Volvo Crisis Unit solution : Rhizome

Chorège Crisis Unit Solution : Rhizome @ volvo 

In the current environment, companies are suffering from shortages in multi-site, multi-business, multi-level supply.​​

The Volvo Group reached out to Chorege mid 2021 to support them with the Electronic Component Crisis.

Chorege immediately dedicated a skilled team prepared to go through unpredictable environment with its SupplyChain crisis unit solution : rizHome™.​​

Chorege states that :

  • Volvo teams were in the middle of a semiconductor crisis and were trying to get their parts in the context of worldwide shortages ; the lead times announced exceeded 70 weeks.
  • Information is everywhere, both internally (procurement, purchasing, logistic, etc.) and externally (tier 1, tier 2, brokers, etc.) ; 300 people each hold a piece of information. 
  • There are loads of meetings, the data needs to be checked constantly with the feeling of never really being sure that it is correct. Reports are just a sum of ‘maybe’. Each supplier then decides in the dark, often too late and wondering what will be the next hour’s urgency. 
  • 90% of the time is wasted looking for information, the remaining 10% to decide subjectively.

Volvo says : “Our teams are exhausted and we have lost control of our supply chain

Chorege upgraded Volvo’s organization with its Crisis Unit Solution to :

  • Bring a clear representation of the Information Flow
  • Reinforce the system and give the ability to handle the crisis
  • Control the main KPI of Volvo’s ecosystem

What results after 1 year ?

After 1 year of methods brought by Chorege, the information is more reliable and crisis management is no longer dependent on individuals. The deployed solution drives the performance, regardless of the people :

  • The information is qualified and gathered in one place, all interlocutors (logistic, purchasing, procurement, etc.) share and consolidate as a team the same image, composed of internal but also external elements (spot buy, ERP extracts, tier 1, tier 2 , brokers…)
  • Meetings are efficient, organized and coordinated because cognitive vision saves time. Reporting is immediate.
  • Every material controller play to simulate the levers, then choose the best solution to save time and expenses

Results :

More and more parts under control (perimeter x2),

With better efficiency and higher results (shortages /3, coverage x2),

With less energy (teams /2) and reduced broker expenses (average $ /2)

Volvo says : “10% of the time is now devoted to measuring the situation, and 90% to choose which solution to activate to solve each shortage risk”

When I announce a situation, I am sure of myself, I am serene, and I know the information shared is the right one. I have more credibility”.

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