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

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.

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