Supply chain risk: empirical research in the automotive industry

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.

[1]  O. Tang,et al.  Identifying risk issues and research advancements in supply chain risk management , 2011 .

[2]  M. Christopher,et al.  Supply chain risk management: outlining an agenda for future research , 2003 .

[3]  S. C. Davis,et al.  Y2K Risk Management: Contingency Planning, Business Continuity, and Avoiding Litigation , 1999 .

[4]  Thomas Y. Choi,et al.  Guest editorial supply chain management as an emerging focus of technology management , 2002 .

[5]  Christopher S. Tang.  Perspectives in supply chain risk management , 2006 .

[6]  W. Hays.  Introduction to Qualitative Research Methods: The Search for Meanings. 2nd ed. , 1985 .

[7]  M. Quaddus,et al.  Supply chain risk management (SCRM): a case study on the automotive and electronic industries in Brazil , 2009 .

[8]  Brian Tomlin,et al.  On the Value of Mitigation and Contingency Strategies for Managing Supply Chain Disruption Risks , 2006, Manag. Sci..

[9]  U. Juettner,et al.  Supply chain resilience in the global financial crisis: an empirical study , 2011 .

[10]  C. Blome,et al.  Supply Chain Risk Management in Financial Crises – A Multiple Case-Study Approach , 2011 .

[11]  M. C. Holcomb,et al.  Understanding the concept of supply chain resilience , 2009 .

[12]  Andreas Norrman,et al.  Ericsson’s Proactive Supply Chain Risk Management-approach After a Serious Supplier Accident , 2004 .

[13]  Arthur Gerstenfeld,et al.  Managing the Supply-Side Risks in Supply Chains: Taxonomies, Processes, and Examples of Decision-Making Modeling , 2005 .

[14]  Olivier Lavastre,et al.  Supply chain risk management in French companies , 2012, Decis. Support Syst..

[15]  F. Sahin,et al.  A model of supply chain and supply chain decision‐making complexity , 2011 .

[16]  E. Hartmann,et al.  Supply risk management: model development and empirical analysis , 2012 .

[17]  Tadeusz Sawik,et al.  Supplier selection in make-to-order environment with risks , 2011, Math. Comput. Model..

[18]  Anna Corinna Cagliano,et al.  An integrated approach to supply chain risk analysis , 2012 .

[19]  F. Cucchiella,et al.  Risk management in supply chain: a real option approach , 2006 .

[20]  Nukala Viswanadham,et al.  Analytical Framework for the Management of Risk in Supply Chains , 2007, IEEE Transactions on Automation Science and Engineering.

[21]  S. Chopra,et al.  Managing Risk To Avoid Supply-Chain Breakdown , 2004 .

[22]  Binshan Lin,et al.  Accessing information sharing and information quality in supply chain management , 2006, Decis. Support Syst..

[23]  Stephan M. Wagner,et al.  An empirical investigation into supply chain vulnerability , 2006 .

[24]  Christopher S. Tang,et al.  The power of flexibility for mitigating supply chain risks , 2008 .

[25]  Stephan M. Wagner,et al.  A comparison of supply chain vulnerability indices for different categories of firms , 2012 .

[26]  Y. Sheffi,et al.  A supply chain view of the resilient enterprise , 2005 .

[27]  Steven J. Taylor.  Introduction to qualitative research methods , 1975 .

[28]  Göran Svensson,et al.  Vulnerability in business relationships: the gap between dependence and trust , 2004 .

[29]  Kent D. Miller.  A Framework for Integrated Risk Management in International Business , 1992 .

[30]  Matthias Holweg,et al.  Theoretical perspectives on the coordination of supply chains , 2008 .

[31]  Jörn-Henrik Thun,et al.  Managing uncertainty – an empirical analysis of supply chain risk management in small and medium-sized enterprises , 2011 .

[32]  Yimin Wang,et al.  On the Value of Mix Flexibility and Dual Sourcing in Unreliable Newsvendor Networks , 2005, Manuf. Serv. Oper. Manag..

[33]  Uta Jüttner.  Supply chain risk management: Understanding the business requirements from a practitioner perspective , 2005 .

[34]  Jennifer Blackhurst,et al.  A model for inbound supply risk analysis , 2006, Comput. Ind..

[35]  I. Chen,et al.  Towards a theory of supply chain management: the constructs and measurements , 2004 .

[36]  I. Nyoman Pujawan,et al.  House of risk: a model for proactive supply chain risk management , 2009, Bus. Process. Manag. J..

[37]  A. Novaes,et al.  A real options approach to a classical capacity expansion problem , 2005 .

