Last Friday, Spend Matters Founder Jason Busch and Chief Research Officer Pierre Mitchell teamed up to present the webinar Risk and Compliance Management: Embedding Risk Management in Procurement and Supply Chain. Busch and Mitchell began with a segmentation of the types of supplier and supply chain risk and compliance management technologies out there, before moving into the topics of how to embed these technologies throughout your procurement and supply chain functions. They discussed the best ways to create linkages with other areas of procurement technologies, as well as how to create a procurement culture that is risk-aware.
The Supply Risk Management Category
While the area of supply risk management is attracting growing interest and investment from procurement organizations, organizations typically deal with risk on a piece-part basis. That is exactly the wrong strategy, argue Spend Matters analysts Jason Busch, Pierre Mitchell and Michael Lamoureux in their latest report, Spend Matters Landscape Definition and Overview: Supply Risk Management and Compliance. One of their core aims in publishing this analysis, they write, is “to change this perspective and help organizations integrate these supply risk management initiatives more effectively.”
These days, the issue of cyberattacks features pretty prominently in public discourse, at least in the U.S. We speculate endlessly on whether Russia had interfered in the American presidential election. Why did C-SPAN suddenly start broadcasting RT? But this is all a long way of saying that cyberattacks are a hot topic. And it should be part of a company’s risk management agenda.
Join Jason Busch (founder and head of strategy at Spend Matters) and Pierre Mitchell (chief research officer) tomorrow at 12 p.m. Central for The Supply Chain Devil's Dozen: Top 12 Supplier Risks for 2017.
What does 2017 have in store for your organization? When it comes to supply chain and supplier risks, Spend Matters analysts believe you have 12 areas to focus on for the year ahead.
How can you shift your investments and strategies to account for major global changes? How do you "map" these risks to their underlying causes and to the causes of different types of risk?
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While our fearless leaders are forging ahead on a new way to think about quadrants / 2x2s / matrices / [insert consulting-term du jour here] to help procurement practitioners make better decisions in real time — more on that initiative very soon — we figured we’d point to a classic 2x2-style look that the World Economic Forum takes on global risk in 2017, from its recent report. Hint: there's a lot of green.
The issue of forced labor is incredibly serious business when it comes to major supply chain risks. Not only that, it is also incredibly widespread and pervasive, covering myriad industries from clothing to mining, fishing to farming, and many in between. Awareness exploded onto the global scene with the Thai fishing scandal back in 2014. At the time, Spend Matters Founder Jason Busch wrote, “it seems every quarter there’s a new supply chain crisis involving supplier practices and labor management capturing the attention of consumers.” On this year's National Human Trafficking Awareness Day, here's some food for thought for procurement practitioners looking to get more visibility into slavery in their supply chains.
This post is part of our 2016 Year-End Procurement Tech Review series, in which we offer procurement practitioners a bird’s-eye view of key vendors and their solutions in select categories. This week, we’re highlighting companies in the risk management and spend analytics spaces.
Riskmethods, which Spend Matters estimates is the fastest-growing supply chain risk management provider, is more than just a cloud-based provider of supply chain risk management software. It is a new type of supply chain intelligence utility. While the provider is still too small to have a solution that is “going viral,” its growth rate is significant relative to all other vendors in the sector and also a bright spot on the broader procurement and supply chain technology market.
Only two weeks to go until our webinar with riskmethods. The supply chain risk management provider’s software identifies risk along global supply chains, assesses the risk impact and defines appropriate and focused measures for risk prevention or crisis mitigation. The firm is the perfect partner for our upcoming webinar, titled “Keep your enterprise out of the rough: How Titleist built transparency and increased resilience into their supply chain.”
riskmethods, which Spend Matters estimates is the fastest-growing supply chain risk management provider based on customer acquisition and year-over-year percentage revenue growth as of Q3 2016, is more than just a cloud-based provider of supply chain risk management software. It is a new type of supply chain intelligence utility. riskmethods combines risk management application functionality (i.e., management of risk types, monitoring, recovery workflows, etc.), a graphical cockpit, aggregated/curated market intelligence, machine learning algorithms (e.g., to reduce occurrences of false positives), human flagging/reviews/scoring, and guidance/recommendations. It is sort of the equivalent of a Bloomberg terminal for managing a risk portfolio in the supply chain – as opposed to managing a stock portfolio in the financial markets. While the provider is still too small to have a solution that is “going viral,” given its limited sales and marketing footprint to date, its growth gives it a unique position in the market. This Spend Matters Plus analysis provides an introduction to the riskmethods solution for procurement organizations looking to understand whether they should consider adding the provider to their shortlists for consideration and competitive alternatives.
There is no single market segment for supply chain and supplier risk management solutions. Both the sector (providers) and use cases (for practitioners) are varied based on approach, specialty, industry requirements, capabilities, embedded market intelligence and roles. riskmethods is a provider that combines elements of application (cloud-based) supply chain visibility and supplier risk monitoring, planning and remediation software. It then adds aggregated information sources, both machine (AI) and human-based analysis and intelligence to mine and prioritize “events” and an evolving network-based connectivity/visibility model to further connectedness and value for different tiers of participants. But what is riskmethods? Is it software like SAP? Is it a data service like D&B? Is it a network like Ariba? It’s something much different, in fact, where the sum of the parts can add up to much more than the individual contributing elements. This final installment of our multipart Spend Matters PRO Vendor Snapshot series covering riskmethods offers a competitive analysis and comparison with other procurement technology providers (suite and otherwise). It also includes a user selection guide, user interface and user experience (UI/UX) analysis and summary evaluation and selection considerations. Part 1 and Part 2 of this PRO research series provide a company and deep-dive solution overview, a SWOT analysis, product strengths and weaknesses and a recommended fit analysis for what types of organizations should consider riskmethods.
Supply risk is almost always at the top of the CPO agenda (and if it’s not, it should be). Most organizations focus on supplier risk elements that are relatively easy to implement, such as supplier financial risk management, which is a good start. It essentially helps monitor supplier viability through the lens of the financial statements (assuming you can get them from your private suppliers too). But, supplier financial risk management only goes so far. It does provide an "assurance of supplier,” but it doesn’t necessarily protect your assurance of supply from that supplier. We have a handy diagram that illustrates this concept.
riskmethods is particularly strong at supply chain threat assessment (and includes capabilities designed to minimize false positives and avoid false negatives) and the provider has increasingly been building out capabilities to help organizations assess impact and take action to mitigate and manage risk elements in manufacturing supply chains. Procurement organizations have been the primary customers of the solution to date. Secondary users include operations/supply chain, corporate social responsibility (CSR) and insurance departments within organizations. Customers using riskmethods can start benefiting from the solution within days of signing an agreement with the provider (although it becomes increasingly more valuable the more users interact with it and configure/upload more granular information). This Spend Matters PRO vendor snapshot explores riskmethods’ strengths and weaknesses in supply chain risk management area, providing facts and expert analysis to help procurement organizations decide if they should shortlist the vendor as a potential provider. Part 1 of our analysis contained a company and detailed solution overview and a SWOT analysis, as well as a summary recommended fit suggestion for what types of organizations should consider riskmethods. The remaining parts of this multipart series will offer a user selection guide, user interface (UI/UX) analysis, competitive alternatives and evaluation and selection considerations.