Abstract

In response to the changing needs of enterprises and changes in global automobile market supply chain, China has become the most promising automobile market and components supplier in the world. Taiwanese automobile manufacturers aspire to achieve a more rapid, effective, and accurate procurement strategy to expand sourcing from suppliers in China. However, considerable uncertainty and risk are involved in purchasing goods from supply chains in China. Improved understanding and analysis can safeguard the procurement of security and efficiency. This research examines the key risk factors involved in purchasing goods from supply chains in China by investigating an individual case of purchasing strategy adjustment. How do enterprises respond and manage these risk factors? The concept framework of this research was created through a literature review and expert interviews. The Delphi method was employed to achieve consensus and identify a study framework comprising 4 dimensions and 15 criteria. Finally, the Decision-Making Trial and Evaluation Laboratory-based Analytic Network Process method was used to weight and rank the dimensions and criteria. The key dimensions were “supply risk” and “environmental risk” and the key criteria were “quality risk” and “delivery risk.” The actual supplier risk assessment of three cases revealed that procurement from Chinese suppliers entails risks in a dynamic situation. Therefore, individual supplier risks should be analyzed to provide coping strategies and to achieve an effective early risk warning for suppliers.  

Keywords

supply chain riskDecision Making Trial and Evaluation Laboratory (DEMATEL)Analytic Network Process (ANP)