Risk Assessment for a Leading Food Processing Industry Player
A leading player in the food processing industry was looking at devising effective supply chain risk management strategies. Their inefficient procurement strategies had greatly impacted their bottom line as a result of which they wanted to implement a detailed risk assessment process to gain a competitive advantage.
SpendEdge was approached by the food processing client to leverage its expertise in risk assessment and develop an accurate strategy to mitigate risks in procurement. The supply chain risk assessment engagement entailed a quantitative analysis of various supply chain categories to enhance the risk management process.
The client is a well-established food processing firm with business units and operations spread across Europe.
The food processing company was facing several challenges owing to their inefficient supply chain risk management strategies.
How did SpendEdge Help the Client?
- Step 1: Identify the risk factors
The initial step revolves around the identification and estimation of the impact of supply chain risks on business operations. Risks in the supply chain of food processing companies can deter them from achieving their business goals. Hence, an effective risk assessment process plays a key role in helping them achieve their organizational goals. Also, by doing so, food processing companies can classify risks based on the severity of their impact.
- Step 2: Evaluate the risks and devise effective control measures
Any risk assessment process deals with three types of resources namely – people, business functions, and technology. However, identifying the hazards and employing effective control measures can go a long way in helping food processing companies prevent their future occurrence to avoid catastrophes. Also, it’s imperative to establish a risk assessment process that is dedicated to continuously gathering, interpreting, and acting on the gathered data.
- Step 3: Review the risk assessment process and make necessary changes
To select an effective supply chain risk assessment process, it is essential to analyze the gathered data to identify potential risks and develop strategies to avoid major losses. The devised risk assessment process played a major role in enhancing the procurement capabilities of the client.
Key questions answered in this supply chain risk assessment engagement include:
Benefits of the Engagement:
The risk assessment experts at SpendEdge devised a three-step holistic approach that helped the food processing company to devise a precise risk assessment process top tackle their supply chain challenges.
Importance of Risk Assessment for Food Processing Companies
A major concern for food processing companies revolves around effective supply chain management (SCM). But many are unaware of the fact that the key to an effective supply chain management system lies in its ability to detect and prevent risks. Hence, leading food processing companies are focusing on leveraging the efficiency of the deployed risk assessment process to overcome supply chain failures.
Our supply chain risk assessment solutions are guided by the principles of supply market intelligence to help clients enhance their overall supply chain efficiency. Also, a customized risk assessment process empowers food processing companies to be more confident in their data by quickly detecting supply chain risks.
In this risk assessment engagement, the devised risk assessment process followed a three-step approach that enabled the client to enhance supply chain efficiency. The risk assessment process revolved around analyzing the level of risk exposure to determine the best way to mitigate them. SpendEdge’s risk assessment process undertakes the best approach in risk management and focuses on helping food processing companies understand their impact. It is more of a collaborative process where supply chain risk assessment plans are developed to tackle the challenges of stakeholders who understand the risks and are best able to manage them.
Unattended supply chain risks tend to paralyze most supply chain operations. Hence, its right to conclude that it is essential for every organization to identify the key risk elements within their supply networks and keep them under close supervision. Successful businesses are those that are capable of managing such risks and restoring confidence throughout the global supply network. Nevertheless, if correctly done, by employing a suitable risk assessment process, the benefits are much more than mere cost reduction.