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Risk Assessment

Maintaining Supply Chain Efficiency and Tackling Potential Challenges with Risk Assessment Solutions for a Heavy Equipment Manufacturer

The manufacturing industry has witnessed significant transformation in recent years. The advent of the Industrial Internet of Things (IIoT), smart factories, and automation has helped companies improve efficiency, tackle various supply chain challenges, overcome production and development roadblocks, and hire more skilled labor. As the industry continues to grow, many companies are struggling to keep pace with the fast-paced market and conduct a necessary risk assessment, to identify and address obstacles, and challenges.

There has been a significant upsurge of demand in the heavy equipment manufacturing market, and manufacturers need to maintain proper demand management, risk management, and supply chain systems. The first step to maintain visibility, transparency and business continuity in the industry is to leverage risk assessment solutions, mitigate potential challenges, and secure operational efficiency. Infiniti’s market research experts help heavy equipment manufacturers identify, evaluate, and address various market risks with comprehensive risk assessment solutions, actionable insights, and unparalleled strategies.

Struggling to keep pace with the fast-changing manufacturing industry? Request a free proposal to leverage Infiniti’s business solutions and stay a step ahead of the curve.

Client Profile

The client is a renowned heavy equipment manufacturer based in the APAC region. It produces a range of equipment for construction and mining companies in various countries and sought to ensure efficiency by tackling all potential market risks due to the industry’s constant changes.

Business Challenges

The client witnessed numerous significant changes within the industry and wanted to develop efficient management systems to avoid negative business implications on their stable growth. The heavy equipment manufacturing firm had experienced a significant upsurge in demand due to the rise in urbanization, government investment in construction, and infrastructure improvement in developing countries. However, heavy equipment market players struggled to keep pace with changing regulations, employee and labor safety concerns, and shortage of skilled labor. These challenges caused substantial risks such as hampering production due to non-compliance, potential legal issues due to injury, and inability to maintain operational efficiency across the supply chain. Therefore, the client sought to leverage Infiniti’s leverage risk assessment and management solutions.

Although demand has risen significantly, heavy equipment manufacturers face a variety of industry risks and challenges constantly. Request more information to learn how our risk assessment solutions mitigate potential losses, improve efficiency, and maintain a strategic edge.

Our Risk Assessment Engagement Approach

Infiniti’s market research experts developed a detailed risk assessment engagement to help the heavy equipment manufacturer overcome industry challenges and potential risks. The approach included four phases.

Our experts conducted in-depth qualitative and quantitative research to help the client identify industry developments, trends, changing regulations, and growth drivers in the market. Additionally, through comprehensive discussions with industry stakeholders and relevant data from reliable secondary sources, Infiniti’s market research experts provided the clients with clear insights into the impact of various factors on businesses within the APAC heavy equipment manufacturing industry.

In the second phase, Infiniti’s experts conducted an industry best practices assessment to identify industry leaders and competitors’ successful safety and supply chain strategies, help the client address weaknesses within their supply chain, and develop data-driven strategies to mitigate future complexities.

A risk assessment analysis helped the experts identify and highlight the significant risks impacting the heavy equipment manufacturing industry, including constantly changing safety regulations in different countries and import policies. The risk assessment also aimed to identify factors causing raw material price fluctuations and evaluate reasons for the shortage of skilled labor and high employee turnover within the industry.

The last phase included developing risk management systems to help the manufacturing firm tackle various labor, safety, regulatory, and financial challenges. Infiniti’s experts provided data-driven recommendations to enable well-informed business decisions and mitigate risks.

Business Outcomes of the Risk Assessment Solutions

Infiniti’s comprehensive risk assessment engagement helped the client preemptively tackle potential industry challenges, predict and overcome sudden changes, and maintain efficiency along their supply chain. The heavy equipment manufacturer successfully identified, evaluated, and formulated strategies to tackle industry risks with our experts’ insights. With a robust guide to various country policies and a system to track and understand changing regulations, the company avoided sudden production challenges and maintained productivity. Additionally, they developed methods to attract and retain skilled labor, improved employee policy, ensured better employee safety, and mitigated the possibility of injuries. The risk assessment solution also helped the client identify industry best practices, adopt effective strategies to maintain supply chain and operational efficiency, and produce high-quality offerings with improved speed-to-market. The engagement enabled improved productivity, higher profitability, comprehensive risk management systems and helped the client realize significant savings by preparing for price changes and overcoming supply chain shortcomings.

