In recent years, the rate of supplier decline among marginal vendors has increased dramatically, introducing the potential for supply disruptions, let alone increasing other direct costs (e.g., qualifying new vendors). Even if a supplier that shuts its doors or runs out of operating capital is multiple levels down the supply chain, disruptions cascade throughout.
To combat this challenge, organizations are mobilizing to gain visibility into supplier risk, implementing risk mitigation plans and processes. Further, as new regulations are continually introduced, buying organizations are finding that their risk exposure on a supplier extends beyond financial viability to issues such as RoHS/REACH, conflict minerals.
By having a supplier performance management program, many organizations expect to get ahead of potential supply disruptions and costs associated with poor performance.
For many, though, these programs are difficult to initiate, as their current systems cannot support the integrations, surveys, processes, and collaboration that successful supplier risk and performance management necessitates.
HICX understands the need to gain further visibility into supplier risk and performance through efficient supply base management. Please read more about the following solution:
- Risk & Performance Scorecarding – Mitigate supplier risk and gain insights into supplier performance across your supply chain