Ensuring profitability through transparent supply chains – Supply Chain Risk Management at HBM

Implementing a comprehensive Supply Chain Risk Management strategy seems to be quite an obstacle for many companies and their people in charge. Otherwise it is not really understandable how that many enterprises still ignore its ever increasing importance. But fortunately there are also some real best-case examples.

In this week’s blog entry I want to call attention to our latest case study „Supply Chain Risk Management at HBM“ which illustrates the know-how and success Hottinger Baldwin Messtechnik (HBM) has experienced with its own holistic Supply Chain Risk Management approach.



Hottinger Baldwin Messtechnik HBM


The company Hottinger Baldwin Messtechnik (HBM)

Hottinger Baldwin Messtechnik signifies leading-edge measuring technology, and is well-known for precision and reliability throughout the world. HBM‘s product range covers the entire measurement chain and provides solutions for determining both electrical and mechanical parameters. HBM operates in the areas of measuring amplifiers for the research industry, strain gages, sensors and transducers, load cells, and evaluation and analysis software.The company employs altogether approximately 1800 people at its four production sites in Darmstadt, Porto, Marlborough (USA) and Suzhou (China).

HBM was faced with the challenge of creating transparency along global supply chains to minimize risks in its supply chain, secure production and ensure profitability.


Implementing Supply Chain Risk Management

HBM realized early the meaning of risk management in global supply chains and consequently already started tackling the challenge proactively four years ago. In collaboration with universities, it defined a concept for determining and minimizing the risks in procurement, and for creating transparency in global supply chains. The Establishing of the HBM supply chain risk management concept in the entire organization is defined in three steps:

  1. What risk is associated with a supplier?
  2. How should the impact be evaluated?
  3. What measures can be taken to minimize the risk?


Challenges behind the implementation

Before the new Supply Chain Risk Management strategy was implemented, all risk and supplier data was collected and prepared using extensive Excel lists. As the risks and data volumes steadily increased, this procedure could however not meet the requirements for very much longer. Data preparation via Excel became increasingly confusing, difficult to process and finally antiquated. A new innovative solution approach was required. One that could guarantee that the data was not only integrated throughout the organization, but that also ensured optimum use of the risk information for implementing suitable preventive actions.

To learn more about the challenges HBM has faced, the solution they have come up and the benefits of our technology to their strategy, we recommend you to read the whole study about the Supply Chain Risk Management process at HBM.

Download our full HBM Case Study


HBM Case Study

HBM Case Study

Rolf Zimmer is a founder and managing director of riskmethods, and is responsible for Finance, Product Strategy and Customer Success Management.

Rolf has been working in software business and procurement for 18 years. He has excellent knowledge in the areas of procurement, supply management and risk management – which he gained from working inside procurement departments as well as from consulting activities at SAP, Ariba and Emptoris, among others. His previous position as Sales Director at IBM included responsibility for distribution of the “Emptoris” Supplier Relationship Management suite and associated consulting services.

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