Speak with our industry experts to leverage our risk assessment solutions and develop data-driven systems to mitigate risks, increase profitability, and maintain supply chain efficiency.

Risk Assessment + Ready-to-Eat Food

Addressing and Mitigating Supply Chain Risks in the Ready-to-Eat Food Market with Risk Assessment Solutions

Ready-to-Eat Food Market Overview

The evolving global economy and a steadily increasing need for employment have made convenience the primary focus for consumers. With digitization, travel, accommodation, communication, and leisure have become convenient and easy to access. Additionally, with delivery services and mobile applications, everything from groceries to fully prepared meals from favored restaurants is a single online transaction away. The food and beverage industry has increasingly felt the pressure of consumer needs and demands to create an alternative to microwavable, packaged, ordered food, or more. Therefore, the ready-to-eat food market has grown exponentially in recent years.

However, without a risk assessment, most companies face severe challenges and disruptions.  Although increasing urbanization, rising health consciousness, and the growing working population have led to a surge of growth and profit in this market, the ever-increasing demand has also made it challenging for companies to ensure supply chain efficiency and stay ahead of all market dynamics and risks.

Overcoming challenges in the difficult ready-to-eat food market requires a comprehensive understanding of the potential market and supply chain risks and brilliant risk mitigation strategies. Request a free proposal to learn how Infiniti’s risk assessment solutions can help your business.

Risk Assessment Engagement Overview

Risk assessment solutions aim to help companies gain a comprehensive overview of their market and its challenges. It also provides market players with in-depth insight into current and potential risks in their market and enables efficient risk management strategies. In this engagement, Infiniti’s risk assessment experts helped a ready-to-eat food manufacturer identify market and supply chain risks and develop strategies to overcome them. Our experts leveraged a risk analysis, market trends analysis, and industry best practices assessment to help the supplier.

Client Profile

The client is a renowned ready-to-eat food manufacturer based out of the United States, distributing across North America.

Business Challenges

As the ready-to-eat food market continues to grow at a substantial rate, the manufacturer struggled to address major challenges along the supply chain that caused significant losses. These challenges included issues with supply continuity, contamination risks, and consumers’ changing preferences. Various complexities, including limited suppliers and inventory capacity shortages, were becoming evident along the supply chain and limiting growth for the client. Additionally, without proper storage, the client risked contamination of their products during transit, consequently risking severe backlash from their consumers. In an industry as versatile and consumer-centric, changing consumer preferences may cause further inventory and supply chain challenges. To address these varying issues, the ready-to-eat food market client chose to partner with Infiniti Research and leverage our expertise in offering risk assessment solutions to identify, evaluate, and mitigate all potential risks in the market and supply chain.

Risk Assessment

Consumers’ changing preferences can be the most significant challenge and risks in a consumer-centric market, such as food and beverage. Request more information to learn how businesses can stay a step ahead of consumers and competitors with our solutions.

Our Integrated Risk Assessment Approach

Infiniti’s risk assessment experts worked closely with the manufacturer’s team to identify the industry’s major challenges and develop a comprehensive approach to address all current and potential risks. The four-phased process included the following:

  • A risk analysis was conducted to identify risks along the supply chain for the ready-to-eat food manufacturer. The process aimed to address the dangers of limited suppliers and inventory capacity shortages and offer comprehensive solutions to mitigate the risks.
  • The experts conducted a market trends analysis to identify upcoming trends in the food and beverage industry and identify factors influencing consumers’ changing preferences to help the manufacturer prepare for forthcoming changes and mitigate the risk of sudden changes.
  • To address the risk of contamination, Infiniti’s risk assessment experts utilized an industry best practices assessment to assess competitors’ and industry leaders’ strategies, storage alternatives, and supply chain plans and help the client adapt their approach accordingly.

