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AIAG VIDEO INTERVIEW: Making Supply Chain Risk Management Part of Your Culture

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Greater awareness of supply chain risk is needed among manufacturing facilities at the supply chain level, says Terry Onica, director of automotive at QAD. “When I go out in the industry to do my work, I see that many plants are really not prepared for any type of disruption at their facility,” she says. 

During an exclusive on-camera interview at the annual AIAG Supply Chain Summit held June 20, 2017, in Livonia, Michigan, Onica shared a brief taste of her presentation at the summit.

Preparing for risk in a strategic way should be a crucial component of every company’s culture. “At the corporate level, they are looking at risk, but down in the manufacturing level and supply chain, there is not that sense of awareness or urgency. So there is this gap between the two,” Onica says. “Most companies’ risk strategies just sit at the corporate level and don’t filter through. It needs to become a culture.”

Onica says companies that are struggling with their risk plans can take steps right away to begin addressing it. She says they can start by looking at the IATF 16949 standards, the quality standards, and the MMOG/LE delivery standards. “I think those are a fantastic place to start. They offer a lot of advice as to what you should have and what you should be looking for in risk plans,” she says.

After the facility takes a look at those standards, Onica says they should take the data of their risk points to corporate and start comparing what each other are looking at. “I think that can really drive it from the bottom up. And the top can actually look at what’s really happening out there in our facilities and what can we do to support them better as well.”