Supply Chain Risk Analysis Engagement Overview
The industrial minerals manufacturing client wanted to proactively address the growing complexities of their global supply chain. To gauge the performance of their supply chain, the client approached SpendEdge to devise a comprehensive approach to supply chain risk analysis. A detailed quantitative analysis of the supply chain was carried out to accurately forecast production and inventory needs of the industrial minerals manufacturer.
With the help of this risk analysis engagement, the industrial minerals manufacturer redesigned their risk management system, uncovered risk factors, and included proactive risk mitigation strategies. The client also integrated risk prioritization as a core strategy in their current risk management system.
About the Client
A multinational company specializing in industrial minerals manufacturing based out of the US.
The industrial minerals manufacturing client was facing difficulties in gauging the risks and performances of their supply chain.
How did SpendEdge Help the Client?
Step 1: Developed a framework to gauge the impact each factor involved in the supply chain
This step involved the quantification of the supply chain activities and their contribution to the flow of materials both in physical and monetary terms. This helped the client to assess the importance of each factor impacting the overall performance of the supply chain.
Step 2: Mapped the supply chain activities
Identification of activities, resources, establishments, and regulatory requirements that are required to create a flowchart to obtain an overview of the supply chain activities. This step also offered insights into the flow of raw materials and products throughout the supply network.
Key questions answered in this supply chain risk analysis engagement include
Benefits of the Engagement
With the help of SpendEdge’s risk analysis solution, the industrial minerals manufacturing client analyzed every stage of their supply chain activity, starting from the acquisition and risks of supplies from the suppliers to the delivery of finished products to the end-user segments. The client also determined the impact of factors affecting the supply chain and delivered the finished products more quickly and efficiently to the end-users.
Why incorporate supply chain risk analysis solutions?
Supply chain risk analysis helps companies in the industrial minerals manufacturing space to identify the supply chain activities and processes that can be bypassed to reduce inventory costs and improve forecasts. Risk analysis also helps organizations to optimize their supply chain processes and minimize redundancy while assisting in the creation of enhanced value-added outputs.
Supply chain risk analysis incorporates a wide range of functions that may seem intimidating even to a well-established industrial minerals manufacturing firm. However, it can be effectively modeled by dividing them into several strategic areas. A robust supply chain risk analysis study that aims to regulate current real-world practices in supply chain risks indicates a radical take-off from conventional models.
Additionally, it is important for organizations to redefine their risk management strategies and implement a continuous approach to detect supply-side risks and prioritize them to drive business value.