In the wake of life-threatening defects that led to massive recalls in the automotive industry, Congress passed the TREAD Act, requiring automakers to alert the National Highway Traffic Safety Administration of any data related to incidents with their products. Not doing so could result in criminal prosecution, which only further adds to the need for an accurate, integrated data collecting and reporting system that automakers can rely on to ensure they are not only acting in accordance with the law, but are protecting consumer lives.
Adding to legal risk, auto manufacturers and suppliers must also deal with risk on just about every other level. From dealing with subcontractors to working around natural disasters, health crises and political and social upheaval, the global supply chain faces no shortage of threats, many of which are beyond the control of the automotive industry – all the more need for auto supply chain risk management.
Enter the resounding call for comprehensive, integrated IT systems that contribute to collecting Big Data as it relates to the global supply chain and how manufacturers, suppliers and subcontractors interact and do business within. These systems not only collect and report in the name of mitigating risk, but also create a clear and visible line of accountability all the way down the supply chain, should the long arm of the law extend its reach and require some answers.
The need for such a system has never been more apparent, as a recent study from Forrester found that only 40% of purchasing and supply chain managers currently have a solution in place for managing risk and performance, and only 8% currently use an integrated system. A new report from MFG.com takes a closer look at specific risks and recent events that only further cement the need for greater, integrated technology solutions.
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