A leading player in the food retail industry wanted to enhance their procurement strategies to overcome operational risks. The failure of their supply chain strategies had greatly impacted their revenue, as a result of which they wanted to implement a detailed supply chain risk assessment to gain a competitive advantage.
SpendEdge was approached by the retail industry client to leverage its expertise in risk assessment and develop an accurate risk mitigation strategy. The supply chain risk assessment engagement entailed a quantitative analysis of various supply chain categories to devise an exclusive risk management approach.
About the Client:
A leading multi-brand food retail major operating in the U.S., which recently made its way into the coveted top 10 listing of the world’s largest and most successful retailers.
The retail industry client was facing several challenges owing to their inefficient supply chain risk management strategies.
How did SpendEdge Help the Client?
- Step 1: Identifying the risk factors and estimating their impact on business operations
Supply chain risks deter businesses from achieving their organizational goals; hence, the first step in supply chain risk assessment deals with the identification and estimation of the impact of risk factors. By doing so, the food retail client was able to classify risks based on the severity of the impact.
- Step 2: Developing a suitable supply chain risk mitigation strategy
An effective risk mitigation strategy utilizes three resources namely – processes, people, and technology. Also, since each of these factors plays a key role in analyzing the gathered data, it’s imperative to establish an infrastructure that is dedicated to continuously gathering, interpreting, and acting on the gathered data.
- Step 3: Developing a precise risk assessment framework
To devise an effective supply chain risk assessment framework, it is essential to analyze the gathered data to identify risks and develop strategies to avoid mishaps. The developed risk assessment framework also helped them identify and manage both short and long-term supply chain risks.
Benefits of the Engagement:
The risk assessment experts at SpendEdge devised a three-step comprehensive approach that helped the food retail client to develop a precise risk assessment framework to enhance procurement efficiency.
Why is supply chain risk assessment essential in the retail industry?
One of the most demanding concerns facing retailers today revolves around supply chain disruptions and its associated impact on revenue, profit, and brand reputation. Moreover, financial crises, natural disasters, and changes in political stability across developing countries have highlighted vulnerabilities both for individual organizations and for industries. However, supply chain risks also include risks arising due to factors such as supply disruptions, transportation delays, embargos, and outsourced service failures.
The diversity in the retail risk environment demonstrates the importance of mitigating supply chain risks with an integrated risk assessment framework. This is exactly what the supply chain risk assessment experts at SpendEdge specialize in. Our industry-specific guidelines help clients to implement an accurate supply chain risk assessment framework to ensure that they meet the industry and framework standards.
Key questions answered in this supply chain risk assessment engagement include
SpendEdge’s supply chain risk assessment solutions are guided by the principles of supply market intelligence to help clients enhance their overall supply chain efficiency. In this risk assessment engagement, the three-step approach aided the retail industry client to integrate supply chain data from various sources to identify supply chain risks and implement appropriate risk mitigation strategies.
Our approach empowered the retail industry player to be more confident in their data so that they can quickly detect supply chain risks. Also, drawing conclusions on this engagement our experts suggest that it is imperative for every organization to identify the key elements of the supply chain that are at risk and keep them under close supervision.
While risks in the supply network tend to paralyze most supply chain operations. Successful businesses are the ones that efficiently manage such risks and reinstate confidence throughout the global supply network. Nevertheless, if rightly done, the benefits are much more than cost reduction.
To know more about our risk assessment solutions