Supply Chain Risk Analysis to Increase Risk Management Maturity by Addressing Risks Proactively – A SpendEdge Case Study for a Biotech Company
Engagement Overview: The client wanted to enhance production and delivery capabilities across their supply network. To proactively address risks in their supply chain, a biotech company approached SpendEdge to devise a comprehensive approach to risk management throughout their global supply chains. The three-step methodology included – identification, analysis, and risk management. A detailed quantitative analysis […]
The client wanted to enhance production and delivery capabilities across their supply network. To proactively address risks in their supply chain, a biotech company approached SpendEdge to devise a comprehensive approach to risk management throughout their global supply chains. The three-step methodology included – identification, analysis, and risk management.
A detailed quantitative analysis of supply chain risks was carried out to identify, assess, and prioritize each risk factor based on their impact. Supply chain risk analysis enabled the client to integrate risk prioritization as a core strategy in their current risk management system. Following this, the biotech company redesigned their risk management system to leverage and include proactive risk mitigation strategies.
About the Client:
A multinational biotech company specializing in the manufacturing of biopharmaceuticals. The client is a leading player in the biotech industry with several well-established subsidiaries operating in over 30 developed economies.
The biotech industry player was facing difficulties in enhancing their risk management capabilities.
How did SpendEdge Help the Client:
- Step 1: Developed a three-step methodology to strategically address the burgeoning nature of supply chain risks
Our supply chain analytics experts followed a structured approach to develop a precise risk assessment framework.
- Step 2: Enhanced risk identification capabilities
Overcoming the rigidity caused by an inflexible supply chain and regulatory requirements, which required the incorporation of significant changes in risk identification, analysis, and risk management.
- Step 3: Devised a unique risk mitigation procedure to reduce supply-side risks
The risk management strategies had to be redefined owing to the dynamic nature of supply chain risks and their significant impact on supply chain visibility, efficiency, and operations. Proactive risk management also requires a combination of measures – including changes to the organizational structure, risk management strategies, and the use of advanced supply chain risk analysis.
Benefits of the Engagement:
Our supply chain risk analysis solution helped the biotech firm to diversify their sourcing strategies and minimize the risk of catastrophic supply chain failure. It also enabled them to establish backup arrangements by qualifying additional suppliers.
Supply chain risk analysis offers greater visibility of supply chain processes by establishing a cohesive relationship between all tiers of the supply chain. A holistic risk analysis approach can help account for changes in process design, organizational operations, and data governance to address market trends including specialization, globalization, and regional demands.
Why incorporate risk analysis?
To deal with the shortcomings of traditional supply chain management systems, companies are now recognizing the need to incorporate risk analysis to identify and assess supply-side risks. Moreover, with sophisticated technologies now being available easily at the desktop level, supply chain risk managers are now in an ideal position to bring in a cultural transformation towards adopting and implementing risk analysis as an integral part of business operations.
Key questions answered in this supply chain risk analysis study include:
A supply chain risk analysis model that aims to determine current real-world practices in supply chain risks implies a radical takeoff from conventional risk models. It expects organizations to redefine their risk management strategies and adopt a continuous risk assessment approach to detect supply-side risks, classify risks, and prioritize them to drive business value.
Discovering and employing a precise risk management strategy is the next big step towards accomplishing organizational goals. Moreover, supply chain risk analysis is a process, which not only emphasizes on the shortcomings in various segments of the supply network but also between the supply chain and the end-users. However, with supply chain risks becoming more complex and risk occurrence proving to be costlier, the importance of risk analysis will continue to increase.
To know more about our supply chain risk analysis engagement