Identifying sustainability risks: Audi, Porsche and Volkswagen use Prewave to monitor their supply chain
Intelligent sustainability radar for the supply chain: the Porsche, Audi and Volkswagen brands are using Artificial Intelligence (AI) to identify sustainability risks such as environmental pollution, human rights abuses and corruption at an early stage – not only among direct business partners but also at the lower levels of their supply chain. The basis for this monitoring system is an intelligent algorithm developed by the Austrian start-up Prewave. The technology is capable of identifying and analysing supplier-related news from publicly available media and social networks in more than 50 languages and over 150 countries. If there is any indication of a sustainability risk in the supply chain, the brands are notified. Procurement then looks at the facts of the situation and considers initiating countermeasures. In this way, AI provides a proactive early warning system for breaches of the Volkswagen Group’s sustainability requirements. It therefore supplements traditional reactive complaint channels such as mailboxes and ombudspersons. Since the pilot project began in October 2020, the brands have analysed more than 5,000 keywords and are keeping an eye on over 4,000 suppliers.
Supply-chain sustainability is a business issue affecting an organisation’s supply chain or logistics network in terms of environmental, risk, and waste costs.