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
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”.