The Supply Risk Management Category

Creating a Successful Third-Party Risk Management Strategy: What You Need to Know

risk

It’s almost 2018 and time to think about updating — or creating — your risk management program for next year. Financial health ratings firm RapidRatings recently held a webinar on the most important factors to consider as you plan your risk strategy. Presented by Brian Sica, director of sales operations at RapidRatings, “Developing a Third-Party Risk Management Strategy for 2018” takes a broad approach to the topic, starting with alignment to business objectives before progressing to the actual planning and execution of the program.

Commodity Price Risk Management: For the Many, Not the Few

Spend Matters welcomes this guest post from Tom Lawrence, director at Flow&Ebb. 

Commodity markets affect us all. Wild swings in commodity prices affect how much we pay for groceries, how much we pay for aluminum cans for our organic soda, how much we pay for electricity. Yet traditionally only large businesses had the budgets to pay for, and enough clout to embed, commodity price risk management into their supply management strategy.

What are Companies’ Biggest Risk Misconceptions? A Conversation with Coupa Economist Ahmad Sadeddin (Part 2)

As a senior economist and risk expert at Coupa, Ahmad Sadeddin is in a good position to see what companies do well and not so well in terms of risk management. Unfortunately, companies are being put to the test more frequently these days, as risks become more numerous and unpredictable. In this second half of our pre-webinar interview with Sadeddin, the risk expert discusses common risk-related misconceptions, challenges that Coupa’s clients have faced and one recent risk success story that impressed him.

Successes, Failures, Worries: Coupa Economist Ahmad Sadeddin on All Things Risk Related (Part 1)

Are companies paying more attention to risk as they become more sophisticated, or are risks so numerous nowadays that risk management has become a bigger priority? If news headlines are any indication, we are all in need of a few contingency plans. And if you — as a business or as an individual — don’t even know where to start, well, you’re not alone. From hurricanes and earthquakes to Brexit and the upcoming General Data Protection Regulation (GDPR), what is one supposed to look at first?

Determining the Avoidable and the Unavoidable in Supply Chain Risk

category management

Some supply chain risks are avoidable. For instance, it is feasible and highly advisable to avoid doing business with potential suppliers in certain countries (like North Korea) where doing so would bring all sorts of risk to fruition. But any supplier could suffer from an accidental factory fire. A hurricane or flooding could strike pretty much anywhere in the world, so this sort of risk is unavoidable. That does not mean, however, that we cannot take actions to manage that type of risk better.

A New Perspective for Procurement: Understanding RAP

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Although I can’t be sure if risk-aware procurement (RAP) can rightfully claim this year’s mantle for most popular new supply chain management (SCM) acronym, it should be a leading contender. Not that it’s about acronyms, or that building a procurement-led and more structured supplier relationship management (SRM) capability isn’t meaty enough on its own, but when you add in the sizzle of supplier risk management (SRM), well, let me put it this way: Chief procurement officers (CPOs) who “RAP” are embracing one of the more powerful hooks the profession has seen in more than a decade.

DHL Resilience360: A High-End Supply Risk Solution Hiding in a Logistics Services Provider (Part 2: Determining the Fit) [PRO]

The market for supply chain risk management solutions continues to grow. SAP Ariba is back in the game, after a market hiatus from SAP Supplier InfoNet, with a new solution. Incumbents such as riskmethods and Resilinc continue to build out their offerings, and eager adoption from a growing customer base in manufacturing and other sectors is driving one of the healthiest revenue CAGRs in the procurement sector, according to Spend Matters research.

Within this sector, DHL Resilience360 offers a compelling set of capabilities that span risk assessment, supply chain network visualization, incident monitoring and risk response. (See Part 1 of this analysis for a full overview.) The solution stands out for how it incorporate logistics components into broader aspects of supply chain risk management.

This second installment of our analysis introducing DHL Resilience360 explores what types of customers are the best fit for the solution. It also offers a checklist to help organizations assess the relevance of Resilience360 for their risk management initiatives. But first, this analysis begins by asking key questions in the context of organizational supply chain risk management maturity, readiness and priorities, including, “Who should use this solution and why?”

