Risks in the Automotive Industry Supply Chain

Abstract

This paper presents an action plan which to minimize the supply chain disruptions of trade automotive in Mexico. This research was carried out basically in 5 steps: (a) to apply surveys to suppliers of the automotive industry for (b) identifying and classifying the risk factors in the automotive supply chain. (c) Subsequently to evaluate them through the AHP (d) so that from the principle of Pareto, risk factors are prioritized and (e) finally, design an action plan to minimize or eliminate the risk factors that disrupt supply chain operations. The research finds the critical factors that jeopardize the excellent performance of the chain of supply of the automotive industry. Structured plans do not exempt supply chains from the possibility of risk. However, it helps enterprises prepare them much better to deal with risk, especially in changing, complex, global, and volatile. Risk management is vital in the excellent performance of an organization, and it is advisable to have protection mechanisms. That is part of a structured plan based on a rigorous understanding of the vulnerable points of the extended chain and the application of containment schemes and mitigation in the proper combination of redundancy and flexibility.