EC2 in Action. Orchestrating Enterprise Supply Risk Management

Background:

A major global OEM faced escalating supply chain instability across critical commodities, threatening production schedules and financial performance. Previous interventions were fragmented across multiple functions, with no single point of ownership or consistent risk signal. This lack of integration led to delayed escalation, inconsistent reporting, limited ability to stabilize distressed suppliers and lost production.

The OEM engaged Crossover Solutions (XO) to customize and implement its proprietary Enterprise Command & Control (EC2) Framework—a unified operating system to provide a single, authoritative supply signal and enable rapid, coordinated interventions across operations, finance, purchasing, logistics, and supplier support.

Critical Issues:

• No clear ownership or accountability for supplier risk management
• Redundant functional structures causing delays in escalation and response
• Inconsistent risk reporting and forecasting across sites and functions, impairing production planning
• Limited on-site stabilization capability for distressed suppliers
• Need to build a team within the organization to apply EC2 and mobilize effective Supplier Response Teams.

Our Approach:

XO designed and deployed a multi-layered EC2 operating model to restore governance, visibility, and execution speed across the enterprise:

• Executive Integration: XO senior leaders embedded with OEM executives to steer execution, align priorities, and ensure accountability.
• Control Tower Backbone: Application of standardized XO processes, workflows, and escalation protocols defining clear functional ownership.
• Case Management System: Structured approach for risk identification, on-site assessments, sufficiency planning, and follow-through.
• Supply Signal Reporting: Implementation of a single, consistent reporting output capturing status, risk to forecast, and sufficiency plans.
• Organizational Transition: XO interim leaders filled key operational roles while the OEM accelerated internal hiring through XO-vetted candidates.
• Cost Avoidance Framework: Defined governance for deploying internal and external resources rapidly, preventing delay and unnecessary spend.

Execution Highlights

• Delivered manuals, work instructions, and training modules to institutionalize the customized EC2 operating system for this OEM usage.
• Established daily and weekly risk communication routines to drive visibility and alignment
• Implemented risk categorization, glidepaths, and structured response protocols to ensure consistent case management
• Streamlined cross-functional coordination, eliminating overlaps and reducing response time
• Supported critical supplier cases through rapid on-site assessment, sufficiency planning, and targeted recovery actions

Results:

• $650M cost avoidance realized in the first six months through proactive risk intervention
• Restored supply signal integrity across all manufacturing sites, preventing forecasted lost production value
• Embedded a “no lost units” mandate through clear escalation and sufficiency planning discipline
• Established enterprise confidence in XO’s EC2 as the single point of truth for supply chain risk
• Built the foundation for a best-in-class Command & Control Model within twelve months, with XO ensuring continuity through transition

Impact:

This customized Enterprise Command & Control (EC2) project transformed the OEM’s ability to manage supply chain risk. What began as a fragmented, reactive process evolved into a disciplined, enterprise-wide operating system with visibility, governance, and speed. The OEM now possesses the structure, tools, and leadership to protect production, minimize disruption, and strengthen supplier collaboration—turning supply risk management into a competitive advantage.