The COVID-19 pandemic, trade wars, and natural disasters have highlighted the vulnerabilities in our supply chains. While we may not be able to control the causes of these risks, we are not powerless against them. Supply Chain Innovations assists clients in preparing intelligently for the consequences of these risks. Not every investment in risk management is economically viable, and we help our clients identify where their supply chain is most vulnerable and what measures to take.
Risk Assessment and Prioritization
We model the supply chain to determine which suppliers and components are most critical to the company’s success. Experience shows that the most critical elements are often not the expensive parts or well-known problematic suppliers, but those that were previously unnoticed. With this insight, Purchasing and Supply Chain Management (SCM) can develop targeted solutions for the most critical elements of the supply chain.
Risk Mitigation
There are several ways to mitigate the consequences of risk, such as increasing safety stock, sourcing from alternative suppliers, or relocating production. Each approach varies in effectiveness and in cost. We help our clients choose the most economical measures without overdoing it – because “too much is too much” applies to risk mitigation as well. We also consider the client’s individual risk tolerance.
The result is a supply chain that operates efficiently – not just in good times.
Business Continuity Management
Even with thorough risk preparation, natural disasters and other risk events will occur. Companies must be able to respond quickly. We offer our clients the option to keep their supply chain risk model up to date beyond the project. If a risk event occurs, we can inform management within a few days:
- Where the company will be affected
- The severity of the impact
- Available alternatives
This enables our clients to respond to risk events faster than their competitors, providing a decisive strategic advantage.