Abstract
Purpose – The main purpose of this paper is to address the impact of product design changes on
supply chain risk, and to identify the supply chain risk dimensions in the Chinese special-purpose
vehicle (SPV) industry in the context of product design change.
Design/methodology/approach – Case study methodology is adopted to describe the current
situation of supply chain risk management in the Chinese SPV industry. Data are mainly collected from
in-depth semi-structured interviews, and a cause-effect diagram is used to identify and summarize the
internal and external risk dimensions of supply chain risk.
Findings – This paper identifies both the internal and external supply chain risk from the perspective
of the focal manufacturer in the SPV supply chain. At the level of the external supply chain,
customer-required design change normally leads to risk in supply, delivery, and policy. Internally for the
manufacturer, the risk dimensions are R&D, production, planning, information, and organization. All of
these risk dimensions have their respective causes.
Research limitations/implications – The risk identification of product design change in this
paper is only meant to lay a foundation; further case studies should focus on the best practices and
approaches of risk management and extend them to other industries.
Practical implications – The current identification of the risk dimensions and their respective
causes will help both practitioners and researchers to better understand supply chain risk in the
context of product design change. The identified risk dimensions and cause-effect diagram provide
practitioners with a risk framework and useful tools to recognize and identify their potential supply
chain risks.
Originality/value – This paper shows the “big picture” of supply chain risk from product design
changes in the Chinese SPV industry.
Keywords Product design, Risk management, Supply chain management, China, Automotive industry
Paper type Case study
