Supplier Risk

Overview

Many companies struggle with how to assess, document, and monitor the inherent supplier risk within their supply chain. The major challenge is that a one size fits all approach does not work, making it complex to manage different requirements from suppliers across industries and geographies, in order to understand and manage the potential supplier risks in an effective and efficient way.

The risks that arise from the supply chain have different sources depending on the industry, country of origin and markets where companies buy their goods/services. The fact that there is no unique approach to tackle these issues makes this situation complex for purchasers, buyers and supply chain managers, who are left in the darkness in terms of supplier risk management control.

The Supplier Risk module is the first solution that enables companies to measure, monitor and mitigate supplier risk in real-time, providing up-front visibility into possible problems before they become disruptions. You can easily and quickly:

• Build a detailed supplier risk profile for each supplier, at the corporate level as well as the business unit level
• Have at your disposal a comprehensive supplier risk score and follow its development over time
• Bring visibility of supplier risks to the broader spend management community, in order to build an operational supplier risk prevention plan
• Have better prediction and control of supplier risks

How does it work?

A comprehensive risk score and a supplier risk profile are established using information from diverse sources (internal or external, automatically or manually captured), with the possibility of zooming in on various types of supplier risks (financial, sustainable development, products, etc.).

This is achieved by combining internally generated supplier information with supplier-reported data and a broad set of third party data validation and enrichment services, to enable you to have a multi-dimensional view of supplier risk comprehensively. It also automates risk mitigation efforts, corrective actions, business continuity, and contingency planning across the global enterprise.

Collection and consolidation of risk data

• Creation of supplier risk summary file
• Management of data collection required to assess the risk
• Automatic integration of data from external sources
• Content Partners: Dun & Bradstreet

Analysis and Summary

• Configuration of supplier risk types and measurement indicators
• Calculation of multidimensional risk evaluations
• Analysis of the development of supplier risk profiles over many years
• Creation of supplier risk summary reports
• Benchmarking of risk among suppliers

Key Features

• Configurable risk indicators
• Alert system with pre-determined triggers
• Automatically collected information from reference sources on the market
• Multidimensional supplier risk analyses (period, organization, purchasing segment, geographic zone, etc.)
• 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 enable automated mitigation processes
• Supplier Information Management Foundation: optimizes management and governance of suppliers by being the "single source of truth" for supplier information

HICX Value Add

We understand that a system is only as good as the business process defined. Our adivsory team can further support you in the business challenges which you may face:

• How can we determine the potential risk that suppliers pose to our organization?
• What criteria should we use to assess supplier risk?
• How do we know if our providers are in trouble and if they are still viable?
• How do we consistently measure supplier risk across the different segments of our business?
• How does our outsourcing strategy impact our exposure?
• How can we get more people involved in evaluating supplier risk?