DHL’s Resilience360: A High-End Supply Risk Solution Hiding in a Logistics Service Provider (Part 1: Solution Overview) [PRO]

Global Risk Management Solutions

If your current lineup of risk management solution contenders fails to include a supply chain logistics services player (LSP), also known as a third-party logistics provider (3PL), you may want to consider a timeout. As the largest LSP in the world, with approximately 510,000 under its employ, Deutsche Post DHL Group has entered the solution space with a game-ready option that is worth a serious look.

If you have initial concerns about the “motivations” of a technology platform funded by a major physical supply chain participant; or the relevance of all of those supply chain operators; or how a company like DHL, which owns significant carrier assets, avoids conflicts of interest, well, you’re not alone. In fact, that pretty much describes the mindset we brought to our meeting with DHL’s Resilience360 product leadership.

In spite of these concerns, we came away extremely impressed. Resilience360 has functionality rivaling that of the market leaders (e.g., Resilinc and riskmethods).

DHL’s new solution suite offers a nice path forward, including a unique diagnostic approach that provides supply chain organizations a way to walk before they run full speed into a comprehensive supply risk application suite. For DHL, it’s a great way to move up the value stack as a more strategic supply chain services partner beyond core logistics execution, and it also takes advantage of the capabilities DHL has built in its core business, extending them to its customers. Such an approach is analogous to the classic IBM business model: “We’ve done that to ourselves very well and can do that for you as a service.” Of course, IBM might not be the shining example to hold up given its performance over the last few years, but let’s not let the data get in the way of a good metaphor.

In this two-part Spend Matters PRO analysis, we’ll dive under the covers and evaluate the capabilities of DHL’s multi-pronged solution and give some evaluation guidance on its capabilities relative to other options in the market.

Risk, Volatility and Uncertainty are the New Normal for Global Procurement

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Red alert: The end of tranquility is coming, and procurement needs to wake up to the existential risks threatening their organizations. That was the blunt message that Nik Gowing, former BBC broadcaster and a visiting professor at King’s College, used to kick off Procurious’ Big Ideas 2017 Summit in Chicago this morning. Increasing geopolitical instability and rapid technological disruptions are threatening businesses with unparalleled levels of risk and volatility. To survive, procurement will need to embrace new ways of thinking, from openness to social responsibility to broadening the time frames in which they operate.

Supply Chain and Procurement: Risk Management Strategy

Spend Matters welcomes this guest post from Maria Cecília Siqueira, of GEP.

Risk management has been discussed exhaustedly in every business forum in the last couple years. Yet in day-to-day operations, it may still be linked to its origins as a paper process restrained to the legal and compliance departments. Per EY studies, 82% of institutional investors would pay a premium price for effective risk management. Nevertheless, it would be safe to say that today risk management faces the “risk of apathy” with business managers.

Back in Coastal Georgia with the Evacuation Blues Again

Hurricane Matthew and Irma. Two evacuations in one year have proven more than enough for me (and I’m hearing there may be yet another one on the way). In both cases I lost more than a week of my life. Whether holed-up with friends hooked on reality TV or moving between cheap motels with my ill-mannered pets, it doesn’t make much difference: it’s a totally depressing scene that has moved me to action. I ain’t going nowhere next time, no how.

Risk Expert Gary Lynch Discusses Hurricane Irma and Supply Chain Insurance (Part 2)

Editor’s note: This is Part 2 in a two-part Q&A. Missed Part 1? Read it here.

The unusually strong and ongoing Atlantic hurricane season prompted us to take a good look at supply chain risk. To that end, we talked to Gary Lynch, founder of The Risk Project (and considered by our own chief research officer Pierre Mitchell as “the best supply risk guru in the world”). In this Part 2 of the Q&A, Lynch talks about different insurances that businesses can consider, which industries are likely to be most affected by Hurricane Irma and why risk can be an asset.