandez, and Oliveira [24] determined the risk factors for the automobile sector through a survey and then applied the Analytic Hierarchy Process (AHP) to rank the risks. The developed instrument provides a platform to assess the risk score for automobile companies.…”