March 27, 2006
SupplyOn AG, the provider of Internet services for the automotive and manufacturing industry, has expanded its procurement solution to include active risk management functionalities. Purchasers will now be able to call up detailed information concerning the financial stability of their suppliers. A questionnaire enables them to request the data they need to carry out a risk assessment of their business partner. Meanwhile suppliers can create an even more distinctive image for themselves in the SupplyOn Business Directory and provide details of their own stability.
The first step is to identify risk
Insolvency on the part of a supplier can incur serious costs for its customers. Given the financial key data, however, the risk of insolvency can be identified before it is too late. This is where SupplyOn can help. In a private area of the Business Directory, buyers now have the option of raising a questionnaire, in response to which suppliers can provide details to support an assessment of the potential insolvency risk.
In addition, suppliers listed in the Business Directory can now post the results of independent assessments by external rating agencies – for example Standard & Poor´s and Moody´s – or provide their own rating based on the R-Cockpit™ standard. The R-Cockpit™ rating software developed by Prof. Dr. Schneck Rating GmbH has been applied by the German Association for the Automotive Industry VDA since 2004 as the VDA rating standard. The assessment criteria include technological capabilities, quality assurance, customer loyalty and value chain dependencies.
“The reliability of the supplier is of decisive importance for the purchaser’s own competitive strength. In a worst case scenario, production lines could come to halt, which would entail huge costs,” explains Dr. Stefan Brandner, Director Product Management at SupplyOn. “With this extension to our procurement solution, we aim to support buyers in actively managing risks. At the same time, expanding the functionality of the Business Directory also gives suppliers the opportunity to cut an even sharper profile.“
