Increasingly, interim managers also have to play the role of risk manager in their company. Conflicts are inevitable. This is because risk managers must be prepared to bring unpleasant findings to the decision-making bodies and represent them there. This requires systematic approaches - methods of analyzing risks and, ultimately, efficient and effective management.
DE BORD INTERNATIONAL INTERIM helps you to minimize your risks in the supply chain with specialized interim managers.
In recent years, changes in global procurement and sales markets and cost pressure on supply chain management have meant that companies have often had to accept losses through no fault of their own. Unexpected events, supplier failures or major fluctuations in demand can unsettle the best planners.
Many companies have therefore realized that systematic management of such supply chain disruptions can bring long-term benefits. With professional risk management, companies can improve business results, stabilize supply chains, optimize quality and thereby strengthen their overall competitiveness.
Numerous studies show that procurement is challenged. Successful companies recognize the contribution that risk management in procurement makes to increasing competitiveness. The importance of risk management has even increased significantly in recent years. And it's no wonder - because unrecognized risks can quickly lead to negative consequences and falling sales, both in the consumer goods industry and in the capital goods sector or for suppliers. This calls for new ERP solutions, advanced technologies and real-time data management.
Identifying risks
By shifting value creation processes to suppliers, risks are shifted from the company itself to the supply chain. This does not always have to be positive. Often, corporate supply chain risk management does not keep pace with this development.
One reason for this is insufficient knowledge of the serious consequences. When identifying risks, possible scenarios are listed, evaluated and then prioritized. The focus is on the main risks for the respective company.
It is therefore clear that the focus is on the top risks in order to cover them with the greatest probability. Supplier defaults, quality risks and compliance are among the most common types of risk.
Evaluate risks
Once the main risks have been identified, more detailed information must be obtained, consolidated and analyzed both qualitatively and quantitatively. This processing creates a good overview that provides a better picture of the risk landscape.
Different types of risk play an important role here, which we describe according to their probability of occurrence and their potential impact and level of damage. This creates a risk portfolio from which individual scenarios can be derived.
Managing risks
If we know the possible scenarios, we know what to do: for example, regularly evaluate suppliers, conclude long-term framework agreements, create safety stocks, analyze sourcing countries or rely on several suppliers (dual sourcing strategy).
In this way, plans or scenarios for emergencies can be drawn up and procurement processes can be relocated to other countries in good time. By regularly monitoring the risks according to the scenarios developed, supply is ensured. This can greatly reduce supplier failures, stabilize prices and improve product and service quality.
Scope is underestimated
Risk management in purchasing has many facets, but it certainly requires specialist knowledge in qualitative and quantitative simulation, rating and evaluation procedures. Many purchasing managers underestimate the importance of this expertise. However, due to increasing digitalization and the resulting growing complexity of supply and value chains, those buyers who have mastered the risk management tool will be successful in the future.
We help you to find suitable interim managers with whom you can minimize your risks in the supply chain.
