Supplier management enabled by risk intelligence

Supplier management enabled by risk intelligence

Ted Datta

Strategic Account Director BvD UK & Ireland

What is supplier management?

“The commercial business discipline that involves the pro-active, holistic,

management, and monitoring, of suppliers and partners, with the primary goal

of optimising efficiency and competiveness, whilst mitigating risk.”

360 Supplier View

What is risk? “The effect of uncertainty on objectives”

How many European companies placed into receivership in the

last two weeks?

- 30,719

- 11,260 - manufacturing, construction, logistics or telecoms

- 520 > 50 employees

Supplier risk management in practice

“Nearly half of senior executives say their supply chain management

programmes are insufficient or ineffective”

Deloitte, Feb 2013

1. Financial risk

2. Reputational risk

3. Integrating risk into supplier management

Risk: If I do this is it going to hurt?

Supply chains are vital to business performance...

...and they’re becoming increasingly complex

So where do I go to assess supplier risk?

Data from the right provider can help…

Hallmarks of good external content providers...

- Global perspective

- Reliability, quality and variety of content

- Easy to interpret

- Innovative, intuitive technology

Hallmarks of successful procurement teams…

Agile

StrategicInquisitive

Collaborative

The world changed and it’s still changing….

1. Financial risk: traditionally boiled down to…

1. Lets take a wider view…

1. And lets focus on financial strength...

1. If we view the same supplier…

John Doyle Construction

1. Detailed insight into long-term financial stability

2. Reputational risk: Know Your Supplier/Partner

2. Who am I actually buying from?

2. And who’s actually behind that company?

3. Integrating risk into supplier management

3. Take control of your supplier data

Internal data

External data

Common identifier

3. Make it part of your segmentation strategy

3. Understand where it can add value?

3. Enhanced evaluation and on-boarding capability

3. Source and benchmark alternatives

3. Deliver risk management updates to your senior leadership team

3. Take the lead on corporate & social responsibility reporting

SME

Adverse Press

Environmental Risk

3. Leverage your corporate spending power

3. Understand your impact on supplier health

3. Dashboard environment to monitor risk intelligence on your strategic suppliers

Best practice supplier management - employs risk intelligence to:

1. Conduct robust selection, evaluation and on-boarding of key suppliers

2. Monitor, and report on, the financial health of all strategic partners

3. Mitigate reputational risk by knowing who your suppliers are

4. Capitalise on opportunities to leverage corporate spending power

5. Shape on-going business planning and relationship management strategy

Stand 12