[38]  R. Eltantawy,et al.  Securing the upstream supply chain: a risk management approach , 2004 .

[39]  Jörn-Henrik Thun,et al.  An empirical analysis of supply chain risk management in the German automotive industry , 2011 .

[40]  Arnd Huchzermeier,et al.  Valuing Operational Flexibility Under Exchange Rate Risk , 1996, Oper. Res..

[41]  M. Christopher,et al.  The impact of product design on supply chain risk: A case study , 2008 .

[42]  D. Neiger,et al.  Supply chain risk identification with value-focused process engineering , 2009 .

[43]  H. Walker,et al.  Risk in supply networks , 2003 .

[44]  Morris A. Cohen,et al.  Global Supply Chain Management: A Survey of Research and Applications , 1999 .

[45]  Robert E. Spekman,et al.  Risky business: expanding the discussion on risk and the extended enterprise , 2004 .

[46]  M. Christopher,et al.  Building the Resilient Supply Chain , 2004 .

[47]  Yossi Sheffi,et al.  The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage , 2005 .

[48]  J. Jeng,et al.  Supply chain risk management , 2004, 2004 Semiconductor Manufacturing Technology Workshop Proceedings (IEEE Cat. No.04EX846).

[49]  M. Bloor.  Techniques of Validation in Qualitative Research: a Critical Commentary , 1997 .

[50]  M. Christopher,et al.  Developing Market Specific Supply Chain Strategies , 2002 .

[51]  G. Zsidisin.  A grounded definition of supply risk , 2003 .

[52]  J. Mentzer,et al.  Global supply chain risk management strategies , 2008 .

[53]  Wafik Hachicha,et al.  An integrated approach based-structural modeling for risk prioritization in supply network management , 2014 .

[54]  Kevin McCormack,et al.  Supply Chain Risk in Turbulent Environments – A Conceptual Model for Managing Supply Chain Network Risk , 2009 .

[55]  C. Verbano,et al.  Development paths of risk management: approaches, methods and fields of application , 2011 .

[56]  Thomas J. Goldsby,et al.  Supply chain risks: a review and typology , 2009 .

[57]  S. Chopra,et al.  The importance of decoupling recurrent and disruption risks in a supply chain , 2007 .

[58]  Ravi Shankar,et al.  Mapping supply chains on risk and customer sensitivity dimensions , 2006, Ind. Manag. Data Syst..

[59]  David L. Olson,et al.  Supply chain risk, simulation, and vendor selection , 2008 .

[60]  G. Zsidisin,et al.  On the benefits and risks of focused commitment to suppliers , 2006 .

[61]  R Yin,et al.  Case study research designs and methods , 2014 .

[62]  David Thomas,et al.  State of the art in supply chain risk management research: empirical and conceptual findings and a roadmap for the implementation in practice , 2010, Logistics Research.

[63]  Christopher A. Voss,et al.  Case research in operations management , 2002 .

[64]  Eleftherios Iakovou,et al.  Optimal newsvendor policies for dual-sourcing supply chains: A disruption risk management framework , 2012, Comput. Oper. Res..

[65]  B. Ritchie,et al.  Supply chain risk management and performance: A guiding framework for future development , 2007 .

[66]  A. Barbosa‐Póvoa,et al.  Supply Chain Risk Management Review and a New Framework for Petroleum Supply Chains , 2011 .

[67]  M. Stevenson,et al.  Supply chain flexibility: an inter‐firm empirical study , 2009 .

[68]  G. Zsidisin.  Managerial Perceptions of Supply Risk , 2003 .

[69]  Yon-Chun Chou,et al.  A dynamic system model for proactive control of dynamic events in full-load states of manufacturing chains , 2009 .

[70]  Chad W. Autry,et al.  Supply chain security orientation: conceptual development and a proposed framework , 2008 .

[71]  J. Hallikas,et al.  Risk-based classification of supplier relationships , 2005 .

[72]  Gurdeep Singh,et al.  Supply Chain Risk Management: A Review , 2014 .

[73]  Constantin Blome,et al.  Antecedents of proactive supply chain risk management – a contingency theory perspective , 2012 .

[74]  Cigdem Sofyalioglu,et al.  The Selection of Global Supply Chain Risk Management Strategies by Using Fuzzy Analytical Hierarchy Process – A Case from Turkey , 2012 .

[75]  J. R. Carter,et al.  An analysis of supply risk assessment techniques , 2004 .

[76]  Steven A. Melnyk,et al.  The dark side of supply chain management , 2005 .