Automotive supply chain risk assessment: An ounce of prevention is worth a pound of cure

For decades, automotive executives have searched for ways to cut costs. One of the more popular methods has been to demand price breaks from suppliers. The thought behind this approach seemed logical — “force” efficiency into the supply chain by making suppliers reduce costs, and thereby reduce costs for automotive companies. For the most part, this technique has worked to reduce costs for automotive companies, but at what price?

This Automotive Sector point of view provides you with an proactive approach to mitigating supply chain risk. The steps outlined allow companies the benefit of not having to experience a supply interruption before they fix a troubled supplier the ability to predict where the next weak link is in a supply chain. It also provides a cost savings by reducing the number of expensive supplier "workouts."



Publications Search Page