Supplier Risk Analysis Assists a Prominent Transportation Services Provider Reduce the Risk of Supplier Failures
Overview of the Transportation Services Industry The transportation services industry encompasses several sub-sectors including subways, municipal buses, goods transport systems, and other similar modes of transport. Just like the other peer industries, the leading players operating in the transportation services sector are looking at expanding their business units to establish their presence in the market. […]
Overview of the Transportation Services Industry
The transportation services industry encompasses several sub-sectors including subways, municipal buses, goods transport systems, and other similar modes of transport. Just like the other peer industries, the leading players operating in the transportation services sector are looking at expanding their business units to establish their presence in the market. The transportation services sector is a capital-intensive one, and the demand for these services is further driven by the macroeconomic trends in global exports and imports.
Here are a few factors that may curtail the growth of the transportation services industry:
- Economic factors: Transportation projects may have an adverse impact on the community’s economic development objectives including employment, business activity, property values, productivity, and investments. The main aim of such projects revolves around improving the overall accessibility while reducing transportation costs. Hence, it becomes necessary to consider both the positive and negative impacts of economic factors.
- Community impacts: These include the impact of a transportation project on adjacent communities beyond specific factors that adversely affect the direct users of transportation facilities. It is also referred to as ‘social impacts’ and includes changes in walking environments, views, noise, and land use mix and community cohesion. Also, community impacts serve as a significant decision factor when transportation services providers are weighing both the adverse and distributional effects of proposed projects.
To counter these challenges and identify the potential risks in the supply chain, organizations are opting for supplier risk analysis solutions. Supplier risk analysis solutions help businesses to identify, monitor, detect, and mitigate threats to maintain supply chain continuity and profitability.
The Business Challenge and Our Journey:
The client, a well-known player in the transportation services industry, was looking at leveraging supply chain risk management solutions to enhance the quality of the supply-chain and maintain productivity standards while mitigating risks and cutting down costs. With the help of industry best practices, the client wanted to collect, analyze, and manage supplier information efficiently. The primary objective of the transportation services provider was to gain actionable insights into the current industry trends and manipulate data, compliance, and risks across their global supply chains. They were also looking at implementing robust supply chain management solutions to reduce supplier failure rates.
To identify challenges in the supply chain activities, the procurement experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the transportation services sector. The experts also compiled information across a wide array of reliable sources such as trade shows, company presentations, industry forums.
The supply chain risk management solutions offered by SpendEdge assisted the transportation services provider in identifying and collaborating with the right suppliers to bring about a positive impact on their overall business performance. Our solutions helped them in profiling the suppliers based on the typical risks associated with each. Moreover, the client was successful in reducing the cost of maintaining supplier data, which improved the overall supply chain efficiency.
Fundamental questions answered in this supply chain risk management solution include:
SpendEdge’s supply chain risk management solutions offered relevant insights into the compliance and regulatory issues in the transportation services industry. The client was able to identify and collaborate with selected suppliers based on the associated risks to improve the overall supply chain efficiency.