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Supply Chain Risk Management

We protect your Supply Chain.

riskmethods enables you to monitor all kinds of risks, minimize the impact and proactively take action to mitigate risk.

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  • Transparency Creates Security


    Transparency Creates Security

    riskmethods: Supply Risk Network extended by risk monitoring of logistics hubs

    riskmethods / Munich, 05 August 2014 – The SaaS solution Supply Risk Network from riskmethods, the technological market leader for risk assessment of global supply chains, is being extended by risk monitoring of logistics hubs, such as ports, airports and transshipping terminals. This enables customers to receive important risk information on regional, geopolitical, meteorological, economic and other conditions related to the location of these logistics hubs, in addition to supplier and location risks. In this manner, direct impact on production and the net product as a result of risks that have occurred can be identified, and risk monitoring along the global supply chain ensured.

    An efficient flow of goods is the essence of a company’s production and net product. Your risk monitoring ensures not only your own production but also jobs and the ability to supply, as well as the image and sales of your organization.

    riskmethods’ customers are already able to monitor risks related to their locations and countries, in addition to supplier risks. This risk monitoring can now easily be extended to include the most important logistics hubs in the world, such as ports, airports, nodes and transshipping terminals, which account for around 90% of global freight traffic. The Munich-based company has identified 52 of these strategic hubs in this regard. After all, a strike at the Rotterdam port or Hong Kong airport, political turmoil that can affect routes such as the Suez Canal or the Bosporus Strait, or an earthquake that destroys road networks or bridges not only potentially impacts on the supply situation of organizations affected, but can also result in a total production shutdown.

    360°-degree data collection and analysis of these key logistics hubs and choke point regions consequently allow for even faster and more accurate determination of risk factors, which in turn means that risks along the entire supply chain are recognized at an early stage and countermeasures can be initiated.

    “Natural disasters, social unrest and a lack of resources have shown us again and again in the last years how sensitive supply chains in a globalized world are,” says Rolf Zimmer, Managing Director at riskmethods.

    No supply chain can be 100% secure; for corporate success, however, it is critical to be informed about all types of risk events along the entire supply chain - both in terms of prevention and timing - and to be able to act accordingly. “By providing these key logistics hubs and choke point regions in the Supply Risk Network at no charge, riskmethods is once again helping its customers, in an easy and uncomplicated way, to recognize supply chain risks at an early stage, and is thereby contributing significantly to safeguarding the company’s success,” continues Zimmer.

    About riskmethods:
    riskmethods provides companies with a comprehensive supply chain risk management solution for proactive monitoring and assessment of risks in the supply chain. An early warning system for potential risk ensures that proactive steps can be taken to avoid supply interruption, enforce compliance and protect the corporate image. The SaaS solution "Social Supply Risk Network", which was developed in Germany, combines state-of-the-art technology with cutting-edge provision of risk intelligence, to establish a leading standard in supply chain risk management.

  • Exclusive collaboration by Marsh and riskmethods


    Improved insurance cover through greater transparency in supply network risks

    Exclusive collaboration by Marsh and riskmethods

    Frankfurt/Munich, June 16, 2014 – The after-effects of serious catastrophes such as Fukushima in Japan or the floods in Thailand in 2011 can still be felt by many companies to this day: The considerable number of losses incurred by suppliers and customers at the time meant that many insurers curtailed their limits significantly in this regard or canceled them altogether. In many cases, companies are now only covered where maximum risk transparency is provided. Industrial insurance broker Marsh and riskmethods, technological leader in risk analysis of global supply chains, are now offering companies in all sectors an option for obtaining qualified risk information on their supplier networks by means of the cloud-based Supply Risk Network solution. This allows for an optimized placement process, better prices and enhanced capacity. Supply Risk Network was developed by riskmethods and is available to Marsh – and, as such, its customers – as exclusive collaboration partner, for use by its risk advisors and insurance brokers.

