PRESS & NEWS

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

Procure from around the world and manage risks

July 22, 2014


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 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 www.riskmethods.net

 

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