Research On Supply Chain Risk Management With Automotive Manufacturing As Its Core

In2011, China’s automotive production and sales has reached18million, which makes itbecome one of the biggest countries in automotive industry of the world. The automotiveindustry plays an important role in boosting employment, upgrading the national’s industrialstructure and transforming the scientific and technological achievements. It is a main pillarindustry of China’s economy. The degree of “horizontal integration” of the automotivemanufacturing industry is very high, and each car contains tens of thousands of parts, so it isimpossible for any car manufacturer to complete the whole process which contains the partsand components production, the vehicle assembly and the final product selling to customersindependently. They must be united with the upper and lower enterprises to build a supplychain in order to participate in market competition. Thus, we will say that the competitionbetween automotive manufacturing enterprises is actually a competition between their supplychains. However, with the acceleration of the global economy integration process, theuncertainties of the supply chain faces increase significantly. Once a risk happens, it willdamage or even ruin the whole chains. In recent years, there have been recalls of vehiclesacross the world in many car manufacturers including Toyota, Honda and GM,which soundedthe alarm for China’s automotive manufacturing industry. Therefore, how to control the risk ofa supply chain of the automotive manufacturing industry to ensure its normal operation hasbeen a common concern among many theorists and entrepreneurs.Of domestic and foreign most of the studies about the supply chain risk of automotivemanufacturing are focused on some specific risk, or some stage of the supply chain riskmanagement process, while less comprehensive study of the automotive supply chain risk.This paper is based on theories of supply chain management and risk management, and therisk factors of automotive manufacturing’s supply chain will be analyzed from three aspects:external environment, internal processes and cooperation. We establish the evaluation indexsystem of the automotive manufacturing supply chain, which includes eight first-level indexesand39secondary indexes. Moreover, with the combination of Fuzzy ComprehensiveEvaluation and Analytic Hierarchy Process, level of the whole supply chain risk is calculatedand evaluated. When carrying out risk identification, analysis of the risk factors of the internalprocesses is based on the five processes of the SCOR model and uses the Delphi method toconfirm the initial identification of the risk factors. Finally we build a supply chain riskcontrol system of the automotive manufacturing.