In today’s highly inter-connected and inter-dependent global economy, seemingly small events can quickly reverberate widely and with significant adverse impacts. For example, a fire destroys a production facility in Taiwan that manufactures a component used in all sorts of electronic devices. Overnight, the price for that component increases by 20%. While some major companies can absorb the increases, the impact on smaller companies is immediate and severe.
The potential for such disruptions also is compounded by the fact that supply chains are only getting longer and more complex. As a result; it’s getting harder and harder for many companies to stay abreast of the dense webs of primary, secondary and tertiary suppliers they rely on. That’s why supply chain risk assessments using the latest methods and tools are increasingly essential.
We conduct a supplier risk assessment that follows three different steps, with methodologies depending on the level of the analysis.
Level 1: Supplier risk indexing
This is a preliminary supplier assessment, using information already available. The main objective is to rank suppliers in terms of their relative priority considering, for instance, their position within the value chain, the availability of alternative suppliers or substitutes and related factors.
Level 2: Supplier screening
Here, suppliers are assessed based on information collected using IT-driven checklists that incorporate ad-hoc criteria specific to the project. Dedicated algorithms then analyze the data and calculate a supplier rating.
Level 3: Supplier audit
Based on the findings from the previous phases, targeted loss prevention audits of selected suppliers are carried-out to:
Based on our analysis, you get a global view of the risks relating to your supply chain, with an estimate of the financial impact of potential losses.
To help you mitigate supply chain risks, we adopt an integrated approach that takes your specific requirements into account and is tailored to different portfolio sizes, available resources and time constraints.