Risk Supplier Management (RSM)
For the preventive and systematic analysis of risks, Continental uses our Risk Management and Business Continuity Solution (RMBC) for the supplier evaluation to avoid production downtimes.
Continental Automotive GmbH, a subsidiary of Continental AG, is one of the world’s leading automotive suppliers. With its three divisions Chassis & Safety, Powertrain and Interior, Continental AG achieved sales of approximately €44 billion in 2018. The Continental Automotive Group employs some 241,000 people at over 540 locations worldwide.
In 2015 Continental Automotive introduced the Risk Supplier Management solution (RSM) for the preventive and systematic analysis of risks in supplier evaluations. The aim is to reduce or avoid production downtimes as far as possible by short reaction times and the use of coordinated catalogues of measures if risks occur. The project is being implemented by VertiGIS in cooperation with one of the leading SAP consulting firms for the automotive industry, MHP.
Since its introduction, the RSM solution has been continuously developed.
The solution is operated on the existing Conti IT infrastructure as on-premise solution.
The process steps are based on the Continental Automotive regulations. This means that the risk management process can be divided into 3 main elements: Risk analysis, proactive risk management and risk information system. Each risk category is considered and evaluated individually by a panel of experts, whereby each risk assessment is subjected to a cost-benefit calculation.
For the defined risk categories, 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 both dimensions results in three possible risk characteristics.
The RSM is based on SAP as the leading system, the RSM Map is based on the ArcGIS platform and integrates among others the data services of SwissRe. In RSM Map, the various risks are evaluated at material level and written back to SAP. Various synchronization mechanisms are realized by the SAP PI interface.
Continental Automotive avoids risk-relevant production downtimes using a preventive and systematic approach to risks when selecting suppliers.
The transparency in the sourcing process down to component level and the possibility of evaluating alternative procurement options at an early stage, shortens the reaction time whenever risks arise. The coordinated catalogues of measures can then be used in a targeted manner.