As most organizations are aware, supplier risk is abound and comes in many forms. To reduce exposure to risk, organizations must establish key alert and notification mechanisms for gaining deeper insights and improving their ability to react when incidents occur.
Key studies indicate that going beyond the tracking of key suppliers helps reduce the incidence of supplier failure and improves performance of suppliers through the ability of weeding out suppliers that pose the highest risk to the organization. Mitigating supplier risk is in understanding how to bring the right information into the fold.
Financial Risk Alerts
Monitoring financial risk alerts can bring great value to the supplier management process by providing independent risk ratings, information on both public and privately held organizations as well as potential company downgrading of financial health to compliment existing supplier performance and risk initiatives within your enterprise.
HICX can help you complete your supplier risk profiles by:
- Collecting financial risk based news for a supplier segment
- Collect risk alerts based on financial news for key suppliers
- Establish a better starting point for corrective risk actions
- Provide additional insight to performance and risk related to efforts
- Append financial risk information to supplier profiles
Global Incident Tracking
Improving insights into supplier risk can have a considerable impact on the ability to react to incidents that have a direct impact on global supply chains. With the use if global incident tracking, organizations are more prepared to automate the crisis management process and gain a competitive advantage from an incident causing widespread disruption on an industry or region.
HICX can help you improve visibility into supplier risk by providing:
- Global views of where incidents are occurring
- Map drill-down of where suppliers are clustered related to an incident
- Drill down into news events and source of the incident
- Real-time tracking of global natural disasters, geo-political /social unrest
Bankruptcies, Judgments and Liens
Information for bankruptcies can include: subjects address, filing number and date, court location, attorney, amount and type of bankruptcy. Lien Information can include: debtor name, address and Social Security Number, file number and date, where it was filed, amount and document type. Information on judgments can include: defendant name and address, plaintiff name, filing and disposition date, amount of judgment, court location and type of filing.
HICX can help you reduce supplier risk through enhancing your supplier profiles:
- Identify negative filing events relevant to your most critical suppliers
- Reduce the potential of reputational risk through supplier affiliation
- Get a deeper understanding of supplier and affiliated executives
- Enhance financial risk mitigation efforts
Your organization must concern itself with:
- Harmonizing global, regional, local, and business unit performance needs
- Overcoming metrics that do not support or align with organizational business goals
- Enabling power oversight and segregation of duties
- Leveraging intelligent workflows to ensure proper involvement and notification
Risk cannot be managed in a silo – and, unless there is only a single stakeholder, neither can performance. The best scorecards factor in senior management goals and objectives as well as working with suppliers on the frontlines. HICX scorecards are not limited by the technology surrounding them and offer the ability to quickly incorporate all stakeholders’ needs, without waiting for a consensus on those needs.
Today’s performance scorecards have moved beyond tracking a mix of discrete data elements and capitalize on both quantitative and qualitative information, with inputs from internal and external systems and individuals. They offer workflow and routing to information gathering from the right sources. Such an approach shifts the burden from procurement to stakeholders to ensure proper segregation of duties, while escalating issues as they arise.
HICX Supplier Risk Management services creates a more complete supplier profile to -
- Leverage all internal sources of supplier information
- Build rick metrics around your business goals, which include a variety of data sources such as supplier provided information, internally provided information, third-party information, and financial calculations
- Establish an automated, dynamic, and flexible scoring process to evaluate suppliers
- Segregate risk roles based on approvals
- Drill into risk scorecards based on organizational unit, region, business unit, or other – with the ability to slice and dice and/or “roll up” while maintaining integrity
- Quickly assess scorecards through Key Performance indicators
- Identify good or bad performance, for awarding or redirecting business
- Uncover hidden cost drivers, risk, performance opportunities, and additional business values that your supplier can offer
- Share information with internal stakeholders to stay in front of risk
- Exchange information and collaborate with your suppliers so that you can drive a mitigation plan and/or efficiency manage supplier development
Examples of our Supplier Risk Alerting:
- Stay on-top of financial earnings risks through email alerts
- Establish deeper insight into the root causes of supplier failure
- Leverage information for executing performance and risk plans
- View incidents as they occur real-time
- Drill down into each supplier clustering
- Understand proximity of and nature of the incident(s)
- View latest records of filed bankruptcies, judgment and liens
- Keep track of corporate entities involved in the filings
- Collect information filing activity by filing number, location and state
Featured Case Studies
A large global consulting firm, with 14,000 suppliers spread across the globe, struggled with redundancy of efforts, lack of onboarding compliance, and an inability to streamline supplier risk assessments. With HICX Solutions they were able to streamline the onboarding process globally, identify risk segmentation upon supplier enablement, and automate the risk process. By automating their processes, they improved their onboarding compliance, gained risk visibility, and recovered over $2,500,000 in soft-dollar savings annually.
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A large Asian hi-tech manufacturer, with an average of 10 direct supply chain disruptions per year, struggled with gaining visibility into supply chain risk. With HICX Solutions they were able automate the scorecarding of critical suppliers and ensure risk mitigation plans were enacted upon early detection of potential risk. By gaining visibility into their critical risk areas, they were able to reduce supply disruptions by an estimated 60%, saving over $600,000 in supply chain disruption costs and potential revenue loss.
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