elero implements proactive Risk Management – Interview with Sebastian Rommel from elero
In this blog article we want to share insights on our favorite Supply Chain Risk Management success stories. For this reason we had an interview with Sebastian Rommel from Strategic Purchasing at elero, on how elero mitigates risk along their entire supply chain and how elero implements proactive Risk Management.
Elero is a global company focusing on making roller shutters, awnings, Venetian blinds and rolling doors roll electrically at the push of a button. Sebastian Rommel has already told us, that Supply Chain Risk Management has been an important topic at elero for the last couple of years.
Why & how elero implements proactive Risk Management:
Mr Rommel, which challenges have you met in your approach to monitor your supply chain risks over the last years?
We have known the importance of risk monitoring in order to mitigate and prevent risks in the supply chain for quite some time. For this reason we used an excel-based solution which should provide information and monitoring of the most important suppliers in place for the last 2-3 years. But it became obvious that excel could not fulfill all our requirements. Excel was not only too limited in its features but also very difficult to maintain. The effort to update excel manually was enormous.
What are the success factors for your Supply Chain Risk Management strategy?
Our main approach in Supply Chain Risk Management is managing risks proactively, monitoring the global supply chain holistically and getting risk alerts by an automatized early warning system. This is especially important, because we want to be informed about risks as soon as possible in order to take the right actions to prevent supply chain disruptions and production shutdowns.
Hence, we opted for the riskmethods Supply Chain Risk Management Solution as our fully-automated Supply Chain Risk solution. The cloud-based SaaS tool enables us to monitor and assess risks along the entire supply chain, including all our suppliers, locations and logistic hubs. In doing so, we monitor all kind of risks like natural hazards, fires, strikes, compliance, geopolitical situations only to name a few. Because of the riskmethods early warning, it is possible for us to supervise all risks in near real-time and are therefore in the position to react appropriately in case of a risk event. Furthermore, the riskmethods SaaS tool enables us to connect different data sources like MunichRE Nathan Risk Suite, Creditsafe, Worldbank, CIA as well as the riskmethods Risk Intelligence, which is monitoring over 300.000 online sources. This is why we at elero are not only able to react to actual events, but also to assess potential risks and manage them proactively. Thus, the preciseness of the provided data is very fundamental to us. Another important factor in our approach is the aspect of automation and therefore the reduction of manual risk research.
To what extent is the topic Supply Chain Risk Management in your organization established?
At elero, the business divisions strategic purchasing, commodity management and quality all have access to the Supply Chain Risk Management Software and work closely together. Especially the planning of adequate preventive measures requires a close collaboration of strategic purchasing and commodity management. We plan on basis of all potential risks a joint strategy in order to be prepared for risk events. This gives us a competitive edge, because we are capable to have a backup plan for our most important suppliers, for example by securing alternative procurement sources, throughout the process.
What are in your opinion the key elements of your Supply Chain Risk Management tool?
Besides the aforementioned factors like the holistic approach and the full automation, the various assessment options are coming to my mind. The Supply Chain Risk Management Solution provides us with a lot of options to evaluate and analyze the most important risks, trends and risk portfolios as well as singular comparisons between suppliers, countries and locations, which helps us with the selection of the best supply chains, suppliers and hubs as well as identifying the best possible preventive measures.
What we also were very delighted about, was the fact that the riskmethods Supply Chain Risk Management could be activated only 24 hours after the import of the necessary data. At elero, we really appreciated, that the Supply Chain Risk Management Solution does not require elaborate installation and maintenance. Another feature I liked and use regularly is the riskmethods iPhone app. Due to the app, I have comprehensive access to occurring risks, affected supply chains and risk potentials from anywhere. Regarding the user experience, I can only tell you that the application is easy and intuitive to handle. We truly consider the solution to be fun-to-use.
We want to thank Sebastian Rommel for this short interview and his interesting insights into Supply Chain Risk Management at elero.
Do you also want to secure your supply chain? Get an overview of the riskmethods Supply Chain Risk Management Software.
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