Risk Mitigation in Automotive Supply Chain: An Empirical Exploration of Enablers to Implement Supply Chain Risk Management

Abstract

Supply chain (SC) risk management (SCRM) is a high-level concern for SC professionals. Supply chain risk management implementation is a difficult task because it requires involvement of various firms across the SC. For effective SCRM implementation, managers need to know the enabling factors and their relative importance. In this research, an empirical study on SC risk mitigation enablers was carried out in Indian automotive industry to examine the relationship between SCRM enablers and SCRM implementation. This relationship was tested using discriminant analysis. The research shows that the most important enabler is information visibility and it is followed by incentives alignment. Contingency planning is the third-most important enabler and last is risk management governance (RMG). Success of the SCRM implementation in terms of its efficiency and effectiveness can be assured by following the sequence of SCRM enablers suggested in this research.