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Sphera > Case Studies > How Clariant stays competitive with Sphera Supply Chain Risk Management

How Clariant stays competitive with Sphera Supply Chain Risk Management

Applicable Industries

Chemicals

Applicable Functions

Procurement

Use Cases

Regulatory Compliance Monitoring
Supply Chain Visibility

Services

System Integration

The Challenge

Clariant, a leading specialty chemical company, recognized supply chain risk management as a megatrend that they would have to manage if they wanted to stay ahead of the competition. They wanted to secure their market position by cooperating with the right suppliers who didn’t pose a threat to their reputation, whether because of noncompliance with regulations, sustainability issues or other reasons. As a chemical company, Clariant can’t produce their products without all the supplies they need—even if that supply is only one tiny component of a much larger product.

About The Customer

Clariant is one of the world’s leading specialty chemical companies, contributing to value creation with innovative and sustainable solutions for customers from a variety of industries. Clariant’s portfolio is designed to meet very specific needs with as much precision as possible. They use Sphera Supply Chain Risk Management [formerly riskmethods] to be more risk aware, react faster and manage risk more proactively than ever before.

The Solution

Clariant uses Sphera Supply Chain Risk Management to identify weak links in their supply chain. Thanks to the interactive world map, they saw that a particular region in their supply chain was vulnerable to disruption, and also observed that the region contained an important single-source supplier. With this information, they were able to take proactive action to source an alternative supplier, and thus prevent the supply chain disruption that would have occurred if their other supplier had been affected by a risk event. Sphera Supply Chain Risk Management [formerly riskmethods] helps Clariant’s procurement function do a better job: preserving and generating real business value and then sharing that value with executive leadership and stakeholders.

Operational Impact

Sphera Supply Chain Risk Management helps Clariant avoid problems that would result in damaged brand reputation and a loss in shareholder value.
Sphera Supply Chain Risk Management gives Clariant a competitive advantage. Their supply chain risk management program allows them to take action before their competitors, which in turn enables them to obtain better prices than competitors, securing their business relationships with their customers.
Sphera Supply Chain Risk Management helps Clariant win new business. Clariant’s potential customers want to make sure that their suppliers have processes in place around sustainability and risk management, and a supply chain risk management enables them to demonstrate that they do.

Quantitative Benefit

Within two weeks of launching their supply chain risk management program, Clariant was able to run a compliance assessment of over 12,000 suppliers—and found that 266 of those suppliers triggered very critical alerts and 474 of them triggered critical alerts.