We build strong supply chains
2 June, 2021
The key to being a reliable gear manufacturer is a strong organisation. One of the pillars of a strong organisation is a good supply chain and knowing your suppliers inside out. Apart from that, you also need to set up a good risk management strategy so that you are prepared when things go wrong. At VCST for the last four years, we have been working with a great monitoring system that allows us to work more efficiently than before. In a recent webinar, we highlighted the importance and the benefits of our system together with Riskmethods, who developed the platform.
Powered by Riskmethods
The monitoring system that we have set up, created by Riskmethods, is an AI-driven solution that monitors a vast number of risk factors and alerts us in time when a problem occurs with a certain supplier. By crawling a multitude of websites every day in search of news surrounding a particular supplier and having a permanent follow-up, the system allows us to work much more time-efficient and to react more quickly in the case of an event.
So why did we start to use this system? First of all, the IATF (International Automotive Task Force) demands that a solid risk management system is in place. That way, all parties involved are more protected in case of an event. Second, we realised that the exact moment when we are notified of an event at one of our suppliers matters a great deal. After all, just a single day can make a huge difference. Also, having a convenient way to analyse our suppliers’ performance and segment them would allow us to work with even more efficiency.
How does it work?
The Riskmethods platform shows you a map of the world as well as an impact analyzer on which our global supply chain is visible. All our suppliers are shown on a graph with various colours with green representing a low risk, orange a medium risk and red a high risk. Those colour codes allow us to manage our suppliers very well. Whenever we see a high risk with anyone, we can immediately communicate with them about the problems they have and see how we could help them to resolve the issues.
A nice feature of the Riskmethods platform is the action planner, which allows us to set up a workflow for when an event takes place. The great advantage of that feature is that we can save a great deal of valuable time. For instance, last year in September one of our suppliers was hit by a massive fire. Almost immediately and before some of the suppliers’ employees, we were notified via the system and we set up a risk team that undertook the necessary action. Indeed, we contacted our supplier and customer, reviewed the legal impact, and assessed our stock situation. In the following days, there was intense communication between us and our supplier to ensure that our supply chain was impacted as little as possible. Just three weeks later, we had a plan in place to keep up delivery of the items we needed.
In conclusion, having a clear plan as well as a convenient system to monitor suppliers worldwide has allowed us to be even more efficient and to be better prepared for any event. It’s through initiatives such as this one that we maintain our position as one of the world’s foremost gear manufacturers.