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Managing Supply Chain Risk in Industrial Manufacturing

You want to build more resilient supply chains for disruption-free production. We do our part.

Long lead times, disruption, natural disasters, and geopolitics are squeezing profits in industrial manufacturing. And as a result of the COVID-19 pandemic, two of three manufacturing CEOs say they need to make their complex supply chains more resilient. But how? Risk management is a key component.

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Top Three Challenges for IM Supply Chains

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Challenge #1: Make supply chains more resilient

Margins are under pressure. Even disruptions shorter than 30 days stress earnings

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Challenge #2: Complex supply chains

Manufacturers are striving to uncover sub-tier vulnerabilities

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Challenge #3: Geopolitical risk

Trade conflicts have 87% of CEOs “extremely” concerned

How Our Customers Master Supply Chain Risk

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The riskmethods Solution informed us about a fire at a supplier location while it was still being extinguished. This real-time information gave us at least a two-day head start in determining the impact to our business. So we were the first ones to influence the supplier’s emergency plan and to secure supply.
James Klotz, Senior Vice President of Global Sourcing, Douglas Dynamics

Why Manage Risk with The riskmethods SolutionTM?

Use a Total View of Risk to Overcome Your Supply Chain Challenges
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Be risk aware

Make better business decisions. With our easy-to-use solution, you always take supply chain risk into account

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React faster

Boost efficiency. Cut response time by digitizing and automating supply chain risk management

be-proactive

Be proactive

Increase resilience. Stay ahead of supply chain threats with advanced tools that help you avert damage

Challenge #1: Make Supply Chains More Resilient

Margins are under pressure. Even a disruption lasting fewer than 30 days could jeopardize five percent of margins 

Challenges: In the coming years, three of the top four threats to manufacturers' growth are supply-chain related. Such risks place supply chain resilience front and center in the minds of CEOs.

With The riskmethods Solution, you can:

  • Stay informed about irregularities such as decreasing financial health, business disruptions, or compliance violations at your (sub)suppliers, vendors, contractors, and customers.
  • Identify negative trends and use mitigation tools to take action before things get worse.
  • Protect your margins. The riskmethods Solution helps you ensure business continuity and on-time delivery in your supply network. This contributes to customer satisfaction.

Challenge #2: Complex Supply Chains

Jolted by supply disruptions, tier-1 manufacturers are working hard to identify vulnerabilities further down the supply chain

Challenges: It is generally difficult for manufacturers to determine locations of subcontractors’ factories and the origin of (raw) materials. Pressure for near-sourcing and onshoring is growing. Additionally, the IM supply chain tends to have long lead times, as well as long reaction times to changing market needs, or to events.

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With The riskmethods Solution, you understand the impact of each of your suppliers on your business. So you can proactively remove vulnerabilities:

  • Visualize on a world map where your suppliers, contractors, vendors, or customers operate. Detect and remove criticalities such as bottlenecks, congested supply paths, or site clusters. You can make sure you comply to regulations that govern where material may be sourced.
  • Get comprehensive risk profiles for all your business partners on their financial health, compliance, cybersecurity, geopolitical risk, natural hazard risk, and other risk events.
  • React faster by having ready-to-use plans to mitigate risk. Set the right priorities and streamline remediation actions across your organization, as well as with suppliers and third parties.

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Challenge #3: Geopolitical Risk
 

In a recent PWC survey, 87% of CEOs say they are “extremely” concerned about trade conflicts, particularly the US-China dispute

Challenges: Global supply chains are vulnerable to (protectionist) trade restrictions, political tensions, and other geopolitical influences. For example, in the United States, tariffs and levies placed on more than US$200bn worth of Chinese steel and aluminum goods have increased IM materials costs and squeezed margins.

With The riskmethods Solution, you can:

  • Stay up to date on country-related risk or other geopolitical threats by using continuous supply chain monitoring.
  • Visualize the regions from where you import material.
  • Understand which of your suppliers are impacted by, or prone to, geopolitical risk. Get notified immediately if one of your suppliers is mentioned in connection with tariff increases, or with any consequences of civil unrest.

Customers all over the world rely on our solution

Have a question about managing risk in the industrial manufacturing supply chain?

Ask away – no question is too hard for our SCRM experts! Fill out the form and we will be in touch to schedule a time to talk.
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