Global law firm Hogan Lovells is launching an interactive online tool to provide companies in the automotive sector with tailored guidance on how best to manage the risk of supply chain disruption.
Issues such as recall cost indemnification, termination, warranty disputes, redesign of components or a single source supplier with a JIS-integration using their leverage by threatening a supply stop require significant expertise to implement without a ripple effect in the complex supply chain. Also with external forces such as steel price volatility and natural disasters often threaten the long and complex supply chains relied upon by global businesses, the Supply Chain Disruption Tool gives tailored guidance across different industry sectors and legal jurisdictions on how best to manage these risks.
Already available for the oil & gas industry, the automotive tool is the second in the series, which will soon also include tools specific to the mining, consumer, transportation, TMT, and life sciences sectors. The tool asks users to answer a small number of simple questions, and then produces a downloadable, bespoke report.
Detlef Hass, partner at Hogan Lovells (pictured above), said: “Our many automotive clients tell us they are always on alert for supply chain disruption resulting from events such as natural disasters, geopolitical upheaval, and indeed issues within the business relationship within a specific supplier. If not managed carefully the business disruption will often end in a dispute and, even worse, can have a devastating impact on a company’s bottom line and future prospects.
“We have designed this tool specifically for use by automotive companies to help them anticipate and mitigate the risks. While in many cases the effects of supply chain disruption cannot be avoided altogether, we hope this tool will be a useful starting point for basic guidance.”