Sphera > Case Studies > Driving Value Creation with Supply Chain Risk Management

Driving Value Creation with Supply Chain Risk Management

Customer Company Size

Large Corporate

Country

Worldwide

Product

Sphera Supply Chain Risk Management

Tech Stack

AI-based risk monitoring
Data Integration

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Cost Savings
Productivity Improvements
Brand Awareness

Technology Category

Analytics & Modeling - Real Time Analytics

Applicable Industries

Automotive

Applicable Functions

Procurement
Logistics & Transportation

Use Cases

Supply Chain Visibility
Predictive Quality Analytics

Services

System Integration
Data Science Services

About The Customer

Joyson Safety Systems (JSS) is a global leader in mobility safety, providing safety-critical components, systems, and technology to automotive and non-automotive markets. Its safety systems solutions allow its customers in the automotive sector the design freedom and confidence to drive the next generation in mobility. JSS was founded in 2018 through the merger of two global automotive suppliers, creating one of the world’s largest manufacturers of automotive safety solutions. The company has regional operations in Japan, Europe, China, and the US, each with their own processes and structures. JSS relies on many small- to mid-sized suppliers for specialized parts, components, and materials.

The Challenge

Joyson Safety Systems (JSS), a global leader in mobility safety, faced several challenges in managing its supply chain risk efficiently. The automotive industry is governed by strict regulations and standards to ensure product safety, quality, reliability, and business integrity. As a tier-1 supplier of safety systems to automotive manufacturers, JSS had to ensure compliance with these laws and rules. The company also had to monitor the financial stability of its suppliers, many of whom were small to mid-sized businesses. The merger of two global automotive suppliers to form JSS in 2018 further complicated matters. The company had to deal with multiple interfaces of systems and databases, and the lack of a systematic approach to supply chain risk management. The company's risk reporting was based mostly on downloads from various regional systems, which were then consolidated manually. This led to inefficiencies and increased the likelihood of human errors.

The Solution

JSS turned to Sphera Supply Chain Risk Management to help standardize and consolidate risk management processes across its entities around the world. The solution was tailored to manage changing supplier portfolios, consolidate supplier development, and integrate data into the existing procurement environment. The implementation of Sphera Supply Chain Risk Management began in early 2021. Within approximately three months, JSS had integrated a base of around 2,000 suppliers. The solution provided comprehensive transparency and a total view of risk within JSS’s value creation, including supplier financial distress, geopolitical situations, natural hazards, reputational risks, and man-made events. It also provided real-time visibility on all supply chain risks, enabling JSS to combine centralized risk management with (de-) centralized crisis management.

Operational Impact

Streamlined decision-making leads to general business benefits for JSS, such as avoiding disruption, emergency freight costs, and penalties.
Sphera Supply Chain Risk Management provides visible proof for stakeholders that JSS has sophisticated risk management.
By understanding in advance where risk events could happen, JSS can better ensure continuity of supply.
Standardized procedures and documentation increase transparency in sourcing and procurement.
Having an automated workflow serves to eliminate redundancy and reduce error.

Quantitative Benefit