Inbound Supply Chain Risk Management: A Case Study From an Automotive Manufacturing Firm

Supply chain (SC) risks significantly impact manufacturers, affecting their operations, finances, and business activities. The lead time to arrive of raw material is a critical measure in the inbound SC. This study aims to develop a risk matrix to assess inbound SC risks, thereby enabling predictions of potential for failures and taking proactive measures. Using a case study in an automotive manufacturer and data from a logistics expert interview, the Mean Time to Arrival (MTTA) is identified as a measure for the probability of failure (PoF). The consequences of potential failure (CoFs) consider ‘undesirable MTTA’ and are classified into quantitative (e.g., production stoppages and man-hour losses) and qualitative (e.g., client loss and goodwill) aspects. The study developed a risk matrix to show the interrelationship among PoFs, CoFs, and the corresponding risk levels. It also identified recommended actions for various risk levels and presented an illustrative SC risk assessment. This paper provides practical guidelines for effective inbound SC risk management in manufacturing, aiding decision makers in informed decision-making and enhancing their operations.