Resilience in uncertain times: quantifying/ visualizing supplier or material risk to create a resilient supply base with ABB 

This Business Project with ABB is a unique opportunity to solve real business problems.  Buildings consume more than 30% of the world’s energy and contribute almost 40 percent of global carbon emissions. ABB’s Smart Home solutions are leading in the market, combining energy savings and convenience. Given the pandemic, flooding and other climate impacts of the last few months, the importance of a resilient supplier base to assure business continuity in the future has become evident. 

The ABB current supplier base consists of single sources as well as multiple sources per material, However, ABB do not know the risk level of each supplier and therefore the risk level per material. To have a resilient supplier base, ABB needs to spread suppliers around the globe so when facing the next crisis, the value chain is not at risk. 

The analysis will be based upon ABB’s Smart Building and Homes division.  

Overall Project Aims 

There has been numerous approaches and solutions out there in the market ranging from Ariba and SAP to market places and even block chain solutions. Each company seems to treat the challenge somewhat differently and the market seems scattered. 

The project goal is to find a way to quantify and visualize the risk level of suppliers and materials, so that the procurement department can derive respective mitigation actions. Existing methods, which are not being used consistently, should be assessed.  

Furthermore, the risk score itself should be developed and the source of necessary data needs to be defined. This could include the geographical data to score the vulnerability to aspects such as climate catastrophe or political upheaval in the supplier country that could cause supply disruptions. 

Finally, the implementation should be planned and initiated including a visualization proposal 

Project Objectives 

A concept/solution how to best model supply risks in an increasingly complex and disruptive environment. 

1. Create a list of best practices and solutions based on market research

2. Create a mock up conference room pilot or prototype of a future solution. 

Knowledge and Understanding 

After completing the course, students will have: 

• extended their knowledge of risk scoring in supply chains 

• understood the implications of climate change and other global challenges 

• learned how to collect, analyse and structure data 

• developed project management skills 

• received feedback from practitioners on the outcome of their analysis and the viability of their recommendations 

Key Skills 

Students on completion of the course will have the ability to: 

• conduct research on risk in global supply chains 

• gather information efficiently and effectively on specific research topics 

• organize teamwork including presentation and report writing skills 

• filter material quickly and efficiently to structure it into  a coherent argument and to present it in a concise way to a professional audience 

• present this business project to the partner in a professional way, through personal presentation skills and support of suitable media 

• utilize the theoretical knowledge and the interpersonal skills developed throughout their  CEMS studies to solve a real-life challenge 

No late assignments will be accepted under any circumstances. 

Presence in sessions is mandatory, given the importance of personal interaction between students, corporate partner and faculty. More than two absences will lead to exclusion from the seminar. 

To participate, students will be required to sign a non-disclosure agreement. 

The business project uses a combination of discussions with ABB representatives and external solution providers, feedback sessions, presentations, group coaching as well as work outside the classroom. Groups of students will be formed in the first kick-off session. 

In the first kick- off session with faculty, the challenges and milestones of the case will be outlined, At the same time, students will be familiarised with the guiding principles of project work, with the project plan and rules in the handling of faculty/ ABB interaction. 

Afterwards, the students will officially kick off the project in collaboration with ABB. In a plenary session, ABB will outline the challenges from their perspective and provide useful input for the project and will provide input for the project and the specific challenges to be dealt with. As a result of this, students will come up with the precise scope of the project. 

Throughout the process, coaching and feedback sessions with faculty/ABB will take place to make sure that the students are on track and get the relevant input needed at each project phase. During the project you will be supported and coached by ABB data scientists, consultants, advisors, best practice partners and solution providers 

Results will be presented to ABB managers mid-term and at the end of the process.  Verbal and printed presentations will be assessed. 

Assessment will be based upon the quality of the mid-term and end-term presentation, the final report, participation during classes and group members peer review.  

Group level (70%): mid- term presentation (20%) end –term presentation (30%) Final report (20%) 

Individual level (30%): Peer review (20%), participation (10%)