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The Complexities of Honda's Supply Chain & Associated Risks: Understanding Suppliers & Customers, Industry Differentiators, and Market Locations

Research output: Contribution to journalArticlepeer-review

Abstract

This paper investigates Honda Motor Co of Japan and
over 50+ supply chain network relationships between suppliers
and customers. These companies represent the industry
through trading, specialty retail, road & rail, professional
services, machinery, food products, electronic equipment,
diversified financial, automobiles, and auto components. Using
data from Bloomberg terminals, Mergent Online, Hoover
Academics, and IBIS World, our goal was to understand
Honda’s supply chain risks and the capabilities needed to
overcome them, in conjunction with their suppliers, customers'
locations, and industry differentiators. We aimed to understand
how they performed through the many disruptions of the
Covid-19 pandemic. Results showed that the main risks to Honda Motor Co are in three categories: Organizational (credit, agency), Industry (product market, input market), and Environmental (macroeconomic). The core capabilities that Honda Motor Co used to overcome these risks are Flexibility (financial strength), Velocity (efficiency, anticipation, security), and Collaboration (market position). As a market leader, Honda has demonstrated resilience and readiness to recover from these disruptions.
Original languageAmerican English
Article number4
Pages (from-to)528-537
Number of pages15
JournalOperations and Supply Chain Management
Volume15
Issue number4
StatePublished - 2022

Keywords

  • automotive industry, capabilities, disruptions, risks, supply chain resiliency

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