    The Supply Risk Network collects and searches for global risk information via a large number of verified data sources as well as via riskmethods Risk Research, which monitors more than 300,000 online sources. Risk information generated for suppliers and their sites and countries is available around the clock in near real time. This integrated approach currently captures approx. 80 risk indicators: from supply interruption due to natural disasters, pandemics, political unrest right up to sabotage, and problems related to finances or quality on the part of suppliers. Gaining time, both for preparing and responding to interruptions in supplier networks can be of significant advantage in terms of the outcome. Especially when it comes to setting up emergency operations by way of organizing possible alternative suppliers, for example, or by redirecting material flows.

    "Greater transparency of the supplier networks can improve underwriting coverage terms and conditions in terms of risk placement in the insurance market," says Dr. Georg Bräuchle, Managing Director at Marsh GmbH, and who is responsible for placement. "In many cases, this is the only option for hedging risks, as insurance companies can no longer simply refuse assumption of risks on the basis of missing risk transparency and unpredictable accumulation risks. "But irrespective of whether insurance cover is available to the required extent or at an appropriate price, improved transparency means that companies are more flexible when it comes to decision-making. "If you are more aware of your risk, you are probably more likely to bear it yourself because it is lower than previously assumed. Or, in the reverse case, this may result in decisions concerning placement in the capital market in the form of alternative risk transfer, or in reengineering of a product or new procurement strategies," adds Bräuchle.

    In the event of failure to deliver by a supplier, for example, due to a natural catastrophe or where a delivery is kept back at a transshipment point like a port or airport as a result of a strike, the customer receives notification via his mobile phone, computer or tablet. "The Supply Risk Network monitors and analyses not only direct suppliers, but also their subcontractors in order to map risk dependencies across the entire supply chain," says Rolf Zimmer, Managing Director at riskmethods. "The early-warning system informs companies of the risks and also of the affected suppliers and regions. In this way, interruptions that have occurred can be immediately localized and identified and suitable measures implemented at an early stage."

    Use of the solution also helps recognize and evaluate risks better in advance. "The geo-coordinates that can be derived from the addresses are a good indicator for a large number of potential risks, such as political or economic conditions, and for exposure to natural disasters," explains Markus Groth, Head of Marsh Risk Consulting and expert in supply network risks. "Together with our customers, we develop scenarios for a breakdown in business processes and resources that are essential for manufacturing strategically important products. In this regard, we solve problems like: What is the loss potential associated with uncertainty in terms of a certain supplier? What risk control options are available? What recovery costs would be incurred in the case of loss of the supplier?"

    About Marsh:
    Marsh is one of the world’s leading industrial insurance brokers and risk advisors. We develop innovative sector-specific solutions for our customers and in so doing help them manage their risks successfully. We have a worldwide network of around 27,000 colleagues who provide advice on implementing risk management and insurance solutions to customers in more than 100 countries. Marsh GmbH in Germany has a staff contingent of around 600 employees at its sites in Berlin, Detmold, Düsseldorf, Frankfurt, Hamburg, Leipzig, Munich and Stuttgart. Marsh is a wholly-owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global service provider that offers customers advice and solutions in the areas of risk management, corporate strategy and personnel management. Marsh & McLennan Companies employs more than 54,000 people worldwide and has annual sales of around 12 billion US Dollar. Marsh & McLennan Companies also owns Guy Carpenter, a globally leading reinsurance broker, Mercer, a leading international supplier of consulting, outsourcing and investment services, and Oliver Wyman, one of the world’s leading management consultancies. www.marsh.com

  • BELIMO Automation AG relies on riskmethods


    BELIMO Automation AG relies on Social Supply Risk Network

    riskmethods’ Social Supply Risk Network monitors global supplier relationships for BELIMO Automation AG

    riskmethods / Munich, November 21, 2013 – When it comes to monitoring its global supply chains, Swiss-based BELIMO Automation AG from Hinwil, a global leader for the provision of innovative electrical drive solutions in the heating, ventilation and air-conditioning sector, relies on the “Social Supply Risk Network” from riskmethods, the technological market leader for risk assessment of worldwide supply chains. Besides the ease of use and fast implementation of riskmethods’ SaaS solution, the high quality and precision, as well as the comprehensive approach in respect of the data provided were convincing factors. BELIMO Automation AG is integrating the Social Supply Risk Network into its global sourcing processes.

