Risk Assessment in Automobile Supply Chain

One of the challenges that have gained industry's attention is assessing supply chain risks with increasing exposure to disruptions, it is vital for supply chains to manage risks proactively. Across industries, one-third of all supply chains fail to manage risk on a formal basis. The story is slightly worse for automotive companies, with 37 percent acknowledging no formal practices for monitoring risk. Automotive companies trail top supply chains in implementing risk management practices. Prediction of potential failure points and overall impact of these risks is challenging. In this research, we aim to assess the major risks that are encountered in supply chain of automobile industry. The purpose of this paper is to develop a holistic, systematic and quantitative risk assessment for measuring the overall risk behavior. We have used FAHP modeling and further analysis is carried out using Chang’s Extent Analysis Technique. A systematically developed design can be employed to capture the dynamic behavior of risks.