Supplier risk management and supply chain disruption: an Automotive case study

Abstract

The essay aims at analyzing the supplier risk management processes and strategies, with a particular focus on Automotive industry. Indeed, first of all, a literature review provides the main theoretic concepts; among those the definition and related distinction between Supply risk management and Supplier risk management, with a broad description of the different types of risk. Moreover, first chapter clarifies the meaning of lead time, how it works, and what are the main impacts on MRP. Then, Chapter two focuses on the current raw material market crisis, with a special regard to the procurement of semiconductors, identifying the main causes, like COVID-19, China - USA trade war, Ukraine - Russia war, and so on, but also analyzing the effects, with a numerical study of two different lead time scenarios. Lastly, an Automotive company is analyzed as case study, with core focus on the processes and activities which take place in order to avoid any shortage and to prevent supply and supplier risk.