Business Outcomes

Leveraging Infiniti’s risk assessment solutions helped the ready-to-eat food market client identify and overcome the various challenges within the market and supply chain. The risk analysis helped the manufacturer mitigate the risk of limited suppliers by identifying more partners and local suppliers to prepare for potential challenges, crises, or logistical mishaps. The client also implemented improved inventory management solutions to reduce wastage and increase the functionality of their inventory.

By understanding upcoming market trends and constant factors that influence consumers’ preferences, the manufacturer adapted its offerings as per demand. Additionally, the client was able to keep track of future market trends and changes and ensure that their offerings kept pace with consumers’ changing needs. Further, after conducting the industry best practices assessment, Infiniti’s risk assessment experts recommended investment into temperature-controlled transit vehicles for their products, particularly ready-to-eat food that may spoil. The client invested their resources as per Infiniti’s risk assessment experts’ insights, reduced losses, and costs, increased revenue, established themselves as an industry leader in the United States, and gained significant market share within two years.

Attempting to address the various supply chain risks in the ready-to-eat food market? Speak with our risk assessment experts to learn how our solutions can help you identify, understand, and mitigate risks with in-depth insights and data-driven recommendations.

risk management

Business Risk Management: Ways to Tackle Potential Business Risks

What is business risk management?

Business risk management is a subset of risk management that is used to examine and understand the risk occurring due to changes in the processes, systems, or other business operations. A business risk framework identifies, tracks, prioritizes, and addresses risks to minimize adversities from unexpected events. Companies can gain the ability to make more informed risk-based decisions with the help of business risk management plan.

With a business risk management plan, businesses can prepare for the unexpected by minimizing risks and extra costs before they happen. By having a risk management plan in place, companies can also save money and make the organization’s future secure.

Identifying and tackling business risks is not an overnight task, it requires careful planning and strategic execution. Request a free proposal to know how we can help create an ideal business risk management framework for your organization.

Business risk management process

  • Identifying risks – Identifying the evolving risks by analyzing internal and external factors that affect the key business objectives.
  • Analyzing risks – It includes the standardization and creation of probability distributions of outcomes for each material risk.
  • Responding to risk – Once potential risks are identified and analyzed, an appropriate strategy needs to be incorporated to address the risk. This is done either by establishing new processes or eliminating the risk, depending on the type and severity of the risk.
  • Monitoring risk and opportunities – The final step in a business risk management process involves continually measuring the risks and opportunities of the business environment. Companies must also keep a check on the performance of different management strategies.

 

Business risk management challenges and how to overcome them

Speed of information

In an era where news and information travel faster than wildfire, businesses do not have the luxury of time to undertake decision-making and formulate strategies as a part of business risk management once the news of a risk event is released. In several cases, a single risk event is attached to other unrelated risk events and when combined it may rapidly begin to erode the organization’s reputation and goodwill. To address such situations, some organizations are working proactively to consider their organization’s responses and business risk management strategies more robustly and well in advance of an actual event. Having different response playbooks that have business risks management strategies and responses identified in advance helps them to quickly respond to risk issues and diffuse some of the adverse effects on a timely basis.

Gain access to our complete portfolio of services and learn how we help clients to overcome their business challenges.

Complexity of business

Cyber threats, disruptive innovation, regulatory shifts, and changing social demographics may trigger significant risks for an organization. Furthermore, these risk drivers may be related to or can trigger other risks, adding to the complexity of the business risk management challenge.  Despite this, the top management in most companies fail to recognize the value of embracing a more holistic and team-based enterprise-wide approach to risk assessment and mitigation. To overcome such setbacks, some organizations are rethinking how they approach risk identification and assessment to find ways to bring together the collective minds of a number of individuals to think through potential risk drivers explicitly and proactively. This is done based on the perceived benefits of putting several minds to work when identifying and assessing risks. It is essential to have varied perspectives on complex risk issues in order to face the realities of today’s complex business environment.

