To read the full version of this content please select one of the options below:

Supplier risk assessment and monitoring for the automotive industry

Jennifer V. Blackhurst (Logistics, Operations and MIS Department, College of Business, Iowa State University, Ames, Iowa, USA)
Kevin P. Scheibe (Logistics, Operations and MIS Department, College of Business, Iowa State University, Ames, Iowa, USA)
Danny J. Johnson (Logistics, Operations and MIS Department, College of Business, Iowa State University, Ames, Iowa, USA)

International Journal of Physical Distribution & Logistics Management

ISSN: 0960-0035

Article publication date: 14 March 2008

Downloads
10511

Abstract

Purpose

This research aims to develop a supplier risk assessment methodology for measuring, tracking, and analyzing supplier and part specific risk over time for an automotive manufacturer.

Design/methodology/approach

Supply chain risk literature is analyzed and used in conjunction with interviews from the automotive manufacturer to identify risks in the supply base. These risks are incorporated into the development of a temporal risk assessment and monitoring system.

Findings

A framework of risk factors important to the auto manufacturer is presented. A multi‐criteria scoring procedure is developed to calculate part and supplier risk indices. These indices are used in the development of a risk assessment and monitoring system that allows the indices to be tracked over time to identify trends towards higher risk levels.

Research limitations/implications

There are a number of operational issues identified in the paper that could be investigated in future research. One such issue is the development of alternative risk assessment methods that would increase the sensitivity of the risk analysis.

Practical implications

The framework is implementable in firms interested in understanding and controlling risk in their supply base. The research stems from an industry project with an automotive manufacturer. The method is designed to be practical and easy to implement and maintain. The system also has a visual reporting mechanism designed to provide early warning signals for potential problems in the supply base and to show temporal changes in risk.

Originality/value

This paper presents a dynamic risk analysis methodology that analyzes and monitors supplier risk levels over time.

Keywords

Citation

Blackhurst, J.V., Scheibe, K.P. and Johnson, D.J. (2008), "Supplier risk assessment and monitoring for the automotive industry", International Journal of Physical Distribution & Logistics Management, Vol. 38 No. 2, pp. 143-165. https://doi.org/10.1108/09600030810861215

Publisher

:

Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited