Case Studies > Case Study Supply Chain Risk Management

Case Study Supply Chain Risk Management

Customer Company Size

Large Corporate

Country

Switzerland

Product

Supply Risk Network
MunichRE NATHAN Risk Suite

Tech Stack

Risk Research
Geocoding Software

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Cost Savings
Customer Satisfaction
Productivity Improvements
Brand Awareness

Technology Category

Analytics & Modeling - Predictive Analytics
Application Infrastructure & Middleware - Data Exchange & Integration
Application Infrastructure & Middleware - Data Visualization

Applicable Industries

Buildings
Marine & Shipping
Railway & Metro

Applicable Functions

Procurement
Quality Assurance
Business Operation

Use Cases

Supply Chain Visibility
Predictive Maintenance
Remote Asset Management

Services

System Integration
Data Science Services
Training

About The Customer

Belimo is an international group of companies based in Switzerland with more than 1200 employees worldwide. Belimo is the global market leader in the development, manufacture and distribution of drive solutions for regulating and controlling heating, ventilation and air-conditioning systems. The core business is made up of actuators and water actuators. Belimo products can be found in rail vehicles and ships, as well as in buildings such as the Burj Khalifa in Dubai, the National Aquatic Center in Beijing and the Empire State Building in New York.

The Challenge

Risk management in multi-tier supply chains is a component that is critical to success for Belimo in terms of ensuring company-wide parts supply, and helps support existing supplier management. Important reasons for initiating supply chain risk management included: Prevention of loss of sales as a result of disruptions in supply relationships, Monitoring of supplier stability, Supporting the sourcing and supplier management process.

The Solution

Belimo uses the Supply Risk Network from riskmethods to monitor various risks in the entire supply chain. Natural hazards, political disruptions and macro-economic factors as well as supplier-related aspects such as corruption, financial stability and regulatory restrictions are constantly monitored. The interaction with the Belimo Sourcing/SRM system offers a solid base for improved contract award decisions as a result of increased risk transparency. The existing integration of numerous data sources in the Supply Risk Network allows for highly automated information procurement. In this way, a degree of automation of over 90% is possible through linking of data sources such as MunichRE NATHAN Risk Suite (natural hazards), World Bank, United Nations Data, CIA (country risks), Transparency International (image risks) and riskmethods’ Risk Research. Risk Research scans more than 300,000 online sources, thereby enabling automatic provision of near real-time information on disasters that have occurred, such as explosions on factory premises, corruption cases, unrest or strikes.

Operational Impact

Belimo scans all risks along supply relationships: Countries, locations, suppliers and their pre-suppliers are monitored in near real time in respect of threats such as political risks (strikes, civil unrest etc.), natural disasters (flooding, earthquakes etc.) or events such as insolvencies or breaches of ethical standards.
The early warning system together with an analysis of the supply chain data then enables risk prevention, so as to safeguard the corporate image and ensure parts supply, among others.
As soon as the risk radar of the Supply Risk Network determines that the tolerance ranges for risk potential defined by Belimo have been exceeded, an alert is generated and sent to the responsible purchasers.
Background risks can be automatically identified to initiate preventive actions: Risk potential is reduced and possible losses are countered at an early stage by Belimo through appropriate action plans.
The interaction with the Belimo Sourcing/SRM system offers a solid base for improved contract award decisions as a result of increased risk transparency, and consequently also for reliable supplier relationships.

Quantitative Benefit