Risk Management - Approaches for a cost-efficient Supply Chain

Many companies are confronted with increasing competitive pressure, which is due to increasing globalization, amongst other things. Companies often respond by diversifying their networks by using different global locations for production and warehousing, therefore benefiting from various location factors or by focusing increasingly on their core competencies and shifting activities to their value adding partners.

The strategic and logistical issues within the scope of supply chain design are very diverse, comprise a long time horizon (up to ten years) and have a decisive influence on the company value. Therefore, it is essential to evaluate the economic efficiency and risks of different design alternatives already in the planning phase. Risks to be considered in the context of supply chain design are for example:

  • Trend in demand
  • Amount and trend of wage and transport costs
  • Supplier failures
  • Amount and trend of tax load or tariff rates
  • Political stability

It is necessary to consider dynamic risk factors when designing networks in order to prepare an adequate decision-making basis for companies.

We offer our customers the following services:

  • Systematic identification, classification and qualitative assessment of risks along the global supply chain
  • Quantitative evaluation of different planning alternatives by using simulation with regard to robustness and profitability
  • Development of roadmaps to implement the best planning alternatives