Automotive Supply Chains Risks and Mitigation Strategies

The safety aspect for risk management will evaluate the potential for human loss of life and or injury. The potential for major incident or accident, such as fire, explosion, or spill, including environmental damage. The necessity for security within the company is a highly need aspect of safety that can lead to risk. The revenues aspect for risk management will evaluate the loss of customer base, recovering of capital loss and recognizing uncoverable capital loss, and loss of opportunity in marketing of the product. The necessity for revenue risk management is key. The costs aspect for risk management will evaluate the costs that were incurred due to preventable problems. Also, costs due to increased warehouse space, vendor changes, and discount changes. A significant risk in cost for this company is the cost of legal defense. The legal aspect for risk management will evaluate regulatory compliance failures and actions that could result

Changes within the supply chain can disrupt the normal flow of goods and services because each change hasn’t been fully scrutinized. A firm can plan and speculate that a change with have a certain effect on the supply chain, but until those processes have been measured it is impossible to know the true cause and effect of any disruption.

At the end all the risk are finance related, because the liability’s cost money and this will have an effect in the company’s earnings, so what is important is not only to try to avoid such events but also to be prepare in case they happen and have a plan, is like the saying “Hope for the best but be prepare for the worst”.

With the upcoming Presidential election, there is a very real possibility of big political challenges; as well as, major changes to international trade policies facing the American Automotive Companies. Political changes, locally and abroad, are having an effect on the automotive industry. Britain recently voted to exit the European Union; this event, which is being called Brexit, is having a ripple effect across the world. The full result of Brexit won’t be known for two years or more, but with the automotive industry having such a large presence in the U.K, an anticipated change is in full effect. In general, for the next two years, global automakers will need to pay attention to the market; be prepared for unanticipated changes; and ready for the possible need of contingency plans. This is especially crucial as negotiations take place between Britain and the EU. Ian

Risk in relation to functions- HR management, economic operations, OHS, supply chain, local governance and compliance issues.

In a typical supply chain, raw materials are procured and items are produced at one

In this project, we will be studying Canadian Tire Auto Services’ main supply chain strategies. Canadian Tire provides many automotive services for their clients with many locations across the countries. Our goal for this project will also be to look into Canadian Tire’s logistics operations, their process of supplier selection, and evaluation. We will also look to study their use of the latest IS/IT innovations. We will then conclude our project by realizing the importance of supply chain management integration, as well as, the challenges and practices within a global supply chain.

Potential key risks have been identified in the earlier sections of this project as this is task three of assessment number one. There are four risks that the board have particularly picked according to the level of risk and its likelihood that could affect the company. These risks include the following:

The impact of the risks on global business it is dramatic in our days, changing the entire look of the industries and financial services. Some risks could be anticipated and identified but some could not. Companies now are using more and more key steps and principles to better manage the risks by;

1. What are some of the advantages of the supply chain used in the Japanese auto industry before the March 11 earthquake and tsunami? What were some of its disadvantages?

Just like the other industries such as apparel, electronics, and consumer goods, the automobile industry has accelerated its foreign direct investment, cross border trade and global production. The automobile industry has increased outsourcing and bundled value chain activities in major supplier chains. As a result, more developed countries that serve as suppliers have increased their involvement in trade and FDI. With these increased supplier capabilities, large national suppliers have become global suppliers and are now controlling multinational operations. This is because of their increased capability of providing good and services to various lead firms all over the world. The automotive industry has a distinct firm structure. This

Supply chains represent the procurement, production and distribution activities of an organisation. Within a supply chain, these activities are viewed as linked and reliant on one another to produce the final outcome. It is believed that if one component of the chain fails, the whole chain is broken and product/service delivery goals will not be achieved.

The financial crisis starting in 2008 and the following recession hit hard the US auto sector. Traditional car makers had to realise that substantial changes were needed in order to maintain their strong position in the

Indeed use of third-party logistics (3PL) firms in transportation helps firms to meet complexities of global trade, worldwide increased competition, as well as the constant downward pressure in terms of prices and margins. This is in a bid to build up better logistic systems that can fulfill their needs for better services at a lower cost. Among the reasons as to why companies use 3PL firms is to outsource non-strategic activities which enables organizations to concentrate on the major competencies as well as to exploit external logistics expertise, (Ivan Su Hertz, Susanne, 2009). These third party firms have the capability of developing unique assets, acquiring the necessary resources and achieving superior logistics performance using 3PL relations. Companies therefore find it efficient and effective method of achieving the needed service with no engaging so much in investing new capabilities and in assets upon entering into a relationship with 3PL firms.

The characteristics of the global motor vehicle industry are a boom in certain places and a bust in others all due to economic conditions in different nations. Four years after tow of Detroit Michigan’s big three went into bankruptcy American car makers are going “full throttle” with sales in August hitting an annual rate that if substantiated can take them back over 16 million and that is a rate that was last hit before the economic crisis and 80% higher than 2009 when GM and Chrysler went into bankruptcy. The opposite is happening in Europe being in its sixth year slump now and with a weak economy, high petroleum prices and an aging