Mon, 26 Apr 2021

Avoiding production downtime with Risk Supplier Management (RSM).

All Blog Articles

The Challenge

Continental Automotive GmbH, a subsidiary of Continental AG, is one of the world’s leading automotive suppliers.

In order to prevent losses, production downtimes have to be reduced as much as possible through short reaction times and the use of coordinated catalogues of measures if risks occur.

The Solution

For loss prevention and systematic risk analysis, Continental implemented VertiGIS’ Risk Management and Business Continuity solution (RMBC) in cooperation with one of the leading SAP consulting firms in the automotive industry, MHP.

The RMBC solution consists of three modules that are aligned with the existing processes at Continental: risk analysis, proactive risk management and risk information systemization.

In order to decide which risk categories will be included in the risk analysis, each category is considered and evaluated individually by a panel of experts and each risk assessment is subjected to a cost-benefit calculation. Once the risk categories have been determined, quantitative risk assessments are carried out considering the probability of occurrence (probability) and effects of actions (impact) on the Continental Automotive Group. The combination of probability and impact results in three possible risk characteristics that are shown on the map for each location.

The solution for the management of supplier risks (RSM) was implemented on the existing Continental IT infrastructure as an on-premises solution and is based on SAP as the leading system. The module RSM Map is based on the ArcGIS platform and integrates with several other systems including the data services of SwissRe (natural hazards data). In RSM Map, the various risks are evaluated for each supplied component and written back to SAP. Various synchronization mechanisms are realized by the SAP PI interface.

The Result

The transparency in the sourcing process down to the component level, and the possibility of evaluating alternative procurement options at an early stage, shortens the reaction time whenever risks arise. The provided catalogues of measures can then be used in a targeted manner, which has greatly increased efficiency throughout Continental AG’s organization.

All Blog Articles