As a supply chain manager, you are aware that supply security of goods and services has become a global competitive factor.

The turning point in politics is also a turning point for the economy. The so-called magic triangle of product and project management being made of performance-costs-time is history. The risk has been forgotten and must be added!

Covid, war, natural disasters - the world is getting smaller and faster. As far as can be foreseen, the crises are getting bigger and more frequent. Current, concrete examples of this are the struggle for raw materials, the limited resources of states to curb inflation, the collapse of key supply chains, for example in the port area, and the shortage of skilled workers.

The risk has been forgotten… Now what?

If you want to reduce your company's susceptibility to disruptions in the supply chain, then this means: The balance between cost efficiency and robustness against disruptions must be readjusted. However, a complete shift from a just-in-time approach to a just-in-case philosophy quickly becomes unaffordable. In our consulting practice, we therefore represent the balance by means of a flexible, company-specific circle.

The New Magic Circle: Performance-Cost-Time-Risk

In the new magic circle of performance-cost-time-risk, all four elements are connected and influence each other. The reduction of risk costs money in the same way as increasing performance or reducing cycle time (e.g. delivery or development times).

How to strike the balance between these conflicting goals has to be answered anew for each company and depending on the current situation.

Adequately setting and maintaining the balance between all four elements is difficult.
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Take the right steps

How to strike the balance between these conflicting goals has to be answered anew for each company and depending on the current situation.

First of all, understand the strengths and weaknesses of your company - tip: use our Supply Management Risk Checklist for example (see above/below).

Check your risk management regarding...

  1. goals and goal measurement (which KPI are best?),
  2. the classification and recording of risks (Are suppliers' locations investigated sufficiently well? How are risks checked at suppliers and subcontractors in the supply chain? Does the system take into account the importance of individual supplier parts and services?),
  3. the frequence of the process,
  4. the implementation of measures.

When reducing the risks, include as many different levers as possible in your considerations, not just second sourcing, near shoring or right shoring and increased stock ranges! (see also our checklist)

Align your supply chain risk management with regulatory requirements like the Supply Chain Due Diligence Act and look at both together.

Take a look at the resilience of the entire supply chain, including subcontractors.

Don't just check risks, but also check how you can take advantage of opportunities that arise from discontinuities and shock events!

Everything is interconnected...the risk quickly becomes unmanageable...
Checklists help to get a handle on complexity.

Collect indications of risks from as many sources as possible, e.g. from your supply chain through particularly good relationships with your suppliers.

Use your good relationships with your suppliers actively to minimize risk and nevertheless make sure that appropriate measures are mapped out in contracts.

Deploy state-of-the-art supply chain management that leverages AI, big data analysis and IoT technologies for risk identification, demand planning, make-or-buy decisions, logistical transparency and inventory management .

Train and incentivize your employees to identify risks.

Improve your system continuously by measuring the quality and speed of your decisions.

Risk should always be accompanied by a conscious decision.

The four basic options are "avoid", "reduce", "transfer" or "accept" the risk.

Not all risks can be avoided.

Clemens Rinnebach & Network enable companies for a successful supply chain management

When it comes to efficiency and security of supply, Clemens Rinnebach, face of Emarticon, can introduce himself as an expert in this area:

  • Clemens Rinnebach gained experience in developing and implementing supply management strategies as management consultant at BCG and Kearney.
  • As a Vice President (VP) Strategic Procurement at Siemens and CPO (Chief Procurement Officer) at Allgeier SE he was able to make a significant contribution to the success of these companies through suitable and state-of-the-art procurement methodologies.
  • As an interim manager and consultant in the supply chain, he has implemented numerous successful projects in various industries since 2015.
Clemens Rinnebach, expert for AI-based sourcing & supply chain management

Project example high-techology: Project management in supply chain management at Zeiss

Clemens Rinnebach took over project management in supply chain management at Zeiss Semiconductor Manufacturing. Three new suppliers were introduced successfully and the throughput (move rate) increased significantly. The main challenge was adhering to technical specifications, as the project was working at the limits of what is technically feasible in the sub-nano range.

The main success factor was keeping all risks of the project transparent and coordinating decisions together with a cross-functional team with representatives from quality, logistics, technology and commercial experts.
Semiconductor manufacturing is high-tech that places the highest requirements on the supply chain and risk management.

Project example Pharma

By bundling and synchronizing procurement and logistics, costs and risks can be reduced at the same time, particularly in the pharmaceutical industry.

For the customer STADA, Emarticon took on the task of optimizing factory purchasing for the European plants. Significant cost savings were achieved by synchronizing procurement and logistics. At the same time, security of supply was increased.

Use the services of Emarticon for your company's success

Use the services of Emarticon for your company's success

Use the services of Emarticon for your company's success

Clemens Rinnebach and his team of experts can also support you and your company successfully with the following tasks:

  • Analyzing the risks in your supply chain and supplier portfolio
  • Working out your options for action to assess risks and comply with legal standards
  • Identify and coordinate appropriate measures such as changes in processes, responsibilities or your company's products
  • Support with the implementation
  • Checking and making periodic adjustments
  • Preparing, accompanying and conducting contract negotiations