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Tetra Pak’s Maria Albertsson on how to build resilience using digital technology

1 August, 2022 | By DPW

Leading food processing and packaging solutions company Tetra Pak has implemented a dynamic supplier risk management strategy with continuous risk assessments and targeted mitigation activities. Tetra Pak relies on the AI-powered technology of The riskmethods SolutionTM to gain visibility across their supplier base. We spoke with Maria Albertsson, Risk Management Specialist at Tetra Pak, about how automation and digitization are key drivers of the program.

Interview with Maria Albertsson, Risk Management Specialist at Tetra Pak

What are your primary objectives for your supplier risk management program?

Albertsson: Overall, we aim to transform the way Tetra Pak works with procurement and secure supply while focused on attaining our enterprise goals related to sustainability, quality and food safety, innovation. We have structured our initiative around the three enablers of our corporate strategy:

  • Productive: To be more productive, we have a risk-based approach, and we link this to our category structure. This lets us understand where risks are higher or lower, and it enables us to prioritize actions. In this way, we improve efficiencies and make risk mitigation more cost-effective.
  • Capable: This is understanding how to best use technology to gain visibility and knowledge of our risks, and the risks at our suppliers. Also, using technology allows us to involve fewer people and reduce manual administrative tasks. We use a central tool to consolidate data, both internal information on suppliers, as well as from external partners.
  • Dynamic: Being dynamic means we want to simplify our internal processes and move toward continuous risk assessments rather than one huge annual reporting effort. This helps us identify risk and mitigate exposure to risk faster. We also want to continue to move to more proactive and even predictive risk management.

What have you achieved by using digital technology of The riskmethods Solution™?

Albertsson: A shorter reaction time! Technology, in particular, real-time monitoring by AI, allows us to get information earlier. It means we can make data-driven decisions, react faster to critical events, and the increased visibility leads to more cost-effective risk mitigation for us. For example, thanks to real-time monitoring, we gained 3-4 days’ time in a critical event, and could react before the supplier declared force majeure. Another case is cyber incidents, which suppliers may be hesitant to tell us about. When we learn of such events, we are immediately able to contact the supplier to ask whether we as customer are affected.

Specifically, The riskmethods Solution allows a personalized configuration, for instance, the possibility to configure different dimensions, score cards, filters, etc. to fit our needs. This enables us to share tailored reports for specific subset of suppliers, but also to secure transparency and collaboration within the wider supplier base.

And last but not least, we can capture information from stakeholder organizations, to combine and compare the information on one common platform, so we are able to easily generate reports. All of this leads to more effective and efficient supplier management:

  • Reduces the time needed for assessment while involving fewer people
  • There is no duplication with corporate processes
  • So, we also set “triggers,” or thresholds, which help us decide at which point we need to act. This has helped us to focus our efforts, not try to do everything, and not all at once.

A shorter reaction time! Technology, in particular, real-time monitoring by AI, allows us to get information earlier. It means we can make data-driven decisions, react faster to critical events, and the increased visibility leads to more cost-effective risk mitigation for us.

Maria Albertsson, Risk Management Specialist at Tetra Pak

What are your next steps to build out your supplier risk management program vision?

Albertsson: Currently, we use The riskmethods Solution primarily for supplier management. But we would like to continue our journey to sub-tier visibility, where we build the focus on visualizing multi-tier suppliers. In addition, we would increasingly monitor supply paths, to help us counteract shortages and disruption. And, as mentioned, we will closely monitor specific risk areas such as cyber.

Overall, we will continue to involve stakeholders, and embed risk management processes in daily activities. We plan to integrate new data sources and secure the integration of data from The riskmethods Solution into our systems and tools. Based on our journey, my advice for anyone looking to build a SCRM program is simply to get started and build from there.

Learn more from Maria and the Tetra Pak team’s journey to resilience at DPW Amsterdam 2022 on September 22, 2022 at 14:30 pm CEST.

Book a meeting to meet the riskmethods team at DPW Amsterdam 2022: https://go.riskmethods.net/book-a-meeting-at-DPW22

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