In an effort to strengthen the automotive supply chain, the Automotive Industry Action Group will offer crisis management and business recovery training.

The emergency response training is the first of its kind in the automotive industry, says Andrew J. Cummins, executive director and CEO of AIAG. It became available on Aug. 3.

“As recent crises suggest, the supply chain is vulnerable,” Cummins says. “A domino effect in the supply chain may be created when disruptions occur at any single point.”

The crisis management process was developed by DaimlerChrysler Corp., Ford Motor Co. and General Motors Corp. in cooperation with suppliers to help the industry save millions of dollars a year. The group urges suppliers to develop plans for crisis management, citing that many organizations now require suppliers to have them.

A recent study by Michigan State University, “Effective Practices for Business Continuity Planning in Purchasing and Supply Management,” found that companies are courting disaster if their business continuity plans fail to ensure supply chain continuity. Furthermore, the findings suggest that supply chains are increasingly fragile.

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