New Delhi, March 12 -- It is difficult to prepare morning tea if the milk vendor is late. It is difficult to get to work if the driver is absent. This intangible machinery of trust and cooperation that gets the world moving is called the supply chain.

For original equipment manufacturers (OEM) in the automobile industry, a supply chain manager evaluates requests for proposal and completing the signing of contracts. The law enforcement agencies implement these contracts.

There is a huge cost associated with a contract breach. So, ultimately it is the trust and cooperation between contracting parties that run the supply chain machinery of a large auto OEM. Poor planning and operational failures can lead to internal supply chain risks.

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