SIG Dispatch: The Supply Chain Risk Decade, Segmenting the Market and a Lunch Panel

I’m speaking on a lunch panel today at the SIG Global Executive Summit on supplier and supply chain risk management — a topic I first co-wrote a paper on over 10 years ago when I was at FreeMarkets (it’s dated, but drop a line if you’d like to see it). At SIG this fall, risk is all over the agenda, including a dedicated breakout track, covering all facets of the “four-letter word” (the clever description of a session on the topic at the event), from regulatory compliance to supplier business practices to supply chain disruption.

As an aside, the outstanding keynote this morning by Theresa Payton, former White House CIO and cybersecurity expert, was completely disturbing and served as a wakeup call about the order-of-magnitude shift in this risk area in the past 12-18 months.

My, how times have changed since risk first came into procurement vogue. In the early 2000s, companies, at best, systematically monitored supplier financial stability for their top vendors using an Altman-Z score, D&B Supplier Evaluation Risk score or other related metric. That was a long time ago! “The Red” topped the pop charts, Commerce One was still selling e-procurement software and OpenRatings (remember them?) was still just an early stage idea (if that), years before D&B acquired it. Today, it seemingly has disappeared within the D&B juggernaut. Sad.

Flash-forward just over a decade and it’s an entirely different landscape. Here at Spend Matters, we’ve segmented the supplier and supply chain risk market into numerous sub-sectors. Without even mentioning the entire list, various sectors include:

  • Supplier certification and compliance (including regulatory compliance)
  • Supplier performance and compliance management
  • Supply chain risk modeling, assessment, mitigation and recovery
  • Supplier risk monitoring (via “intelligence”) against risk types by supplier
  • Supplier and product supply chain risk monitoring (via “intelligence”) against risk types by part/SKU/bill of material (cascading, multi-tier)
  • Supplier and product supply chain risk monitoring based on facility, site, intermediary points, logistics, etc.
  • Supply chain sustainability monitoring inclusive of greenhouse gas modeling, hazardous materials compliance, environmental/health/safety (EHS), etc.
  • Commodity risk management
  • Certification management and credentialing

And that’s just a start! Contract management, supply chain planning, supply chain security/monitoring/prevention, cyber, insurance and related areas are all now part of the supplier and supply chain risk management market — and present various areas of collaboration both internally and with third-party content, software, network, and aggregation providers that can help.

There are also other core sectors that I don’t have time to get into in this dispatch.

I’ll share some high-level thoughts on the topic today during my lunch panel — and what companies can do to get started. Finally, I’m also curious about the future intersection of services procurement and risk —  a topic that gets short shrift today compared with product/manufacturing supply chains — and would invite folks to get in touch with us on that if they want to trade ideas.

Stay tuned for additional coverage today from SIG!

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