New Aravo SIM-based application helps global enterprises proactively reduce risk; leverages SaaS to reduce deployment and maintenance costs
SAN FRANCISCO, CA, May 07, 2009 – Aravo Solutions, the leading provider of on demand Supplier Information Management (SIM) software and services, today announced Aravo Risk, a comprehensive SaaS solution that provides a 360° approach to supplier risk management. Aravo Risk reduces the possibility of catastrophic supplier failures and supply disruptions, improves supplier performance management, and enhances supplier compliance initiatives. It is based on the flagship Aravo SIM application, which serves as the single source of truth for supplier information by centralizing and integrating multiple sources of data – from internal and external stakeholders, across disparate IT systems, and from third party data enrichment. The Aravo Risk application builds on that foundation by enabling users to measure customized risk metrics for each of their suppliers, to monitor risk indicators via automated alerts and an executive dashboard, and to mitigate supplier failure by triggering automated workflows that drive contingency planning.
Supplier risk management at a crossroads
Nearly 75 percent of enterprise risk managers say that their company’s supply chain risk levels have increased since 2005 (Marsh, Inc., “Stemming the Rising Tide of Supply Chain Risk, 2008). In addition, 71 percent of risk managers report that the financial impact of supply chain disruptions has increased dramatically. The typical supply manager estimates that just 25 percent of his or her company’s end-to-end supply chain is being assessed annually for risk threats.
“The recent combination of a volatile and down trending economy, the credit crunch, fluctuating raw material and energy costs, global labor challenges, new compliance requirements, political unrest in developing markets and global supplier quality concerns have really created a perfect supply risk storm for virtually all Global 2000 organizations,” said Jason Busch, Managing Director of Azul Partners and Editor of Spend Matters. “I’m pleased to see a new solution from Aravo that promises to address a number of elements within the supply risk equation, helping companies consider a range of supply risk challenges that start with supplier on-boarding, progress to monitoring targeted risk elements, and then kick off automated mitigation processes to help companies avert or minimize potentially disastrous situations.”
Aravo Risk – A 360° approach to managing supplier risk
Aravo Risk is the first SaaS solution that approaches supplier risk from the perspective of managing the complete supplier lifecycle. While other solutions offer only single components such as risk analysis, transactional compliance, or third party ratings, Aravo Risk combines all these components into a comprehensive solution that helps organizations centralize supplier risk management – from new supplier evaluation to everyday transactions. In addition, Aravo Risk manages risk mitigation efforts and supports corrective action planning by automating business continuity and contingency planning. Users can also combine internally generated supplier information with supplierreported data and a broad set of third party data validation and enrichment services, to provide a comprehensive 360° view of supplier risk.
Aravo Risk automates critical key business processes for managing supplier risk, including:
- Comprehensive risk evaluations and ratings
- Ongoing supplier financial viability/credit monitoring and reporting
- Automated business continuity and contingency planning
- Regulatory compliance (e.g., government watch lists, insurance certifications)
- Geopolitical risk management
Key product features include:
- Real-time, role based risk dashboards for continual analysis of suppliers across the extended enterprise;
- Risk management engine with a decision support system that continually monitors information sources and risk metrics;
- Risk-triggered notifications, surveys and workflows that drive automated mitigation processes; and
- Supplier Information Management Foundation: Aravo Risk is built on top of Aravo SIM, the company’s original SaaS offering that optimizes management and governance of suppliers by being the “single source of truth” for supplier information.
“Now more than ever, a company’s ongoing viability and survival depends on the financial health of direct and indirect suppliers,” said Tim Albinson, Aravo CEO. “Expanding our SIM offering to proactively manage supplier risk ensures that our customers can successfully track all dimensions of risk across the entire supplier ecosystem.”
The world’s best-run businesses utilize Aravo’s Cloud-based Supplier Lifecycle Management solutions and Supplier Risk Services to find and manage trading partner relationships, reduce supply chain risk, ensure global regulatory compliance and lower the cost of managing suppliers by up to 72%. Aravo launched the market’s first SIM/SLM solution in 2004 and has been the leading innovator in the space ever since. Customers such as General Electric, Accenture, and Boston University rely on Aravo to manage information and processes for over 2 million global suppliers. Aravo is based in San Francisco, with offices in Chicago, Dallas, New York, Portland, Monterrey, Mexico and Ahmedabad, India, and is backed by over $50 million in investment from Cisco Systems, Big Sky Partners, and others. For more information regarding Aravo’s award-winning solutions please visit our website at https://aravo.com.