Securing supplies from an insolvent supplier with a high level of process know-how

When insolvencies cause a sudden change in the supply chain, fast reactions are required. Often, “snap decisions” are taken, describing the famous path “from the frying pan into the fire”. In such situations, we quickly point out resilient decision alternatives and support fast and viable solutions with our network in Europe.

In this specific case, a southern European supplier found itself in a legally tricky situation of insolvency proceedings, but was able to continue supplying under certain conditions. We were deployed in the project to continuously monitor the supply risks in the entire supply chain on the one hand, and on the other hand to monitor the output at the supplier’s site on a daily basis as well as to evaluate unit quantity and quality risks and to reduce them by means of partly ambitious measures. We were driven to achieve an optimum in production technology and were flanked by legal experts who assessed the feasibility of all measures. Today, production is still taking place at the site, an investor has taken over the production facility – also thanks to our involvement on site – and the supply chain has been fully stabilized.

Profile

Company size

Location

Italy

Period

2 years

Branch

Percentage of individual services

reactive situation stabilization
holistic concept development
risk analysis production performance

Challenge

Ongoing insolvency proceedings of the supplier

High supply risk of the customer plant due to lack of alternative suppliers

Low motivation & discipline of employees

Lack of transparency regarding further supply to the customer's plant

Remote production site

Complex stakeholder composition

Lack of personnel capacity due to high fluctuation as a result of the insolvency

Procedure

Risk analysis of on-site processes, plants and supply chain

Support supplier in insolvency situation according to Italian law, in production management & as interface to OEM

Coordination of equipment manufacturers to maintain equipment

High frequency reporting to OEM

Development and evaluation of alternative sourcing strategies

Maintaining production by sourcing raw materials from the OEM

Results

Service of customer call-offs was ensured

The supplier's production capability was maintained

A 15-week stock of semi-finished castings was built up to minimize risk

An alternative supplier was established to expand the mechanical processing capacities

Preparation of the takeover by a Chinese investor

Fluctuation less than 10%

The project in detail

Project Highlights

On-site management in production

Complex international insolvency law situation

High level of production know-how

Continuous improvement of the situation from the very first hour

Similar projects

We look forward
to hearing from you.

Kontakt

roeren GmbH
Stethaimerstr. 51
84034 Landshut

+49 871 966448-07
info@roeren.eu