Strategic Thought

RM in your Industry >

 Manufacturing

Managing decentralized global operations and supply chains provides a real challenge to leading manufacturing companies. This sector more than any other is finding a real need to break away from the silo-based approach to managing risk at an entity level, to managing risk more collaboratively across the enterprise.

The key challenge to manufacturing organizations is to instill  a consistent risk reporting standard that provides management with the level of transparency required to base more informed industrial structure or investment decisions.

For instance, one of our customers has about 500 factories, businesses in more than 80 countries, with multiple products and a multi-cultural organization. Their key requirement is to provide a consolidated overview of data, with easier access to help get a better grasp of the business processes and their potential risks. They also need to ensure they minimize subsidiary and supply-chain risk through tracking the performance of controls in managing risks against multiple business entities and subsequent thresholds.

Key business benefits our customers have experienced as a result of adopting ARM include:

• Increasing product margins through greater visibility of risks and opportunities throughout the product development life cycle
• Fulfilling more orders by improving efficiencies in the supply and distribution channels
• Reducing supply chain reputational risk with greater levels of transparency
• Delivering a consistent processes adhering to governance standards across multiple sites, divisions and countries
• Reducing reputational risk through greater visibility of disparate operations and suppliers.