QAD’s Terry Onica says that with the new IATF 16949 automotive quality standard, supplier leadership must demonstrate a stronger commitment to risk-based thinking “and show that they are taking actions proportionate to the potential risk.” In an exclusive video interview at AIAG’s 2016 Supply Chain Summit, Onica notes: “When I go out and look at suppliers’ contingency plans, I’m not seeing that today.”
AIAG’s Supply Chain Summit provides an annual overview of the industry trends as well as updates on current AIAG supply chain projects and initiatives.
Onica, QAD’s automotive vertical director and a long-time AIAG volunteer, spoke at the 2016 Supply Chain Summit on “Insight into Automotive Risk Assessment Requirements,” in which she addressed new automotive industry requirements for risk-based thinking; management, identification, and assessment in MMOG/LE v4; and the new IATF 16949. The session provided an overview of the steps needed by supplier organizations to be compliant.
During the video interview, Onica called on suppliers to take two actions: (1) Look a sub-supplier risk more diligently and (2) consider whether their contingency plans are too high-level. “You need to know what happens after you’ve contained the issue,” she points out.
Onica says that AIAG is helping the entire supply chain address risk factors collectively. “We need to know who all the supply chain partners are,” she says. “Are they capable? Is there risk there? What should we be addressing in our risk plans?”
View highlights from the video interview with AIAG’s e-News editor Carla Kalogeridis and find out why Onica believes that supply chain risk is “just at the top of the bubbling stage right now.”