RISK MANAGEMENT
FACTS
* One third of supply chains fails to manage risk
+ 37 percent automotive companies does not practice risk management
> Currently 61 percent companies incorporated risk mitigation
> Within 3 years its expected to reach 75 percent
+ Nine out of ten top supply chains expect to have process controls
implemented across logistics and operations and compliance programs in
place with their suppliers and service providersFINDINGS
There is difference in opinion on the benefits of risk mitigation among
automotive CFOs and automotive supply chain executives. The latter don’t
find risk mitigation significant
[i Fsremely signitcant [J Very sgifcant
re 40%
Improved forocast
AAVTOMOTIE FOS
7%
‘accuracy
ssn
so a .
resilioncy ar AUTOMOTIVE CFOS
= w= 28%
soon soa
‘More accurate, 38% %
oom| See wn 2b
AUTOMOTIVE SUPPLY CHAIN EXECUTIVES
Improved rate of 43%
rotum | | AUTOMOTVE CFOS 12%
55% oe
{ ANUTOMOTHE SUPPLY CHAN EXECUTES.RISK MANAGEMENT IN THE SMARTER SUPPLY CHAIN
* Sophisticated demand planning
* Integration with suppliers
* Closer customer and supplier collaboration provide right mix of
vehicles and products
* Strong build to order means no excess inventory with the dealers
+ Smart tags allows spare parts to be traced throughout the supply
chain reducing the risk of counterfeit
+ Instrumented containers collect information and report their physical
location and environmental conditions enhancing cross continental
transit visibility and green lane custom treatment
+ Advanced business analytics helps predicting outcomes and taking
decisions ahead of time.