Optimizing Diamond Structured Automobile Supply Chain Network Towards a Robust Business Continuity Management

• Main Author: Abednico Montshiwa
• Format: Article
• Language: English
• Published: Kharazmi University 2016-02-01
• Series: International Journal of Supply and Operations Management
• Subjects: business continuity plan; diamond supply chain; automobile supply chain network; supply chain cooperation; risk ranking
• Online Access: http://www.ijsom.com/article_2647_fb0ac43b742052ebe834e1058573d7a2.pdf
• ISSN: 2383-1359; 2383-2525

This paper presents an optimized diamond structured automobile supply chain network towards a robust Business Continuity Management model. The model is necessitated by the nature of the automobile supply chain. Companies in tier two are centralized and numerically limited and have to supply multiple tier one companies with goods and services. The challenge with this supply chain structure is the inherent risks in the supply chain. Once supply chain disruption takes place at tier 2 level, the whole supply chain network suffers huge loses. To address this challenge, the paper replaces Risk Analysis with Risk Ranking and it introduces Supply Chain Cooperation (SCC) to the traditional Business Continuity Plan (BCP) concept. The paper employed three statistical analysis techniques (correlation analysis, regression analysis and Smart PLS 3.0 calculations). In this study, correlation and regression analysis results on risk rankings, SCC and Business Impact Analysis were significant, ascertaining the value of the model. The multivariate data analysis calculations demonstrated that SCC has a positive total significant effect on risk rankings and BCM while BIA has strongest positive effects on all BCP factors. Finally, sensitivity analysis demonstrated that company size plays a role in BCM.