Vivecon Corp. Introduces New Supply-Chain Risk Management Solutions for Auto Industry
Software Applies Financial Engineering Techniques to Tooling, Capacity and Sourcing Decisions
MOUNTAIN VIEW, Calif., Oct. 11 -- Vivecon Corp., the leader in supply chain risk management solutions, today announced two new offerings that enable automakers to optimize tooling, capacity and sourcing decisions. Vivecon's new Strategic Component Manager and Tooling & Capacity Manager software applies financial engineering techniques -- similar to those used on Wall Street -- to deliver business intelligence that factors demand uncertainty and supply risk into automaker's decisions. Unlike traditional supply chain analysis software that uses historical data to describe transactions and events that have already happened, Vivecon's Tooling & Capacity Manager and Strategic Component Manager software provides risk monitoring and hedging capabilities. Using Vivecon software, auto manufacturers and their suppliers can, for the first time, anticipate the effects of changing demand and market uncertainty to minimize the disruptive effects of supply-demand mismatches.
Vivecon's Strategic Component Manager software enables automakers to quantify specific risks and develop hedging options for mitigating the effects of unpredictable swings in demand. Vivecon's Tooling & Capacity Manager software helps manage highly uncertain demand for new car options, then monitors market acceptance under varying conditions. This enables manufacturers to structure flexible, cost-effective tooling and capacity expansion options and avoid costly over- or under-investments in new product launches.
"Predictive, actionable analytics represent a major step forward in managing the risks inherent in capital equipment investments and procurement commitments," said Ann Grackin, partner and co-founder, ChainLink Research. "This functionality has broad applicability for any manufacturing supply chain affected by market uncertainty and volatile demand."
Auto manufacturers rely on innovative options to differentiate models and generate incremental revenue. However, fickle consumer demand for new options increases the risk inherent in capacity and sourcing decisions that must be made months -- even years -- before they are brought to market. Using the sequential capacity capabilities in Vivecon's Tooling & Capacity Manager software, automakers are able to lower their initial tooling investments for a new car option by structuring tooling and capacity expansion options that are exercised only when needed.
Vivecon's Strategic Component Manager software enables automakers to structure more flexible and responsive supply contracts for components and raw materials without increasing liability risk to themselves or their suppliers. For example, the software's "early warning system" alerts automakers to availability constraints, price fluctuations, and liability exposures. As a result, automakers can secure availability commitments and price caps, gaining a competitive advantage and minimizing the impact of market allocation dynamics.
Vivecon automotive solutions have already enabled one automaker to reduce tooling expense by up to 12 percent while still maintaining 95-percent or better service levels.
"By working closely with leading U.S. and German automakers, we have identified optimal trade-offs between costs, liability and availability scenarios for tooling, capacity and materials," said George Devlin, CEO of Vivecon. "Using these key cost-drivers, Vivecon software provides analytics that deliver real, actionable business intelligence and enables customers to make more profitable capacity and procurement decisions."
In addition to solutions for the automotive industry, Vivecon offers solutions for consumer packaged goods and high-technology manufacturers that enable them to quantify and manage supply chain risk and uncertainty throughout product life cycles. By applying Vivecon's analytics to difficult supply chain decisions, Vivecon enables companies to evaluate capacity and sourcing arrangements, optimize conditions, and minimize disruptions. For example, consumer packaged goods companies can replace rules-of-thumb and heuristics for new product launch planning with a scientific approach for gaining supply chain flexibility. Companies that rely on strategic components, such as high technology manufacturers, can consistently balance parts availability and liabilities, enabling them to meet demand without the financial exposure from large inventory positions.
About Vivecon Corp.
Vivecon enables companies to proactively manage supply chain risk and flexibility by uniquely applying proven financial engineering techniques to design and manage supply chains. Using Vivecon Supply Chain Risk Management solutions, many of the world's largest consumer packaged goods, technology and automotive manufacturers now reduce supply chain risk, increase supply predictability, and improve performance of their supply ecosystem to significantly reduce their total sourcing cost. The privately held company is headquartered in Mountain View, California. For more information about Vivecon, please visit www.vivecon.com or call 650-237-4700.