The last few years have tested many procurement organisations to their absolute limit. The increasing scale of tightening credit conditions and a worldwide Pandemic have introduced unprecedented levels of risk and uncertainty in the supply chain.
Do you currently have a policy available to help category managers understand what level of risk planning should be involved for each supplier?
If there is a policy, is it sufficiently detailed to account for different use cases across categories, for both new and existing suppliers?
Relying on codes of conduct and ethics statements are no longer sufficient to guarantee against reputational risk – as we saw with the BooHoo supply chain meltdown after modern slavery claims against the online retailer.
Consumers and end-users will not draw the distinction between you and your supplier in the event of failure.
"60% of risk management data is completely siloed, forcing senior leaders in major enterprises to make strategic decisions with an incomplete picture of risk"
- Dun and Bradstreet, 2018 Global Risk Management Study
With the right tools in place, managing suppliers becomes a streamlined, proactive process where risk can be monitored in real-time.
Furthermore, supplier audits can be crowdsourced for a true picture across an organisation, and sustainability can be visualised for an at-a-glance assessment of how a company is performing against ethical targets.