An Empirical Study on Supply Chain Risk Management Strategies in Indian Automobile Industry

Abstract

Supply chain disruptions, major or minor, have affected supply chains negatively. Literature shows that supply chain disruptions also lead to reduction in shareholder value. Supply Chain Risk Management (SCRM) has become a concern for boardrooms, and companies have started to think how they can better manage their supply chains to survive and continue operations. This paper provides insights into SCRM in Indian automobile sector. Strategies used to deal with supply chain risks are explored in this paper. First a taxonomy is suggested based on the review of the extant literature, i.e., proactive strategies, coping strategies, aligning strategies, early warning strategies and survival strategies. These strategies are then empirically tested in the context of Indian automobile industry. A total SCRM strategy index is calculated and the status of Indian automobile industry in SCRM is discussed.