RISK MANAGEMENT IN SUPPLY CHAIN: CASE OF AUTOMOTIVE INDUSTRY

Supply chain across the world is getting more complex with every passing day. Due to globalization, companies are operating internationally, and so their operations have incorporated a plethora of areas. With great expansion, comes great risk as well as therefore, the supply chain of today face great risks when operating at a global scale and these risks hinder their performance. In this study we explore the relationship of supply chain risk management, reaction time, resilience with the performance of organization and investigates in detail how a better strategy of supply chain risk management can lead to better performances and firms becoming resilient to disruptions and risks. This study is based on the automobile sector of Pakistan and the data was recorded from all the leading automobile industries of Pakistan. The research follows a quantitative model. 100 questionnaires were filled out by people employed in automotive firms and the data was analyzed using SPSS. Correlation analyses were performed to see how performance and supply chain risk management along with other variables – resilience and reactive supply chain, were related to each other. Furthermore, regression test was applied to understand the impact of meeting a structured supply chain risk management on firm’s performance and the results reveal that supply chain risk management does take a significant influence on the performance of a firm. Future work can be done in this same area by exploring more industries and firms, taking a bigger sample size and exploring more categories of risks that influence the firms’ operations in their own ways.