Risk management in the automotive supply chain: an exploratory study in Brazil

Abstract

The main objective of this study was to identify the main characteristics of risk management in the automotive supply chain in Brazil, considering companies in the first and second tiers. This objective was achieved through the proposition of three hypotheses that were tested based on a survey of 211 auto parts producers scattered throughout the country, from which 77 completed forms were received. This research enabled us to conclude that the risks perceived in tier 2 are higher than those observed in tier 1. Also, it was possible to verify that the performance of companies in tier 2 (higher risk) is lower than those in tier 1. Contrary to what was observed in the literature, this research could not find evidence to confirm that risk management tools are prioritized to reduce the risk of companies in the supply chain. Therefore, this research contributes to both theory and practice: this is the first study that performs an analysis of risk management in supply chains with tier 1 and 2 companies in the Brazilian automotive industry, becoming an important complement to recent studies on this topic. For practitioners and business executives who manage risks in automotive supply chains in Brazil, this paper shows the reality of the issue in first- and second-tier companies, which can provide them with important contexts for their decision making in the day-to-day business of the automotive sector.