Case Study
Evaluating vendor supply chain risks for a European industrial group
Supplier intelligence | Benchmarking against peers | Risk assessment
Business need
- An international supply chain consulting firm was mandated by a European industrial group to conduct risk assessment of one of its incumbent suppliers, a German motor solutions provider.
- The end-client wanted to get a detailed assessment of the company, financial performance of its end-user industry segments, top selling regions, key customers.
- It wanted a comprehensive view of the product offerings across brush and brushless motors, their pricing and competitive advantages, sales and profitability.
To get a full view of the operational and financial risks of the incumbent supplier and proactively address them.
The client outlined two key reasons for selecting RocSearch:
- Our ability to rapidly deploy customised teams with expertise in supply chain consulting.
- Our flexible client-centric engagement models.
Approach and Methodology
- Our strategic advisory team made a comprehensive assessment of the global market for DC motors, the incumbent supplier’s market share, its financials and operations. We gathered insights on its profitability breakdown by product types and conducted a detailed peer comparison for various motor categories across brushed and brushless motors.
We conducted in-depth interviews with the company’s ex-employees and distributors to gather critical insights on its leading clients, their revenue shares and estimated profits across end-user industry segments.
- We shared insights about the company’s sales breakdown by product type, end-user industries, geographies and top stock-keeping units.
- We further deep dived into civil motors and medical motors and gathered details on their segmental revenues, respective market shares, customers, product models , pricing and their technical advantages.
Business Outcomes
- A detailed assessment of the supplier’s financial health, operations and comparison against peers provided insight into the potential risks related to financials, solvency and business continuity.
- The study enabled the end-client to take appropriate risk mitigation measures for its supply chain.
The study enabled the end-client to take appropriate risk mitigation measures for its supply chain.
