Creating the perfect climate for Supply Chain Risk Management Stefan Måhl, VP Global Sourcing, Munters Group

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1 Creating the perfect climate for Supply Chain Risk Management Stefan Måhl, VP Global Sourcing, Munters Group 1

2 Munters Group 60+ Years of innovation 7 billion SEK in annual Net Sales 3,800 Employees (including temporary workers) 18 Manufacturing plants 6 Logistics and assembly hubs 55 Offices in more than 30 countries 2

3 The world s climate control experts Manufacturing plants: 18 Logistic and assembly hubs: 6 Sales and service offices: 55 Countries covered remotely by Munters or by partners: ~ 60 Headquarters: Brentford, UK and Kista, Sweden 3

4 Munters our prerequisites.. Munters deliver products to complex projects with dedicated slot times for installations require highest possible focus and delivery precision deep understanding of each delivery route Serving customers with very high demands, e.g. automotive, pharma, aerospace, healthcare etc. late deliveries is not an option real-time information is expected corrective and preventive actions are required Sustainability Munters is expected to offer products and solutions that strengthen customers sustainability profile always strive for smartest transport solution with lowest possible climate impact 4

5 Munters current RM monitoring Cooperation with riskmethods established in 2017 using Risk Radar and Impact Analyzer Status of current risk monitoring, class-1 suppliers: Europe (45/45) Americas (33/33) ASIA (primarily China) to be integrated in Q3 Munters global critical component list, part of the scope No of sub-suppliers to class-1 suppliers: Europe, Americas (in progress), part of the KPI target setting for Category Management 2018 ASIA (not started) to be integrated in Q3, part of the KPI target setting for Category Management

6 Type of threats (beyond finacial) Munters realized during the journey M&A, change of ownership influencing current business relationship(4) Natural hazards, snowstorms(7) Man-made disasters, strikes(2) Other(2) 6

7 Benefits for Munters Solid SCRM process appreciated by both internal - and end customers healthy preventive measures, rather than corrective.. Reduced insurance premium due to stable risk management structure onsite audits conducted by insurance broker led to reduced annual fee Minimal gathering of Capex info, improves decision making tool library, dual tool set in risk regions fact based decision on dual sourcing in risk regions 7

8 My view on riskmethods Solid Supply chain understanding Quick understanding of Munters RM needs - without pitching too high.. Easy to reach Result oriented Strives to develop our business Several visits to Kista (Munters HQ) during 2017 and 2018 continuous follow-up meetings to ensure we are a happy customer.. training support Stefan Måhl, VP Global Sourcing - Munters Group 8

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10 SUPPLY CHAIN RISK MANAGEMENT THE INTELLIGENT WAY TO MANAGE RISK

11 A PERFECT STORM JIT/JIS, DEMAND VOLATILITY LEAN PRODUCTION LOWER INVENTORY BUFFERS REGULATORY REQUIREMENTS NORMS & STANDARDS DEPENDENCE ON MULTI-TIER SUPPLY NETWORKS INCREASED SOCIAL AWARENESS Copyright riskmethods 2017

12 COMPANIES IN THE EYE OF THE STORM 12 Supplier plant fire: Peugeot SUV release delayed by 2 months Flooding: Emerson Electric lost 23% profit Port worker strike: McDonalds Japan lost 10% revenue Cracker explosion: Ethylene price increased by 18% Reputational incidents cause 2.8% shareholder value loss in average Copyright riskmethods 2017

13 13 Our Mission Empower companies of any size to master supply risk and create reliable supply networks

14 SUPER-SIMPLIFIED COMPLEXITY 14 Visualize supply chain relations, cover n-tier relationships, identify hidden n-tier single sources Predefined risk inventory and content provisioning integrated Validate impact within seconds, collaborate with supplier Automated, geo-coded impact detection Receive relevant alerts only no noise Copyright riskmethods 2017

15 End-to-End Supply Chain END-2-END SUPPLY CHAIN RISK MANAGEMENT 15 Monitor threats, identify impact, mitigate risks Supplier Customer Location Country Own Site Supply Path Copyright riskmethods 2017

16 Indicators Risks Risk Area COMPREHENSIVE & HARMONIZED RISK PROFILE Viability Delivery Market Image & Compliance Quality & Performance Financial Stability Pandemic Outbreaks Wages Labor, Health & Safety Quality Innovation Potential Disaster & Natural Hazards Currency Changes Environmental Performance Operational Infrastructure 3 Indicators Information Security 4 Indicators 27 Indicators Political Material availability Disputes 29 Indicators Actionable detail level Earthquake Volcano River Flood Tropical Cyclone Extratropical Winter Storms Wildfire Flash Flood Hail Storm Storm Surge Lightning Tsunami Tornado Regulatory & Legal 15 Indicators Copyright riskmethods 2017

17 17 EMBEDDED RISK FEED & NEAR-REAL TIME MONITORING GEO-RISKS COUNTRY-RISKS COMPANY-RISKS RISK INTELLIGENCE (GEO-, COUNTRY- & COMPANY RISKS) Copyright riskmethods 2017

18 MOBILE COMPANION (iphone & ipad) Real-Time alerts via push notifications Easily locate regional events on interactive map and potentially impacted suppliers Simple research request to get research from riskmethods Risk Intelligence Get our latest mobile apps now! Copyright riskmethods 2016

19 BECOME A SUPPLY CHAIN HERO 19 Competitive advantage: Be the first to react Compliance: Effective Risk Management ISO 9001, IATF Category strategy: Consider risk data in RFx decision scenarios Differentiation: Demonstrate your resilience to your prospects and customers Digitization: Leapfrog into the digital future within days (Cloud, Mobile, Big Data, Machine Learning) Fast activation: No lengthy implementation projects Copyright riskmethods 2017

20 riskmethods 20 Experts: 120+ supply chain professionals Innovative: Award winning solution Global player: Worldwide partner network Proven: Deployed by 120+ enterprises Scalable: Affordable for any company Leading: Fastest growing provider globally Recognized Visionary & Market Leader: riskmethods USA Boston, USA Headquarter Munich, Germany Copyright riskmethods 2017

21 MORE INFORMATION 21 If you would like to have more information we recommend: Why the ROI of Supply Chain Risk Management is so important Risk: The Next Opportunity for Procurement to Extend its Value (Whitepaper by The Hackett Group) Try it yourself: Request a demo Visit our resource center for more whitepapers, webinar recordings, case studies and videos. Copyright riskmethods 2017

22 Address Orleansstrasse Munich Germany Contact Rolf Zimmer, Co-Founder rz@riskmethods.net Website riskmethods.net

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