Establish risk management processes in procurement and supply chain

From port closures, to Corona, to the crisis in the semiconductor market: Structured risk management cannot prevent crises, but it can provide well thought-out solutions. Through transparency in the supply chain and ready-made emergency plans, companies remain capable of acting.

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Flexible supply chain and long-term security of supply

Risk management has long been a very abstract concept. But recent examples in the context of the Corona virus pandemic have shown how quickly global and widely ramified supply chains can get out of kilter. New requirements, such as those imposed by the Supply Chain Act, further increase uncertainty.

Good risk management helps to identify risks at an early stage and to counteract them with alternative plans. At the same time, it is hardly possible to avoid risks completely because they are part and parcel of entrepreneurial activity.

It means proactively identifying risks and reacting quickly. To do this, companies need an early warning system that includes all levels of their own supply chain. We support you in professionalising the risk management process in your company and implementing effective measures.

/ Risk Management Process

Risk Identification

Identification of all potential events that might not run as planned and have a significant impact on pricing, supply reliability or quality.

Risk Assessment

Assessment of the probability of events occurring and evaluation of their potential impact on the company’s performance. Tests run for emergency situations.

Risk Monitoring

Monitoring all risks and taking appropriate action against any impending deviation from targeted objectives. Setting up a risk control tower in order to be able to act quickly.

Risk Management

Implementation of strategies to make risks manageable: Risk prevention, risk taking, risk spreading, risk transfer.

Our service modules for optimising risk management in procurement

In many companies, the potential of active and strategic risk management has not yet been sufficiently implemented. We help you identify and implement professional risk management.

After a performance check, we develop the necessary processes and procedures together with those responsible from your company. This includes long-term preventive measures and the implementation of a modern reporting system for proactive risk management. In addition, we can also support you in taking short-term measures to minimise risks.

 

Icon - INVERTO service modules for optimizing risk management in procurement

A holistic risk management process must be approached across departments and repeated on a regular basis. In this way, risks can be identified at an early stage and corrected more quickly in the event of an emergency.

Philipp Mall, Managing Director, INVERTO – a BCG Company

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How do we proceed in risk management?

We analyse the current contribution of your procurement function to minimising risks. Based on the results, we derive concrete measures to increase performance in order to position your procurement as a strong partner within your overall organisation. The risk management performance check also forms the basis for the strategic development and implementation of effective optimisation programmes in risk management.

We identify weak points in your supply chain by creating transparency about your inventory suppliers and providing you with tools to identify insolvency risks of your suppliers at an early stage. In doing so, we do not rely exclusively on self-reporting but include various data sources in the analysis. Based on the data collected, we estimate the insolvency risk for each individual supplier and classify them into risk levels.

Based on the Supplier Health Check, we design and implement an individually tailored Supplier Risk Management System for you so that you can minimise default risks in the future. The system ensures regular supplier assessments and has early detection mechanisms. In addition, we define concrete action plans for each risk level.

We analyse which commodity groups in your company are particularly susceptible to risk and in which areas failures should be avoided at all costs. Based on this, we then prioritise and create procurement strategies for the individual commodity groups with which you can keep supply risks to a minimum. Together with you, we then identify the relevant procurement markets and suppliers and conduct tenders and negotiations. As a result, you have a restructured supplier base and sustainably optimised procurement.

No matter how mature your risk management already is, unforeseen events can still hit you again and again. We support you in acute risk situations with our many years of experience and overview of the supplier markets. For example, we can help you find alternative suppliers at short notice or cushion price risks. We are also happy to support you with powerful packages of measures in the event of supplier insolvency.

As a best-in-class solution, we implement a risk control tower that bundles and visualises all relevant key figures and information. We support you in the conception and in the cross-functional connection of all relevant departments as well as the management so that all parties involved have up-to-date information at their disposal at all times.

We train your procurement staff with individual training sessions in which specific company solutions and measures are taught in addition to best practice approaches. This enables you to sustainably establish the identification and preventive defence against risks in your company.

 

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Our risk management experts

Stefan Benett

Managing Director

contact@inverto.com Contact

Philipp Mall

Managing Director

contact@inverto.com Contact