Author Archives: Mirko Woitzik, DHL Resilience 360



Lessons in Supplier Risk Management: How a Fire, Strike Lost the Auto Industry $500 Million

Nissan

With powerful hurricanes, earthquakes and wildfires threatening business operations and logistics, supply chain risk professionals across manufacturing industries usually have their hands full when it comes to mitigating disruptions. While the focus is usually on extreme weather, two operational disruptions at a supplier level in May and June revealed once again the full diversity of supply chain risks that can impact industrial production lines. In total, both events caused automotive and machinery supply chains more than $500 million in financial losses. These events are stark reminders of how a disruption at a single sub-tier supplier can ripple across manufacturing supply chains, impacting both upstream (sales) and downstream (production) operations.