Impacts of Business Continuity Management (BCM) on Automobile Parts Makers Against Natural Disaster Events
Abednico Lopang Montshiwa and Akio Nagahira
Graduate School of Engineering, Tohoku University
661180 Aza Aoba-ku, Sendai, Miyagi 980-8579, Japan
Recently, automobile parts manufacturers have faced unprecedented natural disaster challenges in their operations. It is increasingly complicated to prepare for disruptions in this industry owing to both its elaborate and extensive supply chain network and the ever increasing number of natural disaster events around the world. We surveyed the impacts of business continuity management (BCM) on 92 automobile parts markers in disaster-prone regions (Asia and North America). The survey revealed that risk-conscious companies reported better business impact analysis (BIA) and supply chain cooperation status than did non-risk conscious companies. Of the companies that were satisfied with their BIA (59%), 40% stated that their business enterprises faced no risks at all. 56% of the 16% that were dissatisfied with their BIA status indicated that their business enterprises faced no risks at all. We also found that majority the of companies with weak supply chain network considered themselves to have no risks at all (58%), compared to 42% of the companies that had good supply chain network. The survey also found that 44% of respondents were satisfied with recovery time capability; similarly, the majority of respondents (54%) were confident that their BCM would yield competitive advantages.
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