ABSTRACT

Contents 16.1 Introduction ........................................................................................268 16.2 Supply Chain Disruption .................................................................... 269 16.3 Sourcing Strategy ................................................................................ 270 16.4 Automotive Industry in Iran ............................................................... 273

16.4.1 Supply Chain Management of ABC Company ........................ 273 16.4.2 Risks Associated with Sourcing in ABC Company .................. 275

16.4.2.1 Organization-Driven Risks ........................................ 276 16.4.2.2 Environment-Driven Risks ........................................277 16.4.2.3 Competitor-Driven Risks ........................................... 278 16.4.2.4 Customer-Driven Risks ............................................. 278 16.4.2.5 Supplier-Driven Risks ................................................ 278

16.4.3 Alternating Sourcing Strategy .................................................. 279 16.5 Conclusion .......................................................................................... 282 References .................................................................................................... 283

16.1 Introduction One important area of research in the eld of supply chain management is supply chain risk/uncertainty management, which was given more attention over the last 10 years due to earthquakes, economic crises, SARS, strikes, terrorist attacks, etc. A disrupted supply chain may encounter serious problems in meeting customer demands, it also su‚ers from a signicant drop in supply chain’s short-term (Norrman and Jansson, 2004) and long-term performance (Hendricks and Singhal, 2005a,b). An event for a single member of a supply chain can easily in«uence several members of the chain, causing consequences far beyond the immediate e‚ect at a certain location (Sinha et al., 2004, Bogataj and Bogataj, 2007). Supply chain risk management processes aim to reduce the impacts or likelihood of an event by implementing actions including “avoid, reduce, transfer, share or even take the risk” (Norrman and Lindorth, 2005).