New software solution for risk management (05/08/2009)

In light of the current economic situation, the challenge of risk management for purchasing is greater than ever. Risks in the supplier base must be identified as early as possible in order to take appropriate measures for avoiding potential damage.

The new Xcitec® Risk Management software enables the early identification of risks in the supplier chain. The new software enables companies to define and monitor risk indicators for suppliers, material groups, regions and markets. The KPIs on which the risk indicators are based can be derived from the various Xcitec® standard software modules (e.g. individual criteria from Supplier Rating or information regarding strategic significance) as well as from KPIs in economic information (e.g. bankruptcy risk or payment history).

The early identification of risks enables purchasing, together with its cross-functional partners in technology, quality control and logistics, to implement and coordinate appropriate measures in time to avoid or at least reduce risks. In other words, a company is not limited to problem eradication measures after they arise. Instead, it can proactively implement targeted risk reduction measures. Graphic analyses, portfolio methodology and a traffic-light systematic create transparency regarding the development of the risk indicators and provide a comprehensive overview of the current state of risks in purchasing. Thus, Xcitec® Risk Management provides a secure method for early risk identification and management.