Supply Chains are only as Good as the Performance of Suppliers
Automotive Original Equipment Manufacturers (OEMs) need to safeguard their supply chains from disruptions to ensure uninterrupted production. Companies must de-risk themselves from contingencies such as supplier bankruptcy by implementing supplier risk management strategies.
In an article in Logisticsit.com, Infosys’ expert analyzes the limitations of strategies adopted by OEMs to de-risk themselves -
Early warning system
OEMs may not be able to monitor the financial health of suppliers through different metrics in the absence of disclosure.
Better understanding of the supply chain
OEMs cannot monitor the different tiers of the suppliers’ supply chains due to limited visibility.
Network of alternative suppliers
OEMs are challenged to build a network of suppliers due to long gestation periods and technology constraints.
Our expert proposes a collaborative procurement platform strategy to create an environment conducive for evaluating aggregate demand and achieving economies of scale.
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Published with permission of Manufacturing & Logistics IT
Author
Sudripto De
Principal, Consulting Services, Manufacturing and Supply Chain Practice, Infosys Limited
Sudripto leads multiple management consulting projects of Fortune 500 companies in supply chain risk management, strategic sourcing, distribution planning and optimization, and core manufacturing excellence. He has more than 16 years of experience in IT and business consulting.
If you have any questions on supplier risk management or want any related information, please e-mail
Related readings:
Management of Supplier Risks in Global Supply Chains
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