How To Integrate Real-Time Supplier Risk Insight Into Your Procurement Processes

Perhaps the biggest change in procurement focus in my time in the profession has been the increased focus on risk management.

Awareness of risk was always there, of course. Indeed, in my first job in the function, I was the buyer for a single-sourced raw material, which had been a critical ingredient for one of the biggest confectionery products in the UK for the previous 40 years or more.

Plenty of risk there, from commercial risk (supplier exploitation of their monopoly position), to worries about what would happen if a jumbo jet fell on our supplier’s factory, which was only a few miles from Heathrow. In that case, as they were only a couple of miles away from our factory, the answer was that we would probably have our own problems to worry about if that disaster occurred.

So risk was on my agenda back in those days, but in recent years, procurement and supply chain professionals have become more structured and professional in their thinking on the topic, which is just as well given the new risks that have emerged from the increasingly global business world. And we weren’t worrying too much about cyber-attacks on our key suppliers (or indeed on our own business) back in the 1980s, I can honestly say!

However, most organisations can and should still do more to put in place effective supply chain risk management processes, tools and approaches. Too often, the approach is still reactive, unstructured and incomplete. To help address that, on October 31st at 10 am UK time, in conjunction with SAP Ariba,  we’ve got a webinar to look at “Integrating Supplier Risk Management into Your Procurement Processes

Our proposition is that organisations need to look at risk at every stage of the end-to-end procurement lifecycle – starting way back, even in product design, through category strategies, sourcing and contracting to ongoing contract and supplier management. And it is not just manufacturing and worries about single-source raw materials, failure of deliveries and factory shut-downs these days of course – risk areas such as data (GDPR) and reputational risk can apply to any organisation.

So, on the 31st, we’ll talk about these issues, and give you a guide to risk at each stage of the procurement process. I'll be joined by Tony Harris, SAP Ariba GM for Supplier Management Solutions (basically, the firm’s risk guru) and Bernard Stoit from the firm, another solution expert in this field, who will guide us through a quick look at the Ariba Supplier Risk product.

The firm has focused strongly on risk over the past couple of years, as you will see, and has made some big strides in the capability of their product.

You can register here, free of charge of course, and hope you can join us on the 31st.

My first story had a happy ending, by the way – while I was the buyer, our brilliant research scientists, working with another potential supplier, finally got an alternative material that worked – and the future of M**t***rs was secured!

 

 

 

First Voice

  1. Saravanan E:

    To understand how Supplier Risk indeed helps in procurement.

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