Supplier Risk Assessment and Monitoring for the Automotive Industry

Posted: 6 Jul 2011

See all articles by Jennifer Blackhurst

Jennifer Blackhurst

Iowa State University

Kevin P. Scheibe

Iowa State University - College of Business

Barnabas D. Johnson

affiliation not provided to SSRN

Date Written: 2011

Abstract

Purpose: This research develops a supplier risk assessment methodology for measuring, tracking, and analyzing supplier and part specific risk over time for an automotive manufacturer.

Design/Methodology: 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: 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.

What is Original?: This paper presents a dynamic risk analysis methodology that analyzes and monitors supplier risk levels over time.

Keywords: Supplier Risk, Temporal Assessment, Proactive Risk Management

Suggested Citation

Blackhurst, Jennifer and Scheibe, Kevin P. and Johnson, Barnabas D., Supplier Risk Assessment and Monitoring for the Automotive Industry (2011). Available at SSRN: https://ssrn.com/abstract=1879424

Jennifer Blackhurst

Iowa State University ( email )

613 Wallace Road
Ames, IA 50011-2063
United States

Kevin P. Scheibe (Contact Author)

Iowa State University - College of Business ( email )

2340 Gerdin Business Building
2167 Union Drive
Ames, IA 50011-2063
United States
515-294-0545 (Phone)
530-323-8323 (Fax)

HOME PAGE: http://https://pages.business.iastate.edu/kscheibe/

Barnabas D. Johnson

affiliation not provided to SSRN ( email )

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