    Supply risks do not only include business disruptions or insolvencies, but also local risks such as strikes or force majeure. Equally, country risks and political unrest are of great significance for supply chains as they impact directly on procurement paths. “The Social Supply Risk Network from riskmethods ensures extensive transparency along global supply chains, thanks to its integrated, cloud-based data approach and its Share function,” explains Heiko Schwarz, Director of riskmethods. Thanks to the Supply Chain Risk Management (SCRM) solution from riskmethods, BELIMO’s procurement staff has access to all risk-relevant information along the supply chain. “In this way, the purchasers of BELIMO Automation AG always have a clear overview of the same, up-to-date information across the company from all risk areas. If the alarm mechanism is activated, the purchasers are automatically informed in the event of tolerance transgressions,” adds Schwarz.

    Christian Burgener, Head of Global Sourcing at BELIMO, was won over by the simple and quick activation of the risk radar: “Besides the comprehensive yet extremely user-friendly and very easy-to-learn range of functions, as well as flexibility, the pivotal factor in deciding for this solution was the exceptionally fast implementation – within one day. Monitoring risks along global delivery paths is an extremely, and in fact indispensable topic for BELIMO, on account of the high proportion of value added by our providers,” confirms Burgener. The increased transparency and improved response capacity in particular are extremely important for the Swiss company, “because we don’t only want to be reactive when it comes to risks, we’d rather take a proactive stance to risk exposure in our supply chains,” continues Burgener.

    Procurement experts wish to be optimally informed about their supply relationships, and drive their risk-minimizing activities forward accordingly. “Only in this way are they able to keep up with short-term, changing situations in the global procurement market, and take even better decisions,” comments Peter Neumüller, Senior Procurement Engineer at BELIMO Automation on the introduction of Social Supply Risk Network. “The product provides our purchasers precisely with the information they require.”

    Two additional factors were decisive for the Swiss concern. First, the fast implementation of Social Supply Risk Network, which is based on prior integration of numerous risk information data sources. This means that the vast expenditures usually incurred for procuring risk information is avoided. And second, the reasonable “Pay-as-Use” price model enables a commercially risk-free entry into the use of the riskmethods solution. “We are extremely delighted with the order from BELIMO Automation AG, because it shows that our solution can score points in SMEs in particular, as the fast and resource-saving implementation within one day does not consume valuable personnel capacities,” says Schwarz. “Also, we’re proud that we were able to gain our first Swiss customer in BELIMO Automation AG.”

    About riskmethods:
    riskmethods provides companies with a comprehensive supply chain risk management solution for proactive monitoring and assessment of risks in the supply chain. An early warning system for potential risk ensures that proactive steps can be taken to avoid supply interruption, enforce compliance and protect the corporate image. The SaaS solution "Social Supply Risk Network", which was developed in Germany, combines state-of-the-art technology with cutting-edge provision of risk intelligence, to establish a leading standard in supply chain risk management.

  • Kardex: Procure from around the world and manage risks


    Procure from around the world and manage risks

    Kardex uses riskmethods’ Supply Risk Network for comprehensive supply chain risk management

    riskmethods / Munich, 17 July 2014 – Internationalization of its procurement activities means that Kardex, leading international manufacturer of automated storage and retrieval systems, is exposing itself to global supply chain risks. By using the “Supply Risk Network” from riskmethods, the technological market leader for risk assessment of worldwide supply chains, the wide range of risks and potential threats is monitored and their impact in a risk situation assessed. In this manner, Kardex safeguards its supply in the international procurement environment and maintains consistently high quality of its products and services in terms of its customers.

