A leading chemical industry client specializing in the manufacturing of coagulants wanted to make their supply chain more resilient to maintain topline revenue growth. Owing to the complexity of their global supply chain, risk occurrence proved to be costlier. To enhance their supply chain risk assessment capabilities, the chemical industry client wanted to develop a risk assessment framework. A detailed quantitative analysis of various categories within the supply chain was carried out to prioritize risks and develop an effective risk assessment framework.
About the Client:
The client is a leading player in the chemical industry, specializing in the manufacturing of coagulants that are supplied to the wastewater management industries across the globe.
The chemical industry client was facing challenges in devising an appropriate risk assessment frameworks that could be implemented across their coagulants manufacturing units.
How did SpendEdge Help the Client?
- Step 1: Risk identification
The first step dealt with the process of supply chain risk identification. It included the creation of a draft list of major risks factors across their supply network.
- Step 2: Probability assessment
The next step after risk identification is to assess the impact of risks and classify them based on their probability of occurrence. This helped the chemical industry client address several issues that affected the flow of information throughout the global supply network.
- Step 3: Risk management framework
The supply chain risk assessment experts at SpendEdge devised a three-step risk management approach that helped the chemical industry client to gain a holistic view of risk factors and develop precise strategies to mitigate the impact or probability of its occurrence.
Key questions answered in this risk assessment engagement include:
Benefits of the Engagement:
The supply chain risk assessment solution offered by our experts helped the coagulants manufacturer gain an overview of various risk factors across their global supply network. Our solutions also assisted the chemical industry in detecting, gauging, and assessing the potential disruptions arising due to a variety of supply chain risks emanating from both external and internal factors. SpendEdge’s risk assessment also offered a detailed lifecycle of risk factors and acted as a tool that helped the client drive business value.
Why incorporate supply chain risk assessment?
The business risks posed by potential supply chain failures are compelling supply chain risk managers in the chemical industry to keep a close handle on their supplier relationships. An ever-growing range of strategic issues arising due to factors such as governance, corporate performance, and sustainability are pressurizing risk managers to include risk assessment as a critical aspect of their business processes.
SpendEdge’s supply chain risk assessment solution helps you to develop a responsive and bespoke approach to risk management. Our experts also offer recommendations that guide the development of appropriate tools and methods including the development of strategies that foster implementation, adoption, and enhancement.
Supply chain risk managers are often well positioned to implement key measures to reduce risks associated with supply chain failures and to ensure superior supplier community performance. But to develop a robust risk assessment framework, different aspects of the supply chain need to be examined in detail. Moreover, implementing risk assessment as the main aspect of your business strategy helps enhance overall business value.
Risk assessment also covers various perspectives of both external and internal supply risks. It includes supplier failure, process breakdowns, poor component quality, and inadequate logistics and distribution skills.