NEW CONCEPT: From 2020 we are launching a new additional concept – read more about our interim services here.
We keep providing our risk management services and improvement of business-critical processes across the value chain optimizing costs, improving supply performance and ensuring competitiveness. Our concepts and tools are primarily designed for mid-size companies within the field of production and distribution and operating in an international environment.
”Even a correct decision is wrong when taken too late”
Lee Iacocca ”CEO Ford Motor Company, Chrysler among others”
Security of supply
Ability to fulfil the supply obligations towards customers and thereby be perceived as a reliable business partner is a prioritized objective for all companies…
Bottom line improvements
Some companies relate increased earnings with increased sales without putting much focus on qualifying its organization to secure financial efficiency throughout the entire value chain…
Competitiveness
Loss of competitiveness can be caused by various factors and is a high priority topic at most of the companies – but the most frequent concerns are often cost and product related…
Security of supply
Ability to fulfil the supply obligations towards customers and thereby be perceived as a reliable business partner is a prioritized objective for all companies…
Bottom line improvements
Some companies relate increased earnings with increased sales without putting much focus on qualifying its organization to secure financial efficiency throughout the entire value chain…
Competitiveness
Loss of competitiveness can be caused by various factors and is a high priority topic at most of the companies – but the most frequent concerns are often cost and product related…
Case-examples
Child labour is one of the topics no company wants to get related to. In the following cases some Danish companies experience negative public relations as a consequence of poor risk management related to responsible sourcing in their supply chain. Cases like these normally tend to get significant public attention and lead to direct negative impact on the company turnover both on short and long term.
“Flere danske aviser trykkes på papir fra en svensk producent, hvis underleverandør er afsløret i at bruge børnearbejde i Pakistan…” Read more
“I aften bliver Toms og Cocio hængt ud som virksomheder, der er med til at støtte børnearbejde. Cocio forklarer sig. Toms er tavse.” Read more
Contractual risk management should be a prioritized discipline among companies working with volatile raw materials, but the reality is often very different. The following cases demonstrate consequences of poor, or even a direct lack of, risk management related to raw material purchasing and its connection to the sales prices leading to negative result on the companies’ bottom lines.
“Prisen på foderstofindustriens råvarer er steget ekstremt, og den ny høst peger på fortsat mangel. Det betyder ekstreme prisstigninger…” Read more
“Kohberg får første underskud i 2016. Direktør forklarer det med hård konkurrence og højere råvarepriser…” Lead more
An example of a financial loss, where a company takes a one-sided commercial position in a volatile raw material market. The risk strategy in this case gives protection against price increases, but also ends up giving the company a risk towards falling prices. Unfortunately this risk management strategy causes an opposite result to the intended.
“SAS betaler en brændstofpris, der svarer til, at olieprisen skulle være dobbelt så høj som det aktuelle niveau…” Lead more