    Internationalization of procurement enables companies to realize competitive prices for products and materials. However, this global approach also harbors hidden risk potential that threatens guaranteed supply and can lead to bottlenecks within global supply networks.

    riskmethods’ Supply Risk Network allows Kardex to monitor its supply chains worldwide. “We aim to tap into new potential by internationalizing our procurement while at the same time cushioning associated risks. Use of the Supply Risk Network enables us to protect our new, global supply chains from risks of any kind,” says Jürgen Schuhmacher, Director of Strategic Procurement at Kardex, Germany. Kardex monitors its 200 key suppliers, their locations and countries, as well as important logistics hubs (such as the Suez Canal), all of which are displayed and monitored in the Supply Risk Network in a clear and interactive manner via a world map, and include a risk score.

    “Checking the creditworthiness of a supplier was perfectly sufficient in days gone by – today this is no longer enough,” continues Schuhmacher. Suppliers, locations and countries are also monitored and assessed around the clock in terms of stability, supply security, market and costs, as well as image and compliance: this means all relevant types of risks, such as natural disasters, compliance/CSR breaches, political risks or sanctions and other threats are taken into account.

    Thanks to the Supply Risk Network, Kardex first receives basic information on all latent risks for all suppliers, and production locations and countries. Based on this knowledge, accurate analyses can be generated and preventive measures implemented. Second, Kardex benefits from riskmethods’ early warning system. “In a risk situation, the buying agent at Kardex receives an alarm message via email or directly to his smartphone, allowing him to act immediately,” explains Jörg Thürwächter, Strategic Buying Agent at Kardex. “In this way, loss through supply disruptions or damage to image can be avoided.”

    Immediate commissioning of the Supply Risk Network was another convincing feature. “We were able to activate the SaaS solution from riskmethods within a day and instantly benefit from near real-time risk data,” confirms Schuhmacher. “Our Supply Risk Network is characterized by immediate operation without any outlay for installation, an implementation project or major resources,” adds Schwarz. Another reason for Kardex’s decision was that riskmethods is already working on the next modules for determining supplier criticality and impacts on events, as well as on preventive action management; this is in addition to the Risk Radar.

    About Kardex:
    Kardex Remstar develops, produces and maintains dynamic storage and retrieval systems. The company is a leading provider of storage lifts, carousel shelving systems, order picking software and Life Cycle Services. Customers from all industry sectors use solutions from Kardex Remstar to simplify their intralogistics processes and make them more transparent, and to demonstrably save space and process costs. Kardex Remstar’s customers come from all lines of business, such as the automotive, electronics, chemical/pharmaceuticals, trade, engineering and health sectors. The company has two production sites in Germany (Bellheim and Neuburg). The intralogistics provider has to date successfully implemented around 140,000 dynamic storage systems all over the world. With an extensive seller and distributor network, Kardex Remstar operates in more than 30 countries and employs approximately 1,200 staff worldwide. http://www.kardex-remstar.de

    About riskmethods:
    riskmethods provides companies with a comprehensive supply chain risk management solution for proactive monitoring and assessment of risks in the supply chain. An early warning system for potential risk ensures that proactive steps can be taken to avoid supply interruption, enforce compliance and protect the corporate image. The SaaS solution "Social Supply Risk Network", which was developed in Germany, combines state-of-the-art technology with cutting-edge provision of risk intelligence, to establish a leading standard in supply chain risk management.

References

Download Belimo Case Study

“With external added value of over 80%, functioning supply relationships are of great importance for Belimo.”

Christian Burgener
Head of Global Sourcing Division

Download Kardex Case Study

“We aim to tap into new potential by internationalizing our procurement. Using the Supply Risk Network enables us to protect our new, global supply chains from risks of any kind.”

Jürgen Schuhmacher
Director of Strategic Procurement

Read Spendmatters article

“riskmethods: The Cool Risk Management Solution Provider You Probably Haven’t Heard Of”

Thomas Kase
Principal Analyst