4 Experts Break Down Supplier Risk & Strategy Tips
- Supplier Management
Supplier risk is a large and complex topic, and there’s plenty more to be said, but in our hour-long discussion Magnus Bergfors, of Spend Matters, in the first of our 2020 Fall Webinar Series, ‘Do You Have a 360° Degree View of Your Suppliers?’, talked about the importance of developing a truly comprehensive supplier strategy and how to set up a program to get a 360° view of your suppliers. Doing so is crucial in order to make informed and actionable decisions.
In addition to Magnus, the other members of our expert panel of Jim Bureau from JAGGAER, Heiko Schwarz from riskmethods, and Emily Rakowski from EcoVadis provided insight on how they are all working together to provide a system that does just that. Using embedded intelligence to aggregate hundreds of thousands of data points in order to bring you actionable data and recommendations on CSR, sustainability, supply chain risk, overall supplier risk, and much more.
Takeaway 1: Supplier Risk is More Global Than Ever
The world is getting smaller, and the problems seem to be getting bigger. Unfortunately, all of the macroeconomic disruptions happening of late mean supply chain problems, and usually major ones. Having a partnership with EcoVadis other riskmethods, we can address these risks faster, more efficiently, and on a more global scale than ever before.
In the webinar, our attendee poll of over 600 people revealed some of the biggest supplier risk priorities for our viewers. Not surprisingly, supply chain risk came in as the majority answer. This is the classical example of supplier risk and one of the more top of mind with the current pandemic. But the others are equally as important and can pose serious problems for your business if not addressed.
Takeaway 2 : It’s Time to Get Proactive with Supplier Risk Management
Surprisingly, nearly 70% of those in attendance do not have a formal risk management program in place, or if they do, it’s only for a small set of critical suppliers. As pointed out by Jim Bureau, “A risk management program is kind of like insurance, you never think about it until you need it, and when you do it’s the most important thing.” By looking at the chaos that has come from the global pandemic you can see the value of this quote. And while all disruptions may not be on the global scale of Covid-19, it’s important to plan today, because all risks, big and small, are a constant threat.
Takeaway 3: You Have to Bring the Right Tool for the Job
Knowing all about supplier risk and how to develop a strategy is great, but without the right tools or systems in place to assist you, it will most likely be an uphill struggle. In this age of social media, and quite frankly, media overload in general, it can be difficult to cut through the noise. There are thousands, sometimes millions of data points that go into a comprehensive supplier risk calculation.
Of those who attended this webinar 75% rely on spreadsheets, emails, or a simple data repository. These tools have value, and belong in your procurement ‘toolkit’, but you wouldn’t build an entire house with only a screwdriver. While functioning as a data storage tool spreadsheets and simple repositories lack the capabilities and visibility to provide a true 360 ° view of your supplier strategy.
That’s where we come in. JAGGAER offers a comprehensive system dedicated to supplier strategy and risk management. Our goal is to aggregate all of your data and help you cut through the noise. Then with the power of AI and the embedded intelligence of our partners in the JAGGAER platform, we can provide actionable insights, full visibility, and help you build a supplier strategy that can not only withstand macroeconomic supply disruptions (like the pandemic), but thrive during them.