Automotive Risk Management Strategies

A wide range of business-critical risks face today’s automotive supplier. Typical risks include material shortages, catastrophic property losses from unforeseen events, supply chain interruptions, IT failures and more. Do you have risk management strategies in place for such events? For tier 1 suppliers, the lack of transparency and control among sub-suppliers adds even more risk to the equation. Now and into the future, with new automotive requirements for risk-based thinking and management, smart planning is imperative. As the automotive supply chain grows longer and more complex each year, any supply chain disruption could have a potential impact on halting global production. From 2011’s tsunami in Japan and 2012’s fire at a German resin supplier to several years of severe Midwest U.S. snowstorms, natural and man-made disasters pose a serious threat to automotive production across the globe.

Automotive Supply Chain Risk Management Strategies, Tools and Best Practices

Because of all the supply chain disruptions which have led to these new industry requirements, this year’s AIAG Supply Chain SummitAutomotive Supply Chain Risk Management Tools and Best Practices  will be held  in Livonia, Michigan on June 14 and will be dedicated to risk management. With the help of QAD, OEMs and Supplier representatives, attendees will learn about the latest automotive requirements and trends for managing supply chain risks. Attendees will also receive guidance on risk management strategies and what organizations will need to do to prepare.

Are You Ready for the New Guidelines and Standards?

Be sure to note the new guidelines and standards. Keep in mind that your organization will be required to address them using risk-based thinking (ISO/TS 16949 – due at the end of the year) and risk management (MMOG/LE version 4 ).  

If your organization is required to complete MMOG/LE or ISO/TS 16949, this event is critical for your organization to attend. At this event, attendees will learn about the risks facing the industry and insights as to what will be required of your organization for future customer reviews and third party audits. I suggest that you bring a team as risk management impacts the entire organization including Executives, Quality, Materials, Purchasing, IT, Finance, Engineering, Sales/Customer Service to name just a few. Your entire team will need to understand what to look for and how to prepare.

The Summit sessions will guide your organization to help you plan for risk-based thinking and management. The Summit will help you answer the following questions:

  • What are the risks that I should be considering as my organization prepares for risk-based thinking and management?
  • What are the critical elements that I will need to address in my risk/action/contingency plans?
  • What are the steps necessary to ensure that I have the proper objective evidence?
  • What are the OEMs looking for when it comes to cyber security and tier 2 (and beyond) risk planning?
  • How are suppliers successfully addressing risk today within their supply chain?

Gain Insight into Automotive Risk Assessment Requirements

I will be presenting the session on “Insight into Automotive Risk Assessment Requirements.”  I will be discussing the new automotive industry requirements for risk-based thinking and management for MMOG/LE version 4, and the upcoming ISO/TS 16949. I will also provide an overview of the steps needed by your organization to be compliant.

April Dines, Corporate Senior Quality Engineer at Cascade Engineering and a QAD customer, will be presenting in the “Expectations for Assessing Risk Between Tier 1 and Sub Tiers” session. April will share a case study on how Cascade is managing risk in the lower tiers. During this session, OEMs will also discuss what should be considered when mitigating risk within the supply chain tiers.

I highly encourage you to register so that you can prepare for these requirements in MMOG/LE and the upcoming TS/16949. You won’t want to miss the insights you will gain at the summit — get your risk management strategies started before it’s too late. Register and view the agenda: 2016 Supply Chain Summit.  I look forward to seeing you there!

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