CASE STUDY

Supply Chain Risk Management Study on The Automotive Industry in South America

Jul 28, 2017

Category Overview

The automotive industry in South America is expected to witness significant growth in the coming years as it offers huge growth potential due to the reduced car ownership’s and relatively higher disposable income compared to the Asia-Pacific regions. However, the major reason behind the under-performance of this industry when compared to its peers is the social and political instability. As a result, many automotive firms have started opting for supply chain risk management studies to gain a deeper understanding of the supply trends and forecasts.

The Procurement Pain Point and Insights Offered

A leading automotive firm wanted to gain insights on the current supply chain structure, supply trends, and forecasts. The client also wanted to assess the risks associated with demand and supply and evaluate the profitability of their products across the supply chain.

The supply chain risk management analysts at SpendEdge followed an in-depth two step research methodology, which included primary and secondary research coupled with qualitative and quantitative data collection methods to cater to the specific categoryrequest free proposal requirements of the client. During the course of this study, the client was able to identify a signi?cant number of risks that could disrupt supply chain operations. Additionally, the client could quantify and minimize supply chain risks through a chain vulnerability map, which integrates the supply chain business-process model with a diagnostic model. This business-process model helped the client identify numerous categories of vulnerability. Furthermore, with the help of SpendEdge’s supply chain risk management study, the client could assess the global commodity or product prices.

Business Outcome

The supply chain risk management study helped the client identify the structure and current state of the automotive supply chain. Additionally, the client gained insights on the common risks associated with the supply chain and its impact on the market’s landscape.

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