At the 49th Symposium Purchasing and Logistics in Berlin, riskmethods and Dr. Hugo Eckseler, former CPO of Deutsche Post DHL, will launch their new study „The ROI of Supply Chain Risk Management“.
In the following summary, we would already like to provide you a few insights what the study will show:
Determining the return on investment represents an important aspect when deciding on a professional, automated and software-supported supply chain risk management (SCRM) solution. The study has detailed information on how
provide the source for individual potentials that can be evaluated in monetary terms, and offer a tool for individual determination of ROI as a no-charge download.
Results: For a typical medium-sized manufacturing company with revenue of 200 million USD, the actual savings through process efficiency alone quickly amount to considerably more than 200,000 USD per annum. In particular, these hard-to-calculate savings help to justify the investment decision, and ensure budget neutrality as early as the first year of acquisition.
A significant benefit of SCRM is generated by the immense potentials through risk prevention measures: losses of up to 7.5% of revenue (approx. 15 million USD in our sample company) can be avoided by means of risk prevention, or can at least be considerably reduced in a crisis situation.
Values such as these assist in deciding the success of an entire fiscal year, as well as the existence of a company. Companies derive additional financial room to maneuver and released personnel capacity to be able to increase ROI through risk prevention measures, in addition to acquisition of methods, tools and know-how.
Success factors: Successful companies with professional SCRM methodologies, such as the world’s largest automobile component supplier BOSCH, the leading technology group Siemens, or the most profitable European telecommunications group Swisscom agree that they have placed a sharp focus on common selected criteria from a process, organizational and tools perspective. This includes:
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