Risk management has become an outstanding success factor in procurement by 2019 at the latest with the outbreak of the Corona crisis and in 2022 with the outbreak of the Ukraine war. In the procurement strategy the balance between cost efficiency and robustness against disruptions must now be readjusted.

Decisive for effective support are our many years of experience as a procurement & supply chain consultancy.

Risk identification and avoidance as a success factor

The so-called "magic triangle" of procurement management consisting of "performance-costs-time" is history:

The risk has been forgotten and must be added! In recent decades, globalization and relative stability have led to reasonably risk-free trade and raw material supplies. Supply chains are now collapsing and previously reliable suppliers are no longer available.

The risk has been forgotten.

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

Risk management in purchasing must be rethought.

In our consulting practice, we achieve the new balance through a flexible, company-specific circle. In this "new" magic circle of performance-cost-time-risk, all four elements are connected and influence each other. Reducing risks, for example, costs money in the same way as increasing performance or reducing cycle time (ie delivery or development times) does.

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Do you want to lower your risks?

Contact Me. I would be happy to discuss your specific situation with me as part of a strategy meeting.

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Adjust risk management procurement with Emarticon: reference projects by Clemens Rinnebach

Reduced the risks of sourcing high technology by improving supplier alignment throughout the supply chain, including sub-sub-suppliers

Developed a new procurement strategy with two main levers: a) second sourcing & b) supplier development

Improved the methodology for forecasting material requirements through better sales processes, improved coordination of organizational parts, the procurement of new software, optimized SKU management and corresponding employee incentives in the area of material requirements

Revised and expanded global sourcing in the field of electronics procurement - in this context, identified and qualified new suppliers in the Far East through on-site auditing using a specially developed audit program

Worked out a new approach to project management for large, international IT development projects

Would you like to download our supply risk management checklist for free?

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

With the help of Emarticon, you can put procurement risk management on a new basis, which takes into account the "performance-cost-time-risk balance".

These are the services we offer you:

  • Risk identification: Analyzing the risks in the supply chain and supplier portfolios
  • Determination of external and internal factors influencing the supply risk
  • Working out options for action to reduce procurement risks, comply with legal standards and use competitive advantages
  • Identifying and coordinating suitable measures such as changes to processes, responsibilities, the supplier portfolio, technologies used or the company's products
  • Installing adequate KPIs (Key Performance Indicators) to measure the risks and implement measures
  • Support with the implementation
  • Taking on tasks as an interim manager, e.g. by preparing, accompanying and conducting contract negotiations
  • Operative renegotiation of supplier contracts
  • Constant risk monitoring: checking and making periodic adjustments