Case studies of risk communication in automotive part manufacturers

Abstract

This study explores how automotive part manufacturers communicate supply chain risk at different levels of the supply chain. Based on the interviews with the top managers at three selected case companies, this study reveals that risk communication is mostly performed in reactive manner although slight evidence also exists to support the presence of preventive risk communication. Risk-related information sharing is also limited from 2nd-tier and beyond. This study also found the involvement of parent and sister companies in risk communication activities. The limitation of this study comes from the small sample size. However, this study suggests companies to focus on developing long-term relationship with supply chain partners to develop trust and increase risk awareness so that each party truly understands the paramount importance of risk communication.