With supply chain disruptions hitting an all-time high in 2018, every progressive organization today must have strategies in place to ensure that its supply chain remains safe and sustainable. The urgency regarding this is evident from the rapidly evolving role of the chief procurement officer, whose top three priorities now include managing risks.

Periodic supplier risk assessment reports on your critical/ material suppliers can allow procurement heads to be confident about their supply chain. Here are the three benefits that chief procurement officers can get from these reports:

• ‘Early warning signals’ about the risk exposure of these suppliers
• ‘Talking points’ with their suppliers, by uncovering areas where they need to engage their suppliers.
• Closer view of the supplier’s strategy to uncover new areas where the supplier can help you achieve your business strategy. This proactive decision making can help you save new supplier identification effort in many cases.

Most companies today conduct a financial risk assessment of their suppliers at the time of onboarding, if not periodically. However, that is clearly not sufficient, because the financial risk is often a result of the company’s inability to respond to industry trends or ignoring areas that impact its long-term sustainability.  Therefore, we believe that for critical/ material suppliers a periodic 360-degree risk analysis is a must. We try to assess each supplier’s performance in the following areas. In order to see the real value of our supplier risk assessment reports, please fill the form on this page to request a sample report.