The Vivecon Supply Risk Management Solution
Successful supply chain risk management demands a balance between the inevitable market uncertainty that requires flexible requirements and strong supplier relationships. The Vivecon Supply Chain Risk Management solution portfolio provides unique, highly advanced capabilities that are proven to help companies:

• Proactively monitor and manage supply uncertainties
• Build flexibility into the supply network design
• Design, negotiate, monitor and manage supply relationships

Vivecon helps you achieve this balance by doing what no other solutions can do – quantify risks and costs associated with ranges of demand and supply scenarios. The ability to quantify these variables enables you to build a strong foundation of structured agreements with your suppliers, based on optimal trade-offs between price, liabilities, and availability. The result? A flexible, risk-tolerant supply network with dramatic reductions in Total Sourcing Cost.

Harnessing Uncertainty with Range Forecasts
Even with today’s advanced point forecasting capabilities, forecasts based on a single number require stable demand and supply conditions and a level of accuracy that simply doesn't exist. In spite of the fact that forecasts are notoriously inaccurate, organizations continue to base important business decisions on them.

Vivecon Supply Chain Risk Management Solutions replace point forecasts with more realistic Range Forecasts, which take uncertainty into account. Range Forecasts:

• Quantify high and low demand and supply ranges
• Quantify volatility based on robust analytics
• Provide information on the statistical likelihood of various demand and supply scenarios
• Offer indicators of how demand and supply values are likely to evolve in the future

Rather than ignoring uncertainty, Vivecon Range Forecasts make it part of the equation, enabling you to manage your risk and flexibility requirements based on more comprehensive data and analysis.

Managing Uncertainty with Structured Agreements
Because organizations spend from 30% to 70% of their revenues on the procurement of direct materials and outsourced services, the agreements that govern these relationships are critical. However, supply agreements are usually narrowly defined. In periods of sharp demand rises or declines, the parties are often left scrambling to renegotiate terms and conditions to address the situation.

Using Vivecon Range Forecasts, you can determine high and low demand scenarios for a given part or product, as well as quantify expected volatility within those ranges. Based on a Range Forecast, you can then structure supply agreements to perform well under almost any circumstance. With a portfolio of Structured Agreements based on optimal trade-offs between price, availability and liabilities, you can align your sourcing performance to business objectives and more effectively manage and strengthen supplier relationships.

Monitoring Supply Chain Performance for Lower Total Sourcing Cost
Establishing a flexible and risk-tolerant supply network is not a “one-time” event. As business requirements and underlying market uncertainties change over time, you need to be able to proactively identify and manage gaps over the planning horizon.

Vivecon Supply Chain Risk Management Solutions provide patent-pending “early warning” indicators that allow you to manage through capacity and/or material constraints, price fluctuations or liabilities exposures. By quantifying the impact of supply network changes and demonstrating the effect on overall supply chain performance, Vivecon solutions help you make more informed sourcing decisions throughout the product life cycle. The lasting benefit is significantly lower Total Sourcing Cost.