We are leveraging team expertise from working with major automotive suppliers to deliver customized and highly implementable risk and strategy analytics solutions within the rapidly changing automotive and EV value chains.
All these are compounded by the globalized value chain, production clusters which are not easy to uproot or re-shore, and higher frequency of natural disasters.
What are the challenges?
The Automotive sector as a whole, whether you are an equipment or component provider, a car/truck manufacturer or a dealer, is going through a profound multi-factorial transformation:
- Technological: Electric/fuel cell/hybrid/EV rapid market-share shift with new entrants, and emerging key technology suppliers.
- Organizational: Increased dependence on certain global key suppliers and raw materials for both commodity and specialty components/materials, from semiconductors to battery and minerals.
- Financial: Post-pandemic impact on automotive global supply chain, inflationary pressures causing high interest rates and higher capital costs.
- Geopolitical: Navigating thought new trade alliances and sanctions, uncertainty and cost increases from Brexit
- Societal: Development of shared solutions vs. owned, workforce shortages, and generalization of remote working environment
- Environmental: Increased regulatory and anti-pollution requirements/expectations, impact of 2030/2035 goals for reduced internal combustion car (ICE) sales globally.
- Market: Distinguishing between post-pandemic pent-up demand and underlying trends per region.
How can Vertaeon solution address them?
It is not an easy task to have a near complete visibility on your global operations let alone with 100s or 1000s of value chain partners. Companies are more aware of the need for a risk program, but face high costs, internal expertise for advanced cloud solutions, and resource allocation as barriers. Several companies have various uncoordinated programs to address credit risk or compliance but no other important risk indicators.
With Vertaeon’s intuitive enterprise and supply chain risk analytics, we can identify, assess, prioritize, and monitor on-going risks relevant to your supply, sales, markets or company. We take a comprehensive approach by combining internal risks with macro external risks such as geopolitical or natural disaster risks. This holistic assessment is deployed via a user-friendly, cloud platform which not only eliminates IT installation, but promotes sharing and collaboration among global teams.
Another key aspect we delve into is responsible sourcing or sustainable procurement in order to match company goals on environmental, social and governance (ESG). We track a multitude of variables including governance variables such as bribery and corruption (see our FCPA blog), environmental variables such as energy and water consumption, emissions (See our ESG guidance), waste reduction, and social variables such as labor or employee safety. Go beyond first pass supplier surveys or alerts to understand and minimize risks, grow/maintain market share and achieve sustainable growth with Vertaeon risk platforms!
Risks assessed include
- Company- related
- Country Risks
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All images courtesy of iStock by Getty Images
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