Companies – especially manufacturers of products – depend on a smoothly functioning supply chain. Risks can arise, for example
- in the sudden price increase of raw materials,
- by the failure of one or more suppliers, or
- natural disasters and thus a sudden shortage of certain raw materials.
Risk management software in the supply chain helps to identify and evaluate such risks at an early stage and to take countermeasures.
For example, purely based on price advantage, it may make sense to source supplies exclusively from abroad. In terms of risk management, strategic second suppliers can make sense, even if they may produce more expensively. Establishing a software-supported risk management system helps to make such decisions.