Supplier Risk Management Advisory Services Help You Identify, Evaluate, and Control Supply Chain Threats
Don’t throw money down the drain. Gain better visibility into your supply chain operations with Source One’s supplier risk management advisory services.
As companies mature and increase their operational size and requirements, their supply chains become more complex and difficult to manage. Not matter how skilled your company is at managing suppliers, there is still no way to ‘outsource’ the risk that comes with such a heavily outsourced strategy. Companies cannot afford to operate under the belief that their suppliers have ultimately responsibility for ensuring quality, regulatory compliance, data security, etc. These concerns are especially prevalent when doing business in unfamiliar markets, where language, local politics, geographical concerns, and legal issues muddy the waters. Suppliers without adequate controls to ensure your ongoing regulatory compliance and data security while protecting against risk in their own operations can result in costly mistakes that negatively impact the business.
Protecting those supply chains from disruption, and thereby securing the bottom line, represents a constellation of activities that requires the right balance of expertise and resources. Supplier risk management calls for a variety of tools and techniques, not to mention a significant investment of time that most companies can’t muster. Source One’s supplier risk management experts know how to diagnose your organization and prescribe the right solutions. Through our comprehensive range of services, we create the framework for a risk management plan that identifies, measures, monitors, and controls supplier risk within your operations.
Our supplier risk management activities address a number of critical opportunities for your supplier relationship management program:
- Identify critical suppliers by category
- Identify deficiencies in internal and supplier processes
- Assess governance and oversight programs up the Board of Directors level
- Identify applicable laws and penalty exposure based on services outsourced
- Evaluate effectiveness of risk management and internal audit activities
- Create an objective view of risk related to contracted products and services in that category
- Define action steps that remedy inadequacies
- Create appropriate levels of stakeholder engagement and instill a “top-down” AND “bottom-up” risk management grid
- Establish new controls and policies to address risk
- Create repeatable mechanism for testing and improving risk assessment approach
Source One also has the expertise to recommend analytics-based solutions as another tool for supplier risk management. By leveraging predictive analytics, companies gain efficiencies and free up their own resources. Beyond simple spend analysis, Source One’s expertise in predictive analytics help companies cover a number of risk considerations, including:
- Low spend suppliers can be a source of significant risk as well if they operate a critical process or provide a critical component
- A poorly-constructed part or process can cause the entire engine or system to fail
- Data theft enabled by poor security practices at a small IT provider can cause irreparable reputation damage to a brand and/or lead to lawsuits
Source One’s risk management experts help you evaluate not only spend, but also number of products purchased, number of other suppliers for the same product, location of plants, supplier/part quality, supplier shipment performance, and many others as needed for your organization.
By taking a proactive approach in controlling supplier risk on a continuous basis, companies can guard against potential business disruptions and regulatory discrepancies to get the most value from their vendors. Contact Source One’s third party risk management experts today to get started with securing your bottom line.
Contact our Risk Management Team