Over the past few years, supplier risk assessment has become a significant process for leading players in the industrial sector to realize and overcome the risks associated in supply chain management. This latest case study by SpendEdge offers an all-inclusive and deep insights on supplier risk assessment best practices to create a robust supplier selection strategy. Furthermore, the higher rates of urbanization coupled with better infrastructure is driving the rapid growth of the industrial sector across the globe. However, the supplier risk assessment analysts at SpendEdge find the fluctuating costs of raw materials a critical challenge in finding and selecting the right supplier in the industry.
Performing a supplier risk assessment is crucial for companies to develop effective supplier management strategies. Request a proposal to access our supplier risk assessment solutions for FREE now!
Key procurement pain points that were addressed in this supplier risk assessment study:
- Getting a detailed business overview of a set of critical suppliers (including private companies) and evaluating them based on different risk elements.
- Understanding suppliers market position and pros and cons of engaging with them
Business challenges and SpendEdge’s approach to supplier risk assessment
The client is a leading player in the industrial sector, manufacturing and supplying products and services to both domestic and international customers. The company has a diverse set of suppliers and their individual performances make a difference on the company’s sustainability. However, the company was facing significant problems associated with supply risks by overlooking supplier risk assessment in the past. Consequently, to leverage a competitive advantage in this market space, most of leading industrial players are opting for supplier risk assessment studies to filter suppliers by category and develop better supplier selection strategies.
The team of supplier risk management experts at SpendEdge conducted a triangulated research methodology, which included primary and secondary research and qualitative and quantitative data collection to meet the specific business requirements of the client. During this supplier risk management study, the client was able to determine the level of due diligence to conduct on the higher-risk suppliers based on dollar spend and location. The client also gained insights into the performances of major suppliers and the recent developments in the supply market.
Key objectives of this study focused on:
- To evaluate suppliers based on different risk areas covering:
- Financial risk analysis
- Regulatory risk
- Reputational risk
- Business risk
- Supply risk
- Geopolitical risk
- Evaluating suppliers’ financial health based on their revenue, profitability, liquidity ratio, management effectiveness and solvency
- To acquire information from various secondary and primary resources
Developing a competitive supplier selection strategy is crucial for companies to stay ahead in the market space. Connect with our experts by requesting service on our procurement platform to gain the latest insights into supply chain risks.
What were the procurement insights derived in this supplier risk assessment by SpendEdge?
- Provided better visibility on different suppliers’ market position with a detailed assessment of different risk parameters
- Provided recommendations on how beneficial it would be to engage with the suppliers and what could be the potential risks
Conducting supplier risk assessment involves performing cluster analysis and understanding risk structure of each supplier cluster. Subscribe now to enjoy free access to our web-based platform for better insights and supplier risk assessment solutions.
SpendEdge shares your passion for driving sourcing and procurement excellence. We act as a global strategic partner for leading Fortune 500 firms and other leading companies across industries. Our strength lies in delivering robust, real-time procurement market intelligence solutions that help sourcing and procurement professionals make informed decisions. Our innovative procurement solutions also help enterprises transform structural capabilities, improve execution efficiency, and fast-track time to savings. Every business needs smart procurement intelligence to stay at the top of their game; we provide actionable insights utilizing lean methodology to help enterprises make better purchasing decisions. We offer businesses with the precise combination of resources, tools, and techniques to help them redefine sourcing and procurement capabilities. We cover a broad spectrum of industries starting from pharmaceutical and life sciences to transportation with expertise in supply market intelligence, spend analysis and benchmarking supply chain risk assessment, and category management.