Supply chain risk: empirical research in the automotive industry

Abstract

Supply chain risk management (SCRM) has become a popular topic over the past decade. It is not a surprise that the automotive industry has been a motivating arena for research within this field; however, the few existing empirical studies reveal that SCRM practices within this industry are still in their infancy. Because the identification of risks can be viewed as the trigger for SCRM, attempts to develop a risk profile for this industry that could serve as a guide to start the SCRM process are needed. This research identifies the main risks along the automotive supply chain by investigating their manifestation in three supply chains in Brazil and offers an initial risk profile for the Brazilian automotive industry. Although the importance of SCRM has been recognised by all analysed companies, the research findings underline the lack of preparedness regarding either identifying risk or considering risk-mitigation strategies and risk assessment. In this context, this study identifies the main risk in which a supply chain can be exposed, through the analysis of real-life manifested risks along different supply chains, as a way to help the supply chain start a SCRM process.

Keywords:

• supply chain management
• risk profile
• multi-tier case study
• vehicle manufacturer

Acknowledgements

The authors gratefully acknowledge MCT/CNPq (research projects: 590030/2010-8 and 307996/2011-5) and CAPES/DFG (BRAGECRIM research project: 010/09). The authors are also very grateful to the editors and two anonymous referees for their constructive suggestions.