A Study On Risk Identification And Assessment For Supply Chain Of Otis Elevator Company

Recently,the real estate,as one of the most important parts of the service industry,has been accelerated dramatically because the economy is improved,in the meanwhile,the elevator industry is developed tremendously.There are three reasons as follows: first of all,with the growth of the aged population in China,our society will be an aging society which is beneficial to elevator industry;the second reason is due to the life span of the elevator,the average life span is 15 to 20 years.In China,the first batch of the elevator is installed in 2001,that means the life span of these elevators is almost expired which needs to be replaced.Last but not the least,the government give a great support to the elevator enterprises if they could do the modernization for the old elevator in the old residential streets.Based on these reasons,it is a good time for the elevator industry.However,the competition among these enterprises has become fierce.Even some of the enterprises are the leading enterprises of elevator industry,they are also stressful.Therefore,enhancing the competitiveness has become an important issue for these enterprises.This issue has been paid too much attention by many experts.Martin Christopher,an expert in supply chain management area,mentioned that the competition among these enterprises is actually the competition of supply chain.In the paper,the author takes the supply chain of Otis elevator company as an example to implement the risk identification and assessment.To begin with,this paper starts from the background of the situation and introduces the related knowledge of supply chain and risk management;Then,the author combines the situation of the supply chain with the special culture of Otis elevator company,finds out these risks of the supply chain and judges the causes of risks from four aspects such as the external environment,unstable demand,the status of supply and the cooperation among the enterprises.And then,set up a frame of risk identification.After that,the author tries to assess the risk by collecting the related information of questionnaire and combining the rule of Otis elevator company with the risk matrix method.The risk matrix is divided into two dimensions: occurrence probability and serious degree.In the end of the paper,the author takes some effective measures to avoid the risks and minimize the risks based on the result of risk identification and assessment,which is valuable for enterprises.