Integration of risk oversight and strategy

Some organizations may experience a disconnect between their organization’s business risk management and strategic planning activities. In many companies, business risk management is viewed as a compliance or regulatory activity. This means that often risk management in organizations are transferred to a lower level, non-strategic position. As a result, the organization’s business risk management efforts are often inadequately integrated with strategic planning. To address this challenge, rather than starting off by analyzing what drives value for the organization, companies must first understand what risks are on the horizon. By starting the conversation with what is strategically important to the business and then asking what might prevent that from succeeding, business leaders will be able to identify how business risk management can be positioned to provide strategic value.

Learn more about our business risk management solutions for business

financial risk assessment

Infiniti’s Financial Risk Assessment Solution Helped a Manufacturing Firm Effectively Manage Risks and Enhance their Profit Margin by 22%

Today, manufacturing is no longer simply about making products. The recent technological advancements and the evolving customer demands have made it imperative for companies in the manufacturing industry to explore new ways of capturing market value. With this, companies in the manufacturing industry are under relentless pressure to enhance speed to market and customer engagement.

But, like all other industries, the manufacturing industry is also not free of risks. Some of these risks potentially destroy the business, whereas others cause serious damage that can be costly. In this context, it becomes increasingly important for manufacturing companies to monitor and manage all types of qualitative as well as financial risks in the industry. With over 15 years of expertise, Infiniti Research has helped many companies to identify potential risks in the industry and formulate actionable plans to mitigate them.

Interested to know more about our services portfolio and their advantages for your business? Request a FREE brochure.

Business Challenge

The client is a well-known manufacturing firm based out of Europe. The client was facing challenges in identifying the potential risks impeding their business growth. Some of the factors causing risks were delays from transportation, issues with third-party vendors, tariff wars, security threats, and workforce management challenges. All these risks not only affected the productivity of the company but resulted in financial losses for the client.Subsequently, , the company was not able to achieve their quarterly targets for 2 years consecutively. This affected the company’s gross profit.

Other challenges faced by the client were:

  • The supply chain disruptions were causing major challenges for the client. These delays occurred due to transportation issues and quality control issues with suppliers. Therefore, with Infiniti’s financial risk assessment solution, the client wanted to identify these supply chain risks before they impact the company’s bottom line.
  • As cyber risks posed challenges for major manufacturing companies operating in and around Europe, the client wanted to monitor the security threats and mitigate them.
  • The client also encountered difficulties in staff management and succession planning. As staff management was essential to keep the business running smoothly, the client wanted to evaluate the workforce risks.

With Infiniti’s financial risk assessment solution, the client wanted to identify all the risks affecting the company and make actionable plans to mitigate them.

Solutions Offered and Value Delivered

The experts at Infiniti Research thoroughly analyzed the client’s historical sales data, factors affecting their sales, and major risks facing the company. In the initial phase, the experts analyzed the risks that the business is exposed to in its operational environment. The second phase included analyzing the link between these risks and different factors within the organization. They also carried out a comprehensive analysis of the severity of the risks and how it affected the business functions. The final phase of the financial risk assessment engagement involved prioritizing the risks based on its severity and managing them individually.

With Infiniti’s financial risk assessment solution, the client was able to identify all the risks affecting their organization and prioritize them according to their severity. Infiniti’s financial risk assessment solution also helped the client to understand all the factors affecting their supply chain delays. This helped them undertake the necessary steps to effectively meet the demands of their products. Consequently, they were able to reduce over-stocks and stock-outs. The experts also helped the client to identify all the cybersecurity threats facing their company. Infiniti’s financial risk assessment solution helped them to protect all their critical data. Also, the financial risk assessment engagement helped the client to understand the workforce management challenges and mitigate them.

Furthermore, with Infiniti’s financial risk assessment engagement, the client was able to:

  • Make accurate market forecasts based on patterns derived from historical sales
  • Closely monitor the movements in the market and anticipate activities that could potentially affect the financial aspect of the company
  • Effectively segregate the tasks to prevent possibilities of fraud and internal threats
  • Identify periods of low cash inflows and effectively plan budgets accordingly

With Infiniti’s financial risk assessment solution, the client was able to make better financial planning and meet their quarterly target. Eventually, this resulted in an increase in profit margin by 22%.

