Chrysler’s Plastech Woes: A Sign of Inadequate Supply Chain Risk Management?


Better supply chain risk management could have prevented a shutdown of Chrysler factories this week caused by a dispute with Plastech Engineered Products, according to noted supply chain management consultant Bill Michels, CEO of ADR North America.

Chrysler shut down four assembly plants on Monday in the wake of its ongoing dispute with Plastech, a Dearborn, Mich.-based supplier of a range of parts used on most Chrysler vehicles.

The automaker had ended its contract with the financially troubled Plastech last week, and the supplier had filed for bankruptcy on Friday, prompting Chrysler to shutter the plants, saying that it was not receiving parts from Plastech. More plant closures were possible as “just-in-time” parts stopped showing up on the docks at Chrysler’s assembly plants.


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