Using Key Supplier Relationship Management to Enable Supply Chain Risk Management in the Automotive Industry

Abstract

This paper investigates whether manufacturers using key supplier relationship management as a strategic tool will enable supply chain risk management to reduce or mitigate risks. An exploratory qualitative study conducted interviews with five auto manufacturers and five original equipment manufacturers or first-tier suppliers. Analysis found both groups are interested in doing so but that the practice is not wide-spread. Inhibitors include a continuing emphasis on cost, quality and supplier capacity, issues regarding new and smaller supply chain actors, sudden process and production changes impacting suppliers, and lack of auto manufacturer communication and information sharing. Suggestions to address these inhibitors include closer collaborative involvement between auto manufacturers and their original equipment manufacturers in a key supplier relationship management approach.