A key step to managing your company’s risk is by conducting a comprehensive financial risk assessment. Request a FREE proposal to know how our engagement can help you mitigate the industry risks.

How do you conduct a financial risk assessment?

Financial risk assessment involves a detailed analysis of potential risks affecting the organization. A well-devised financial risk assessment process supports companies in identifying the risks in the industry and provides an opportunity to mitigate the risks that are most likely to occur. Having a financial risk assessment strategy will help companies to prepare themselves financially for the most likely risks in the industry.

There are three basic steps in financial risk assessment.

Gathering industry data – The initial process in financial risks assessment process involves gathering industry-specific data. This involves gathering information about the company structure, client base, third party engagement, and more. The information collected from these sources will help companies understand risks associated with each sector of the organization.

Interviewing key stakeholders – The company should identify key stakeholders in the industry. Gathering information from them will help companies categorize the common risks in the market and prioritize them. By closely monitoring the key competitors, organizations can identify the risk mitigation strategies employed by them.

Documenting the report – The final step in financial risk assessment process involves documenting the findings and developing recommendations for mitigating the industry risk.

CONTACT US to know more about our financial risk assessment solution and their benefits for your business.

Market Intelligence

Assessing Potential Market Risks for a Machinery Manufacturer – Risk Assessment Study by Infiniti Research

Business Challenge 

Manufacturers invest millions of dollars in resources such as machinery, tools, workforce, products, and more. While these resources are necessary for manufacturing companies, they also pose risks for manufacturers. Smallest risks in operations, ranging from theft and property damage to workforce disruptions and natural disasters can heavily impact not only a manufacturer’s bottom line but their ability to deliver goods for clients on time and on budget.

A leading machinery manufacturer in Canada wanted to develop a new strategy to manage risks affecting the growth of the industry and implement appropriate policies and organizational structures to achieve their strategic objectives.

With years of expertise in offering a actionable risk assessment solutions, Infiniti helps manufacturers to devise an effective risk assessment strategy. Request for a FREE brochure to know more about our services.

 

Top Challenges Faced by Machinery Manufacturers 

Problem Statement 1: Commodity and raw material prices

Changes in the prices of raw materials raised the cost of production. This left no other choice for the organization but to raise their prices. In fact, the rise in prices affected their sales and reputation.

Problem Statement 2: Changes in laws and regulations

Changes in laws and legislation, such as minimum wage laws and overtime regulations increased costs rapidly. With Infiniti’s risk assessment solutions, the client wanted to stay prepared to face sudden transitions.

Problem Statement 3: Economic conditions

An overall recession or economic boom can influence the availability and prices of materials, consumers’ buyer behaviors, labor availabilities, and more. Hence, with the help of Infiniti’s risk assessment solution, the client wanted to understand the industry landscape thoroughly.

Problem Statement 4: Threats to international operations 

The client was looking out to export their products to international markets such as the US and UK. But the changes in international trade agreements such as the US pulling out of NAFTA and the UK leaving the European Union were impacting manufacturing companies. The client, therefore, wanted to understand threats to international operations before making the market entry.

Interested to develop a risk assessment plan to deal with unexpected risks and stay ahead of your competitors.

Our risk assessment solutions can help. Request for a FREE proposal.

Solutions Offered and Value Delivered 

Phase 1: Market analysis

By conducting interviews and discussions with leading market players in the industry, the experts at Infiniti Research helped the client understand price fluctuations. This helped them better manage their production process and deliver machineries on time.

Phase 2: Identifying changes in laws and regulations

By analyzing changes in regulations and laws in the US and UK, the experts at Infiniti Research helped the client make better business decisions. This further helped them manage their workers.

Phase 3: Sales forecasting

The experts helped the client calculate the average sales rate for the next five years. Also, with the help of Infiniti’s industry risk assessment solution, the client was able to gain a thorough understanding of the industry landscape.

With Infiniti’s risk assessment solution, the client was able to identify factors impeding market growth and implement an effective risk management strategy. Also, with the help of our industry risk assessment engagement, the client was able to monitor their market attractiveness. This further helped them to make checklists of potential risks and further devise effective measures to reduce bottlenecks and enhance their overall business efficiency.

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