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Supply Risk Management – Segmenting the Technology and Content Landscape and Choosing the Right Category of Solutions

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We know that for many procurement, supply chain and finance professionals, the supply risk landscape looks awfully confusing. Software providers want to sell tools; content providers want to sell data; people want to advise or consult; insurance companies will now underwrite named sources of supply and facilities. Still further, many promise various combinations of all of the above. In short, it’s a market bazaar, even for the initiated.

Using the solutions we profile in the this Spend Matters Compass analysis, the types of supply risk that companies typically try to proactively identify, mitigate and manage include:

  • Supplier financial viability (and related operational viability) due to bankruptcy, declining balance sheet health, ability to meet obligations in a timely manner, etc.
  • Supplier quality and performance risk (related or unrelated to supplier financial viability). Metrics for consideration often include: on-time performance, SLA adherence, escapes, PPM, etc.
  • Brand and reputation risk based on supplier contract and related compliance activities (e.g., ingredient/part traceability)
  • Regulatory and related non-compliance issues including watch lists, environmental and regional requirements (often examined on a per-country basis) including government control lists, debarment, etc.

Given the plethora of choice when it comes to supply risk platform options – let alone getting down to specific vendors – we often observe that companies become confused when it comes to what to choose. This Spend Matters Compass Series offers frameworks to help sourcing professionals to better examine which categories of provider (e.g., supplier information management/supply base management, spend analysis, etc.) are best suited to tackling the above areas and how best to apply the deploy solutions to their needs. It also discusses many of the providers in different areas of the market that one may wish to consider and be aware of.