Supply Chain Risk Inspector - Tool-Based Risk Management

Why do deviations from the schedule or disturbances in supply chains occur and how can they be avoided? How can costs and efforts for exception handling and special transports be reduced? 

Every procedure in the supply chain is exposed to risks which can cause disturbances. These can go so far that business processes cannot be performed as planned anymore. The result can be higher efforts, additional costs and a decline in customer satisfaction. Suitable actions for risk reduction can only be made if the cause and consequences of risks are understood and evaluated in the right way. 

The Fraunhofer IML developed the industry-tested “Supply Chain Risk Inspector”, which is based on a systematical approach. The tool supports companies in managing their risks in a conscious and targeted way and regulates them proactively or reactively. It is the goal to design business processes efficiently and robust.

The operating principle of the Supply Chain Risk Inspector is based on an approach that was developed in cooperation with the Fraunhofer IPA and can be structured in four phases: 

• Phase 1: Risk identification

Identification of risky supply chains
Evaluation of individual supply chain parts with regard to resilience, strain and coordination effort

• Phase 2: Risk evaluation

Evaluation of identified risks with the aid of a modified failure mode and effects analysis (FMEA)
Aggregation of risk probability and risk consequences to a risk priority index

• Phase 3: Risk stabilization

Development of measures for risk stabilization
Evaluation of effects of different stabilization measures with the aid of the risk priority index

• Phase 4: Cost and benefit distribution

Identification of all supply chain partners that are needed for the risk stabilization
Allocation of all expenditures and beneficial effects to all involved supply chain partners

To avoid deviations from the target process, the Supply Chain Risk Inspector supports you in your business processes with the following tasks:

• Identification of risks in your own company, within the supply chain and in the environment
• Assessment of the identified risks
• Selection of appropriate measures for the conscious management of risks

The flexible tool is suitable for the application in large companies as well as in small and medium-sized companies and can be applied in all industries. With the application of this tool, costs and expenses can be reduced and customer satisfaction can be increased.

Supply Chain Risk Inspector