Predictive AI revolutionises supplier risk management in the automotive industry

Talan's expertise makes the difference.

What you must retain from this transformation? To secure the supply chain of this international automotive manufacturer, Talan combined advanced data science, explainable artificial intelligence, and interactive visualisation. This approach transformed supplier risk management into a strategic lever, delivering quantifiable results with direct impact on operational performance..

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In a rapidly evolving automotive market

Within a global automotive sector undergoing profound revolution (electrification, connectivity, autonomous driving), manufacturers face unprecedented pressure on their supply chains. Our client, a major player in the automotive industry, confronted this demanding reality.

The automotive sector must today contend with :

Increasing complexity of electronic components and emerging technologies, multiplying the references to source and secure
Shortened development and time-to-market cycles, demanding heightened responsiveness across the entire supply chain
Intensified global competition, with emerging manufacturers disrupting traditional market equilibria
Non-negotiable quality and safety requirements, imposed by regulations and consumer expectations
Constant margin pressure, necessitating continuous optimisation of procurement and production costs

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The client's supplier management challenges

Unpredictable supply chain disruptions

Growing difficulties in forecasting delivery delays or receipt of defective components, resulting in costly production stoppages

Delayed problem detection

Risk identification post-occurrence, limiting preventive action possibilities and necessitating emergency corrective measures

Dispersed and unexploited data

Inability to simultaneously analyse multiple risk factors (historical quality, financial stability, geopolitical context) due to inadequate tools

Decision-making silos

Lack of coordination between procurement, quality, and production departments, each operating with distinct tools and indicators

Underestimated financial impact

Considerable hidden costs of disruptions (express shipments, buffer stock, production line downtime) insufficiently quantified

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Talan's positive impact :

The implementation of a predictive model for supplier risk management generated tangible benefits across the entire value chain.

From measured operational impact...

-30% Reduction in Disruptions: Significant drop in late or faulty deliveries, lowering production downtime.

-15% Cost Savings: Lower emergency shipping and inventory holding costs due to earlier detection of supplier issues.

ENHANCED LOGISTICS PERFORMANCE:

-20% Improvement in On-Time Delivery: Enhanced visibility and proactive measures improved overall delivery performance.

-Faster Issue Resolution: Real-time alerts and clear risk scores enabled the risk department to act on potential problems 25% more quickly.

...To strategic objectives

-ENHANCED OPERATIONAL RESILIENCE: Capacity to anticipate and mitigate risks before they impact production

-STRONGER SUPPLIER RELATIONSHIPS: Data-driven insights facilitated transparent discussions with suppliers, improving collaboration and long-term reliability.

-ACCELERATED DECISION-MAKING: Instantaneous analysis of risk factors for targeted and effective interventions

Our Approach

Needs assessment & data collection

Definition of critical risk indicators with procurement and supply chain teams
Consolidation of historical supplier performance data
Integration of external sources (market trends, geopolitical factors)

Model development & validation

Design of supervised learning model (random forest and gradient boosting)
Parameter optimisation and cross-validation to maximise precision
Implementation of explainable AI techniques (SHAP values) enabling clear visualisation of each factor's importance in risk scoring

Dashboard & visualisation

Creation of intuitive interface with Microsoft Power BI or Tableau for real-time risk score visualisation
Detailed analysis functionalities for high-risk suppliers
Automated alert system for significant risk profile changes

Pilot & deployment

Pilot phase with selected supplier group
Progressive deployment across multiple divisions
Seamless integration with existing processes

Governance & continuous improvement

Governance framework to evaluate model performance
Regular risk model updates
Comprehensive training and documentation for internal teams

Cutting-edge technological architecture

The solution developed by Talan integrates the finest data science and artificial intelligence technologies, ensuring performance, scalability, and explainability:

Predictive analytics platform combining advanced algorithms and multi-source data integration
Microsoft Power BI and Tableau visualisation interfaces offering interactive dashboards customisable to user requirements
Explainability algorithms (SHAP values) enabling precise understanding of why a supplier presents elevated risk
Scalable architecture supporting addition of new data sources and integration with existing systems

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